A Simple Guide About What Happens When You File for Bankruptcy

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. One area of concern once you realize you are bot able to settle all the debts is the next step that is best for you. 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.

Another important point for you to note is the fact that we have very many types of bankruptcy. Whereas chapter 7 is the most common type of bankruptcy, we also have others like chapter 11, chapter 12 and chapter 13. You should also know that chapter 12 is occupation-based occupation-based as explained on this page. As you view here now, you will also discover more than chapter 7 forgives a lot of debts that have no collateral and it also incurs the risk of selling some of the important property that you may own to pay part of the debt.

You should always consider this task demanding when it comes to the time as well as expenses. 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.

Your financial situation is the next greatest tool for the court before a decision is made. The key participants in looking at your financial statements are the lawyer, the trustee 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. The tips above should give you a clue about what to expect when filing for bankruptcy.