Essential Things You Should Know About Filing for Bankruptcy
Although in most cases getting some loan is an easy task once you meet all the requirements, paying back the debt may be a big problem to some. The biggest that disturbs most people or businesses that are already bankrupt is the next step to take. Even though bankruptcy is never a nice topic for most business and people, it is already with us and the best we can do is to enlighten you on the right step to take should you be a victim. One of the key things that you need to note is that bankruptcy is a legal process meaning that everything is decided in court and it involves both the lender and the debtor.
Firstly, you need to drive your attention to whatever happens in the courts before you get to know other things. Those who play the role of making the decision are the judge and the trustee who is hired for the case. The decision on whether you are eligible for bankruptcy is made after both the judge and the trustee have reviewed information to declare you bankrupt or not.
It is also important to note that various types of bankruptcy exist just as explained in this website. Among the various types of bankruptcy is chapter 11, chapter 12 and chapter 13 whereas chapter 7 is the most common one. It is also important that you get to know that some of these types of bankruptcy are occupation-based such as chapter 12. As you view here now, you will also discover more than chapter 7 forgives a lot of debts that have no collateral and it also incurs the risk of selling some of the important property that you may own to pay part of the debt.
You should always consider this task demanding when it comes to the time as well as expenses. Remember you will have to meet the credit counselor for bankruptcy and debt as well as putting all the relevant information in place for the process. Be prompt to show the court that you made efforts in ensuring that everything is settled.
Your financial situation is the next greatest tool for the court before a decision is made. The whole process of having a look at your financial statements is normally done by the court trustee, the lawyer, 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. The tips above should give you a clue about what to expect when filing for bankruptcy.
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