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. Most people and even businesses may never like the discussion about bankruptcy but now that it has already hit some people, you must know some key things about this big threat. Through the article herein, you will learn more 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. Those who play the role of making the decision are the judge and the trustee who is hired for the case. 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. Some of the bankruptcy types are chapter 11, chapter 12 and chapter 13 whereas chapter 7 is the most common. 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.
As a debtor, it is important to know that this process is very long as well as expensive. 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. 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.