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. 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.
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.
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. It is also important that you get to know that some of these types of bankruptcy are occupation-based such as chapter 12. Although chapter 7 bankruptcy may forgive most of the debts, you may have to sell some of the important bassets that you own to pay 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. 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 With the tips above, you will know all things that are important to you before you file for bankruptcy.