When you get into a financial mess that incapacitates you as far as paying your creditors is concerned, you will need to file for bankruptcy. While it is true that filing for bankruptcy can give you such relief from your debts, it does not necessarily mean that all forms of debts can be forgiven. You therefore need to do your homework and be sure exactly why you want to file for insolvency.
In the past, bankruptcy counseling was not known to many. This is because, it was not compulsory for one to go through counseling in order to qualify filing a financial distress petition. However the rules governing such cases have changed and it is becoming very difficult for anyone to file for bankruptcy without first going for counseling sessions and producing a certificate.
Bankruptcy is a legally declared situation in which a person is unable to pay debts in good time. There are mainly two chapters in which an individual can file a petition. These are chapters 7 and 13. Chapter 7, also known as the liquidation chapter allows for an appointed trustee to sell off the assets of the debtor and divide the proceeds among the creditors.
Bankruptcy is a legally declared situation in which a person is unable to pay debts. A petition on the same is filed either voluntarily or involuntarily. This means that the debtor who has accepted his condition may decide to go to court and file a financial distress petition or the creditors may choose to file the petition against the debtor. For the petition to be accepted in the courts dealing with such cases, one is required to file, alongside the petition, recent financial statements to show how they are fairing financially.
Bankruptcy counseling can only be done by authorized agencies who are experts in handling such cases. This way the court where a financial distress case has been filed will direct the debtor to an appropriate non-profit making budget and credit counselors. The sessions will take almost four hours in total. The debtor will also be guided on how to discover the mistakes made previously, landing him in into a financial crisis.
Many people are faced with the question of what will happen to them once they have been declared financially unable to handle their debts. Some wallow in self pity while others tend to live with the guilt of having not been able to handle a financial crisis. There are two chapters under which individuals can file petitions for bankruptcy. These are chapters 7 and 13, both of which the debtor must go through counseling before the court can proceed with the hearing.
Sometimes, we need professional help when dealing with bankruptcy, yet the assistance that you will get requires finances which you do not have. Affording these services will entirely be out of question. This is because, by the time you are considering filing for insolvency, it is already clear that you are in a tricky financial maze. Filing for bankruptcy can be an expensive affair, especially when you have to hire a lawyer to work with you through the process.
There are many factors that lead you into handling the process of filing for bankruptcy without a lawyer. The most common among them is the lack of resources to cater for the fees that are charged by the lawyer. This is made worse by the fact that some practicing lawyers are out to take advantage of your situation and rip you off your little and almost non-existent finances.
People faced with bankruptcy feel as though it is the end of their lives. Not many know that they can continue with their normal lives despite the circumstances. There are mainly two chapters that individuals can file for a bankruptcy petition, chapter 7 and 13. Chapter 7 allows for the debtors property to be sold and the money gotten paid to the creditors who have proved that they have claim over the alleged property.
In many parts of the world, people are filing petitions for bankruptcy every year. Statistics record that millions of people all over the world opt for financial distress every year. There are mainly two chapters under which financial crisis are filed. Chapter 7 allows for the debtor to sell his property through a trustee to pay off his debts. Chapter 13 requires the debtor to continue working to earn money that can allow him to pay off his debts.