ALL >> Investing---Finance >> View Article
Declaring Bankruptcy: Know The Aspects
Bankruptcy filing is one of the most complicated financial processes that a debtor has to undergo. Apart from the insecure feelings that the thoughts of being bankrupt brings in, filing bankruptcy has got a lot other confusions to do with. With the present economy which is facing a deadlock, more and more people are juggling with their never-ceasing debts and thus declaring bankruptcy is seeming to be the last respite for them. As a number of companies are going out of their business, more and more people are losing their jobs, homes and have their credit card ratings plummeted; they are turning to file bankruptcy as the last option. The complicated process of bankruptcy calls for the professional intervention of bankruptcy lawyers who efficiently assess the debtors’ assets and liabilities and guide them accordingly with the formal paperwork and confiscation process. The bankruptcy attorney fees however, depend upon the uniqueness of the financial situation of the debtor and also upon the specific economic standard of the particular living area of the debtor. One thing that a debtor should keep in mind is the change and introduction ...
... of new bankruptcy laws that prohibits any debtor to file bankruptcy until he/she meets the basic eligibility criteria and tests. Personal bankruptcy is a legal process wherein if a debtor is found eligible to file bankruptcy, will no longer owe any debts to the credit card companies or other lenders. In this process the debtor has to be duly assisted by a bankruptcy attorney.
However, the person does not get out of this process completely unscathed. Their credit will reflect the bankruptcy for up to seven years or longer. Declaring bankruptcy is a lengthy process but the same can be made easier if you prepare and plan up your case from beforehand with all the necessary and required information and details in hand. Get all the names of your creditors, what you owe them, how much your monthly payment is and if are delinquent on these accounts, the months in which you are past due is needed as well. In addition, you need to know if the debt is unsecured or secured. After this information is collected, your lawyer will advise on whether you will file a Chapter 7 or Chapter 13 bankruptcy. Which chapter you fall under is basically calculated by taking into account your income and dependants, and comparing this to what the state deems appropriate for you and your family. If you income falls below what the state deems as average, you file a Chapter 7. However, if your income is above this average, you will file a Chapter 13 bankruptcy. Afterwards, your lawyer would send across the bankruptcy notices to all your creditors during which your collection calls and wage garnishments would stop. However, a debtor has to attend two debt management classes, respectively one before the bankruptcy notice is sent to the creditors and the other after the notice is sent to them. If you choose to not attend these classes, you will lose the opportunity to declare bankruptcy. Remember that bankruptcy is not a debt relief option; rather it should be considered when all other debt repayment options are tried and failed.
Add Comment
Investing / Finance Articles
1. Chart Patterns For Effective IntradayAuthor: strike
2. Analysis Of Bank Statements: Essential For Banks And Nbfcs
Author: Aakash Parikh
3. Essential Tips For Buying Crypto Miners: Make Informed Decisions
Author: blockdag
4. Everything You Need To Know About Applying For A Swift Funds Loan
Author: Sofia Alice
5. Finding The Right Mortgage Broker In Abbotsford And Surrey, Bc
Author: Satbir Bhullar Mortgages
6. Jaydeep La Residency Thane Kolshet Road Project 2 & 3 Bhk Flats
Author: akhilagardas
7. Embracing Sustainable Investment With Esg Data & Solutions
Author: By Inrate Team
8. The Importance Of Lead Qualification In Solar Appointment Generation
Author: Shan Tait
9. Setting Up Your Company In Ireland: Key Considerations For Successful Formation
Author: LSC and Partners - Corporate Tax Consultancy LSC
10. Mortgage Lenders edmonton – How Are They Going To Help You
Author: Dominion Lending Centres Ratefair
11. Why Managing An Smsf In Perth Can Maximize Your Retirement Potential?
Author: Daniel Stewart
12. The Future Of Cryptocurrencies: A Look Ahead
Author: Ethan
13. Unlocking The Power Of Biodiversity In Data Solutions & Rating Services
Author: By Inrate Team
14. The Role Of Chartered Tax Advisors: Ensuring Compliance And Maximizing Benefits
Author: Business Tax & Money House
15. Innovative Accounting Solutions For Modern Businesses
Author: Business Tax & Money House