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. One area of concern once you realize you are bot able to settle all the debts is the next step that is best for you. 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.
Firstly, you need to drive your attention to whatever happens in the courts before you get to know other things. 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.
Another important point for you to note is the fact that we have very many types of bankruptcy. Some of the bankruptcy types are chapter 11, chapter 12 and chapter 13 whereas chapter 7 is the most common. 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.
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.
Normally, the court will come up with plans to have a look at your financial situation before any decisions are 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 need to note that this process lasts for a long time and can take up to 6 months The tips above should give you a clue about what to expect when filing for bankruptcy.
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