Process And Procedures For Filing Bankruptcy
Process And Procedures For Filing Bankruptcy
The state of the economy has lead to a seemingly growing trend in bankruptcy filing. There have been twice as many filings in the past decade than the decade before and the trend shows HH0-330no sign of waning. Those who have lost their jobs and are unable to secure sufficient employment are sometimes left no other option. It can do a lot for you but it can also cause some problems that many are not prepared for.
There are actually two types of insolvency that can be filed; Chapter 7 and Chapter 13. Each one provides protection from creditors in their own way. Chapter 7 is considered a fresh start where all debts are discharged. Chapter 13 is the reorganizing of some of your debts in an effort to pay them off in a short period of time. There are advantages and disadvantages to filing both of these.
Some of the advantages include a complete discharge of your debts if you choose or you can reorganize some of them. It can stop collection calls, foreclosure on your home or stop repossession of your car or force the creditor to return it after repossession. It can prevent your utilities from being disconnected and even get your license back due to court fees not being paid but not if they were taken due to DUI.
In most instances securities that have been placed on loans such as mortgage or vehicle cannot be eliminated. It will not discharge any payments related to child support or alimony, divorce, restitution, taxes or student loans. Any loans that have been co-signed will not relieve the co-signer from responsibility of repaying the loan.
There are some preparations to be made before filing one of these liquidation processes. You will be asked to make a list of all items you own including both real and personal. The value of these will be estimated by you and your attorney and presented to the court trustee. If you own more than the allowed limits, your items can be sold to satisfy some of the debt you owe.
You will be required to appear one time in court to answer some questions by the trustee. This is where your creditors can appear as well and attempt to prevent you from filing on them. It usually always goes in favor of the filer though and creditors cannot be abusive during the process so there should be no worries about appearing.
It generally takes between two and six months for the process to be completed. Once a judge has signed the papers, you are issued a copy. You should retain the copy for your records and in the event someone attempts to collect on a debt that was filed on, you can show them the paper.
Bankruptcy usually remains on your credit record for a period of ten years. This does not mean you cannot obtain credit in this time, only that lenders can take that under consideration. It is not recommended that you file any type of liquidation unless you see no other way around it and you cannotHH0-250 get out from under your bills.
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