Although in most cases getting some loan is an easy task once you meet all the requirements, paying back the debt may be a big problem to some. The most commonly asked question by most debtors who have a hard time settling the debts is what next for them. 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. It is important to note that bankruptcy is a legal process and it involves the debtor and the lender in case of the debtor gas no capacity to pay back all the loans.
To begin with, you need to know how it all happens in court. The whole process of decision-making in court is made through a judge and an independent contractor who is hired for the case. The decision on whether you are eligible for bankruptcy is made after both the judge and the trustee have reviewed information to declare you bankrupt or not.
You will also get to learn that there are very many types of bankruptcy and you can view here to know more about it. Some of the bankruptcy types are chapter 11, chapter 12 and chapter 13 whereas chapter 7 is the most common. 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. You should always seek to meet the credit counselor for bankruptcy and debt and at the same time assemble all the information that may be necessary for you. Always try to show the court that you have tried all that you could to settle the situation.
Normally, the court will come up with plans to have a look at your financial situation before any decisions are made. This is 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.