A Simple Guide About What Happens When You File 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 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. You should have it from the beginning that bankruptcy is a legal process and all the proceedings are held in coulearn, you will get to learn more about some key things that you need to know about bankruptcy.
One of the most basic thing that you need to know about is the process and whatever happens in court. The whole process of decision-making in court is made through a judge and an independent contractor who is hired for the case. Both the judge and the trustee are the ones to review information to discover whether you are worth bankruptcy or not.
It is also important to note that various types of bankruptcy exist just as explained in this website. 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. You will also get to know that most of the debts in chapter 7 are forgiven and it also entails the risk of having to sell some of your assets to clear part of the debts.
Bankruptcy filing is both a long and expensive task. 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. Always try to show the court that you have tried all that you could to settle the situation.
You also need to know that normally there are plans to have a look at your financial situation as arranged by the court. This is done by the court trustee, the lawyer and the creditor. You need to note that this process lasts for a long time and can take up to 6 months With the tips above, you will know all things that are important to you before you file for bankruptcy.