Important Aspects to Know When You File for Bankruptcy
However simple it may be to get some loans from a bank or any other lender, the truth is that certain conditions may make you find it very hard to pay back the debt. The most commonly asked question by most debtors who have a hard time settling the debts is what next for them. Although bankruptcy can be termed as a misfortune and nobody ever wishes to find themselves in such a situation, it is a reality that has already hit the world and the best option is to know what is important for should you find yourself here. Read more here now to get more info about what happens when you file for bankruptcy.
One of the most basic thing that you need to know about is the process and whatever happens in court. The decision about bankruptcy is made in court and this is through a judge and an independent contractor who is hired for this service. Both the judge and the trustee are the ones to review information to discover whether you are worth bankruptcy or not.
Another important point for you to note is the fact that we have very many types of bankruptcy. Whereas chapter 7 is the most common type of bankruptcy, we also have others like chapter 11, chapter 12 and chapter 13. You also ought to know that chapter 12 is in most cases occupation-based occupation-based. Although chapter 7 bankruptcy may forgive most of the debts, you may have to sell some of the important bassets that you own to pay the debt.
You should always consider this task demanding when it comes to the time as well as expenses. You should always seek to meet the credit counselor for bankruptcy and debt and at the same time assemble all the information that may be necessary for you. You should also be at the frontline to show the court that you have made the best effort you could in an attempt to fix the situation.
Normally, the court will come up with plans to have a look at your financial situation before any decisions are made. The key participants in looking at your financial statements are the lawyer, the trustee and the creditor. You should, however, have it that the process takes several days or even months and in some cases could go as long as 6 months. With the tips above, you will know all things that are important to you before you file for bankruptcy.
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