What Happens When Filing Bankruptcy
Bankruptcy can happen to any one, anywhere. There are procedures you want to follow when you finish up not in a position to stay committed to your fiscal wishes. the world.
Before filing for bankruptcy, it is highly advisable that you are able to weigh all of the other available alternatives that you could have at your disposal.
To be on the safe side, you would like to have a counsel present. This is mostly because, if your lenders default pay down the contract at some point, you will have a legal representative who will deal with the situation in an acceptable way.
Supposing this option fails and you understand that the sole way out is to file for insolvency, you want to be well capable with the law. Get to understand that there are several chapters under which you can file for bankruptcy in the United States. They are chapters 7, 9, eleven, and thirteen and all of them apply in different capacities to different scenarios.
As an individual, it is more sensible to file under chapter 7 or 13. Chapter seven demands that your assets be liquidated and the proceeds distributed among the creditors. Should you like to retain some valuable property, you are highly suggested to have it exempted from bankruptcy way before you file the petition. It is from this earnings that you are required to provide correct information to your lender until the bill is settled. This can be done for up to five years.
- What Happens When Filing Bankruptcy