Bankruptcy is not something anyone would wish for in their lifetime. When you are declared bankrupt, the consequences will soon follow, and it can be a scary experience. Being in a state of bankruptcy makes a person incapable of accessing credit facilities. Unfortunately, it may sometimes be the only option for dealing with a debt problem. Therefore, it is in your best interest to get bankruptcy advice online from a professional.
The only debt settlement methods available to individuals who are deep in debt include chapter seven and chapter 13. These are only for individual debtors. Businesses and corporations can apply for chapter seven or chapter 11. A professional debt adviser should be able to explain the shortcomings, requirements and shortcomings of each of these options.
Bankruptcies are beneficial to some extent. Firstly, it can stop creditors from foreclosing or repossessing property. It also halts any communication between the two parties; creditors and the debtor. Thirdly, it helps debtors to get rid of huge amounts of debt. Please note that the benefits may vary with the chapter filed.
Chapter 7 is arguably the most popular legal method for getting rid of debt. It is simple in the sense that, part of the debt is repaid using money recovered from the auctioning of assets. Any other unpaid debt is written off after the process. A trustee is usually in charge of the whole process. The option is best suited for debtors who have lost their only source of income.
Chapter 13 is a more lenient option. Once a debtor is declared bankrupt, his or her assets are not liquidated. Instead, the debtor is allowed to keep his or her assets provided they make monthly payments to offset the outstanding debt. The main advantage of this option is that monthly payments are dictated by the monthly income of the debtor, and not the outstanding debt. Most people who are facing foreclosure can use this option to prevent the bank from taking their homes.
A good adviser should outline all the benefits and drawbacks of seeking this option. He or she should be able to inform the client that some debts can never be written off. These include spousal support payments, student loans an child maintenance payments. Another important point that must be stressed by the adviser is that the bankruptcy entry will feature in the credit report of the debtor for a period of seven years. A competent adviser should help the debtor to weigh all the advantages as well as disadvantages and help the debtor to make the right decision.
For a debtor to get legal protection, the right petition must be filed in court. Since most people know little about legal matters, professional assistance should be sought. A petition preparer, or an experienced attorney, can offer this assistance either online or offline.
If your are an individual, a business or an institution, becoming bankrupt is always an option. Since the court cannot oversee the process directly, a trustee is often appointed to act in the best interest of the law. This is a neutral party that is mandated with scrutinizing petitions. This is the person that will advice the court to either reject or approve the petition.
The only debt settlement methods available to individuals who are deep in debt include chapter seven and chapter 13. These are only for individual debtors. Businesses and corporations can apply for chapter seven or chapter 11. A professional debt adviser should be able to explain the shortcomings, requirements and shortcomings of each of these options.
Bankruptcies are beneficial to some extent. Firstly, it can stop creditors from foreclosing or repossessing property. It also halts any communication between the two parties; creditors and the debtor. Thirdly, it helps debtors to get rid of huge amounts of debt. Please note that the benefits may vary with the chapter filed.
Chapter 7 is arguably the most popular legal method for getting rid of debt. It is simple in the sense that, part of the debt is repaid using money recovered from the auctioning of assets. Any other unpaid debt is written off after the process. A trustee is usually in charge of the whole process. The option is best suited for debtors who have lost their only source of income.
Chapter 13 is a more lenient option. Once a debtor is declared bankrupt, his or her assets are not liquidated. Instead, the debtor is allowed to keep his or her assets provided they make monthly payments to offset the outstanding debt. The main advantage of this option is that monthly payments are dictated by the monthly income of the debtor, and not the outstanding debt. Most people who are facing foreclosure can use this option to prevent the bank from taking their homes.
A good adviser should outline all the benefits and drawbacks of seeking this option. He or she should be able to inform the client that some debts can never be written off. These include spousal support payments, student loans an child maintenance payments. Another important point that must be stressed by the adviser is that the bankruptcy entry will feature in the credit report of the debtor for a period of seven years. A competent adviser should help the debtor to weigh all the advantages as well as disadvantages and help the debtor to make the right decision.
For a debtor to get legal protection, the right petition must be filed in court. Since most people know little about legal matters, professional assistance should be sought. A petition preparer, or an experienced attorney, can offer this assistance either online or offline.
If your are an individual, a business or an institution, becoming bankrupt is always an option. Since the court cannot oversee the process directly, a trustee is often appointed to act in the best interest of the law. This is a neutral party that is mandated with scrutinizing petitions. This is the person that will advice the court to either reject or approve the petition.
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