Whereas the process of applying for some loan can be as simple as meeting the qualifications, situations may arise when you are not able to pay the loans back. The biggest that disturbs most people or businesses that are already bankrupt is the next step to take. Most people and even businesses may never like the discussion about bankruptcy but now that it has already hit some people, you must know some key things about this big threat. Read more here now to get more info about what happens when you file for 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. Both the judge and the trustee are the ones to review information to discover whether you are worth bankruptcy or not.
It is also important to note that various types of bankruptcy exist just as explained in this website. Whereas chapter 7 is the most common type of bankruptcy, we also have others like chapter 11, chapter 12 and chapter 13. It is also important that you get to know that some of these types of bankruptcy are occupation-based such as chapter 12. You will also get to know that most of the debts in chapter 7 are forgiven and it also entails the risk of having to sell some of your assets to clear part of the debts.
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. Be prompt to show the court that you made efforts in ensuring that everything is settled.
You also need to know that normally there are plans to have a look at your financial situation as arranged by the court. The whole process of having a look at your financial statements is normally done by the court trustee, the lawyer, and the creditor. You should, however, have it that the process takes several days or even months and in some cases could go as long as 6 months. Above are the important things to know when filing for bankruptcy.