A business or individual declares bankruptcy when it is legally unable to pay its creditors. There are various forms of bankruptcy, including Chapter 9, Chapter 13, and others. You must submit a petition, which includes a statement of assets and liabilities. Each jurisdiction has its own bankruptcy court.
What will occur following your bankruptcy filing? It depends. You may have to pay off a small or substantial amount of debt. You can lose your property, but you might not. The results of your bankruptcy will depend on the specifics of your case. Insolvency will undoubtedly affect your credit score.
There are negative effects of bankruptcy on your credit rating. Your credit score may decline by at least 300 points. This could make it problematic to obtain credit card approval. A bankruptcy can provide you with a fresh start in terms of your credit rating. Now that you have learned from your errors, presumably you will not repeat them. Some credit issuers will grant you credit cards if you have attempted to rectify your past errors, unlike those who still owe substantial amounts.
You may also be eligible for credit cards, as you cannot file for bankruptcy again for several years. The best strategy for reestablishing credit is to obtain a secured credit card; after approximately six months, you may be eligible for unsecured credit cards.
Filing for bankruptcy can be frightening, humiliating, and perplexing. It can also be a lengthy process involving numerous laws and regulations. The positive news, however, is that there are means to recover and move on.""
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