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Frequently Asked Insolvency Questions

Frequently Asked Insolvency Questions
"""Bankruptcy FAQ

What will my bankruptcy cost me?
Chapter 7 bankruptcy cases typically cost between $1000 and $2000. Although this is a reasonable estimate, costs will vary based on your situation and the type of bankruptcy you file. A Chapter 13 is more expensive due to the increased time and effort required.

Do I risk losing everything?
No you will not. Depending on the type of bankruptcy you declare, you may lose absolutely nothing. If you petition under Chapter 13, the court will not require you to surrender any assets. In Chapter 7 bankruptcy, the court will require you to surrender any non-exempt assets; however, with the assistance of a bankruptcy attorney, the vast majority of debtors will not be required to surrender any assets.

Will my creditors abandon me?
Certainly, they will. After you file for bankruptcy, your creditors will no longer be able to attempt to collect money from you. This occurs because the bankruptcy court will automatically send a stay to all of your creditors. This automatic stay prohibits them from contacting you in any way.

What effect will bankruptcy have on my credit score?
A bankruptcy can remain on your credit report for up to ten years following the filing date. Most individuals are not authorized for a mortgage loan for two to three years following a bankruptcy filing. After three years, however, the majority of people discover that the major effects of bankruptcy have diminished significantly.

What occurs during insolvency?
All debtors are required to complete a credit counseling course prior to registering for bankruptcy. This course is available in-person, over the phone, and online. Your attorney will assist you in registering for it.

Your bankruptcy attorney will then assist you in compiling the necessary documents so that your request can be filed with the bankruptcy court correctly. After filing for bankruptcy, an automatic stay is enacted. This prevents creditors from contacting you in the future.

Then, you will compile a list of your assets and liabilities. Your assets will be separated into two categories: exempt and taxable. You will retain all of your exempt assets, and your attorney will safeguard them by declaring them exempt. You will bring this list to a meeting with your creditors and a bankruptcy court-appointed trustee. The trustee will dispose any of your non-exempt assets. The funds will be distributed to your creditors. The remainder of your debt will be cancelled.

All that remains is to complete a personal financial management course, which can be completed in person, over the phone, or online. After that, you will live a debt-free existence!""

" - https://www.affordablecebu.com/
 

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"Frequently Asked Insolvency Questions" was written by Mary under the Finance / Wealth category. It has been read 152 times and generated 0 comments. The article was created on and updated on 02 June 2023.
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