Essential Things You Should Know About Filing 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. 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. The two parties will take their time and have a review and finally make a decision whether you are eligible for bankruptcy or not.
Another important point for you to note is the fact that we have very many types of bankruptcy. Whereas chapter 7 is the most common type of bankruptcy, we also have others like chapter 11, chapter 12 and chapter 13. You also ought to know that chapter 12 is in most cases occupation-based occupation-based. As you view here now, you will also discover more than chapter 7 forgives a lot of debts that have no collateral and it also incurs the risk of selling some of the important property that you may own to pay part of the debt.
You should always consider this task demanding when it comes to the time as well as expenses. 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. 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 Above are the important things to know when filing for bankruptcy.