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Whereas the process of applying for some loan can be as simple as meeting the qualifications, situations may arise when you are not able to pay the loans back. 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. You should have it from the beginning that bankruptcy is a legal process and all the proceedings are held in coulearn, you will get to learn more about some key things that you need to know about bankruptcy.
Firstly, you need to drive your attention to whatever happens in the courts before you get to know other things. The decision about bankruptcy is made in court and this is through a judge and an independent contractor who is hired for this service. The two parties will take their time and have a review and finally make a decision whether you are eligible for bankruptcy or not.
It is also important to note that various types of bankruptcy exist just as explained in this website. Some of the bankruptcy types are chapter 11, chapter 12 and chapter 13 whereas chapter 7 is the most common. You also ought to know that chapter 12 is in most cases occupation-based occupation-based. Although chapter 7 bankruptcy may forgive most of the debts, you may have to sell some of the important bassets that you own to pay 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. Be prompt to show the court that you made efforts in ensuring that everything is settled.
Your financial situation is the next greatest tool for the court before a decision is made. The key participants in looking at your financial statements are the lawyer, the trustee 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.