Filing a bankruptcy petition is a horrific experience for many people. Consumers often have a hard time coming to terms with debt problems and financial challenges. Unfortunately, these problems can never be wished away. They have to be tackled head on. At times declaring bankruptcy may be the most suitable solution. Since the average consumer may not have enough information about this option getting bankruptcy advice online may be a good idea.
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 have a number of benefits. For one, they can help stop creditors from hassling you. Secondly, you will get the protection of the court from collection agencies and financial institutions. Your debts will also be reduced or written off completely. This can help you to start life afresh without any debt. There are many other benefits that are offered by the different types of bankruptcies.
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 desirable option compared to other chapters. This is largely due to the fact that no asset is liquidated. Instead, the debtor proposes a repayment plan. If accepted by the court and honored by the debtor, no asset will be sold. The beauty of this option is that the monthly payments are based on what the debtor can afford, and not what he or she owes.
A professional adviser will be objective when outlining the pros and cons of all the available debt settlement options. He or she will also list the types of debts that can be written off as well as those that must be settled. The effects of bankruptcies on credit scores will also be highlighted by a professional. This information will prepare the debtor well to deal with the consequences of being bankrupt.
All a person needs to do to get legal protection from creditors and financial institutions is file a petition in court. Those who do not know how to prepare and file this type of document can hire a professional to offer assistance. This can be: an attorney, who has experience handling similar cases; or a professional tax preparer.
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 have a number of benefits. For one, they can help stop creditors from hassling you. Secondly, you will get the protection of the court from collection agencies and financial institutions. Your debts will also be reduced or written off completely. This can help you to start life afresh without any debt. There are many other benefits that are offered by the different types of bankruptcies.
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 desirable option compared to other chapters. This is largely due to the fact that no asset is liquidated. Instead, the debtor proposes a repayment plan. If accepted by the court and honored by the debtor, no asset will be sold. The beauty of this option is that the monthly payments are based on what the debtor can afford, and not what he or she owes.
A professional adviser will be objective when outlining the pros and cons of all the available debt settlement options. He or she will also list the types of debts that can be written off as well as those that must be settled. The effects of bankruptcies on credit scores will also be highlighted by a professional. This information will prepare the debtor well to deal with the consequences of being bankrupt.
All a person needs to do to get legal protection from creditors and financial institutions is file a petition in court. Those who do not know how to prepare and file this type of document can hire a professional to offer assistance. This can be: an attorney, who has experience handling similar cases; or a professional tax preparer.
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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