The Essentials of – Getting to Point A
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. 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. Through the article herein, you will learn more about what happens when you file for bankruptcy.
Firstly, you need to drive your attention to whatever happens in the courts before you get to know other things. 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.
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. 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.
As a debtor, it is important to know that this process is very long as well as expensive. One of the things that you must always be ready for is to meet the credit counselor for bankruptcy and debt and also assembling all the important information for the process. Be prompt to show the court that you made efforts in ensuring that everything is settled.
You also need to know that normally there are plans to have a look at your financial situation as arranged by the court. The key participants in looking at your financial statements are the lawyer, the trustee 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. Above are the important things to know when filing for bankruptcy.