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.
To begin with, you need to know how it all 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. The two parties will take their time and have a review and finally make a decision whether you are eligible for bankruptcy or not.
You will also get to learn that there are very many types of bankruptcy and you can view here to know more about it. Among the various types of bankruptcy is chapter 11, chapter 12 and chapter 13 whereas chapter 7 is the most common one. You should also know that chapter 12 is occupation-based occupation-based as explained on this page. 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.
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. Always try to show the court that you have tried all that you could to settle the situation.
Your financial situation is the next greatest tool for the court before a decision is made. 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.