Important Aspects to Know When You File for Bankruptcy
Whereas the process of applying for some loan can be as simple as meeting the qualifications, situations may arise when you are not able to pay the loans back. 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.
To begin with, you need to know how it all happens in court. Those who play the role of making the decision are the judge and the trustee 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. 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.
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 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.