Important Aspects to Know When You File for Bankruptcy
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 biggest that disturbs most people or businesses that are already bankrupt is the next step to take. 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. One of the key things that you need to note is that bankruptcy is a legal process meaning that everything is decided in court and it involves both the lender and the debtor.
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.
You will also get to learn that there are very many types of bankruptcy and you can view here to know more about it. 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.
Bankruptcy filing is both a long and expensive task. Remember you will have to meet the credit counselor for bankruptcy and debt as well as putting all the relevant information in place for the process. Always try to show the court that you have tried all that you could to settle 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. This is done by the court trustee, the lawyer and the creditor. It is, however, important to note that this process is not a one-day event and could take as long as several months before any approvals are made. The tips above should give you a clue about what to expect when filing for bankruptcy.