Answers to Commonly Asked Questions About Bankruptcy
Most of us, no matter how uneasy or embarrassing it is to admit that we are into some sort of debt are forced to admit that we have difficulty sustaining our needs and making our finances meet. The American population, specifically consumers with families can attest to this feeling. Dealing with debts is never easy, majority of us feel so stressed out and exhausted to the point of cringing just hearing the word "debt". When debts become really hard to handle, this is the time when things get way out of hand. Decision makings become too blurry due to the pressure of relieving a person's credits and expenditures.
If you have tried to seek out different forms and techniques to eliminate your debts and refinance your money and assets, at most times, filing for bankruptcy is the best way to go. Although it is regarded as a last option by many of us, sometimes, the best way to go is to have a complete overhaul; a 360 degree turnaround.
Understanding the Bankruptcy Method
Bankruptcy, unlike all other debt help techniques presented to consumers, is a very unique and distinct form of debt elimination. It has special characteristics and special attributes involved. Even though many consumers view the bankruptcy method as a route for permanent lose and total damage, still it has a lot of good sides to it. Positive and negative aspects are common to every single system there is. After all, no technique will be unique if it entails all good stuff and never the bad stuff.
Bankruptcy is a legitimate process of doing debt elimination by closing all existing debts a consumer may have. It is legal since filing for bankruptcy is done under the supervision of a judicial court. It is a procedure in which people who are trapped in a difficult situation are given the opportunity to start a fresh and improved way of life. Also, the bankruptcy method can be of great advantage to you since all problems you have regarding your debts will vanish in just a snap of your fingers. This is done through the help of the federal law which allows debtor's to close all existing debts especially if they owe more money than they can pay.
Declaring for one does not necessarily point out directly that you are incapable of repaying your debts to your creditors but rather it is a means for you to pause for a moment and reorganize your income, debts and expenditures for you to make a repayment plan or a better fiscal management plan - a plan which involves saving up and setting a budget plan to be done on a daily, monthly, annual or quarterly basis.
However, there are still a lot of notions surrounding the bankruptcy aspect; questions which seek answers.
Questions and Answers Regarding the Bankruptcy Method
1.) What are the 2 types of bankruptcy?
The bankruptcy law states that there are 2 forms of bankruptcy. The first one is the Chapter 7 bankruptcy. This was created by the United States Bankruptcy Code which deals with the liquidation of an individual or a business corporation's asset. Under this law, the court is given the sole custody to take over the assets and give out the proper amount of repayment to each of the debtor's creditor. Chapter 13 is the second form of bankruptcy. In this area, the main focus is the homeowners. Its primary objective is to see to it that a couple, the spouse or the whole family is assisted towards reduction of debts. Mortgages are also given out to qualified candidates.
2.) How much does bankruptcy cost?
Declaring bankruptcy involves certain fees which the debtor must pay in order to successfully file for one. The Chapter 7 and Chapter 13 types of bankruptcy have their own corresponding fees. Normally, the bankruptcy which deals with liquidating a person's assets is costs higher than bankruptcy for residential homeowners.
3.) What are the steps involved?
When you decide to file for bankruptcy, you are asked to make a detailed list of all current debts you have. After listing all existing debts, the process will begin. Credit cards which have balances can be paid out. All assets you have should be presented as well, except for your personal assets (cash, bank accounts, stocks, benefits, certain furniture's and appliances as well as your clothes).
4.) How long does it take to file for one?
It usually takes only about 3-6 months to accomplish filing one. The maximum time would be 1 year.
If you have tried to seek out different forms and techniques to eliminate your debts and refinance your money and assets, at most times, filing for bankruptcy is the best way to go. Although it is regarded as a last option by many of us, sometimes, the best way to go is to have a complete overhaul; a 360 degree turnaround.
Understanding the Bankruptcy Method
Bankruptcy, unlike all other debt help techniques presented to consumers, is a very unique and distinct form of debt elimination. It has special characteristics and special attributes involved. Even though many consumers view the bankruptcy method as a route for permanent lose and total damage, still it has a lot of good sides to it. Positive and negative aspects are common to every single system there is. After all, no technique will be unique if it entails all good stuff and never the bad stuff.
Bankruptcy is a legitimate process of doing debt elimination by closing all existing debts a consumer may have. It is legal since filing for bankruptcy is done under the supervision of a judicial court. It is a procedure in which people who are trapped in a difficult situation are given the opportunity to start a fresh and improved way of life. Also, the bankruptcy method can be of great advantage to you since all problems you have regarding your debts will vanish in just a snap of your fingers. This is done through the help of the federal law which allows debtor's to close all existing debts especially if they owe more money than they can pay.
Declaring for one does not necessarily point out directly that you are incapable of repaying your debts to your creditors but rather it is a means for you to pause for a moment and reorganize your income, debts and expenditures for you to make a repayment plan or a better fiscal management plan - a plan which involves saving up and setting a budget plan to be done on a daily, monthly, annual or quarterly basis.
However, there are still a lot of notions surrounding the bankruptcy aspect; questions which seek answers.
Questions and Answers Regarding the Bankruptcy Method
1.) What are the 2 types of bankruptcy?
The bankruptcy law states that there are 2 forms of bankruptcy. The first one is the Chapter 7 bankruptcy. This was created by the United States Bankruptcy Code which deals with the liquidation of an individual or a business corporation's asset. Under this law, the court is given the sole custody to take over the assets and give out the proper amount of repayment to each of the debtor's creditor. Chapter 13 is the second form of bankruptcy. In this area, the main focus is the homeowners. Its primary objective is to see to it that a couple, the spouse or the whole family is assisted towards reduction of debts. Mortgages are also given out to qualified candidates.
2.) How much does bankruptcy cost?
Declaring bankruptcy involves certain fees which the debtor must pay in order to successfully file for one. The Chapter 7 and Chapter 13 types of bankruptcy have their own corresponding fees. Normally, the bankruptcy which deals with liquidating a person's assets is costs higher than bankruptcy for residential homeowners.
3.) What are the steps involved?
When you decide to file for bankruptcy, you are asked to make a detailed list of all current debts you have. After listing all existing debts, the process will begin. Credit cards which have balances can be paid out. All assets you have should be presented as well, except for your personal assets (cash, bank accounts, stocks, benefits, certain furniture's and appliances as well as your clothes).
4.) How long does it take to file for one?
It usually takes only about 3-6 months to accomplish filing one. The maximum time would be 1 year.
