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Bankruptcy Expressed In Simple Terms

Bankruptcy Expressed In Simple Terms
"""Bankruptcy is typically the end result in the absence of appropriate money management and debt management measures, and sometimes in spite of them as well. But what exactly is bankruptcy, and what should you anticipate?

In the past, it was common for people to file for bankruptcy to alleviate their financial burdens quickly and without effort at the expense of their creditors. Since 2005, however, when the Bankruptcy Abuse Prevention and Consumer Protection Act went into effect, the number of bankruptcy filings has decreased dramatically.
The issue is that the new act has set the limits too high, so that few can now qualify for the relief bankruptcy provides, despite the fact that no one desires to be in such a position.

Chapter 7 Insolvency and Chapter 13 Insolvency

According to current law, there are two distinct categories of bankruptcy. The two processes are entirely distinct and must be treated as such. In extreme situations where the delinquent can no longer repay debt and needs a fresh start, Chapter 7 bankruptcy is an option.
This form of bankruptcy eliminates debt by canceling a portion of each creditor's outstanding debt through the sale of the debtor's assets.

In contrast, Chapter 13 bankruptcy does not inherently involve the sale of assets. Instead, the debtor and the community of creditors, with the assistance of the court, negotiate new terms and establish a new repayment program that is feasible, affordable, and economically viable for both parties.

What about declaring bankruptcy by myself?

Why spend thousands of dollars on legal fees when you can file for bankruptcy on your own?, you have surely heard by now. The question is whether everyone can do so. It is true that it is possible, but a counsel will likely save you considerable time and money. Legal professionals are well-versed in all the technicalities that can facilitate greater financial comfort.

In addition, the new bankruptcy law mandates credit counseling prior to filing your bankruptcy forms. Therefore, if bankruptcy is your only option, you will already be familiar with your circumstance and options and have sufficient knowledge to determine whether you need legal counsel.
If you are uncertain about how to navigate this process, you should always consult with an attorney.

Foreclosure Is a Threat; Take Precautions

Inability to repay your mortgage can jeopardize your home. Financial failure may result in the loss of your home to foreclosure. If your mortgage loan lender threatens you in any way, if you receive notice of a possible foreclosure, or if you suspect something is amiss because the lender is no longer attempting to recover the investment, you should contact an attorney immediately. If at all feasible, there are attorneys who specialize in these matters who will be able to assist you in avoiding foreclosure. Remember that time is of the essence with regard to this issue.""

" - https://www.affordablecebu.com/
 

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"Bankruptcy Expressed In Simple Terms" was written by Mary under the Finance / Wealth category. It has been read 119 times and generated 0 comments. The article was created on and updated on 02 June 2023.
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