In the event that bankruptcy proves to be the most preferable and advantageous option for you, it is essential to be familiar with the various rules followed by bankruptcy courts in order to file a successful petition.
Only unsecured obligations, such as credit cards, overdrafts, and unsecured loans, can be discharged via bankruptcy. It cannot excuse you from repaying loans such as delinquent taxes, fraudulent loans, alimony, child support, etc.
Prior to filing for bankruptcy, the court has mandated that individuals complete a credit counseling course with a licensed counselor. In order for your petition to be accepted, you must submit the Bankruptcy Counseling Certificate to the court at the time of filing. Additionally, the counseling course must be completed within 180 days prior to the bankruptcy petition.
Individuals must pass a means test to demonstrate that their annual income does not exceed the state median income for their family size.
The court requires individuals who have filed for bankruptcy to complete a course in Personal Financial Management. The court may dismiss your case without a release if you submit the Certificate of Completion without having actually completed the course.
Personal bankruptcy, which can only be used by individuals and not businesses to lawfully declare their insolvency, has been divided into two types by the bankruptcy courts: chapter 7 and chapter 13 bankruptcy. The two varieties of bankruptcy, which differ in their rules and operational procedures, were designed to meet the needs of individuals with varying financial circumstances.
Chapter 7 bankruptcy is optimal for people who own non-exempt assets that can be seized and liquidated by the court to pay off debts. Chapter 13 bankruptcy is suitable for those who have a sufficient income despite having substantial debt loads. In the latter scenario, the court offers individuals a convenient payment plan that can be carried out over a specific time frame. The court decides on this repayment plan after discussing and negotiating with the creditors regarding issues such as the payment amount and the allotted time period for making this payment.
If you file for bankruptcy, the court is not required to seize all of your assets. The various provisions of the law permit you to retain certain of your assets, such as furniture, apparel, household items, tools, jewelry, insurance, retirement funds, etc.""
" - https://www.affordablecebu.com/
