As a result of the negative conditions associated with bankruptcy, many people avoid it like the pestilence. They only contemplate it as a last resort because they find it extremely intimidating.
The first stage in declaring bankruptcy is to hire a bankruptcy attorney. The attorney will not only be able to represent you, but will also be able to guide you through the process, give you advice, and explain the pros and cons of filing for bankruptcy. They will be able to explain not only how your property will be affected, but also how your credit will be affected as a consequence.
Chapter 7 and Chapter 13 are the two most common bankruptcy filings for the ordinary person. They vary widely based on the debtor's financial condition and the length of time it will take for them to become debt-free after receiving their judgment.
People typically seek to file Chapter 13 whenever feasible. This will assist them in establishing a repayment plan that will see them debt-free within five years. It will also secure their assets, allowing them to retain all or the majority of their property.
If at all feasible, the majority of individuals will want to avoid filing for Chapter 7 bankruptcy. In order to pay off your debts, Chapter 7 requires you to liquidate almost all of your assets. Typically, this is done when there are insufficient funds to repay creditors. After the property has been liquidated and the funds have been distributed to creditors, the remaining debts are likely to be discharged.
Once a bankruptcy petition has been filed, the courts will grant a stay. The Stay will legally compel all creditors and debt collectors to cease all debt collection efforts. They will be prohibited from making even a phone call and cannot pursue any litigation they may have filed. Many people fear bankruptcy because they are aware of the stigma that accompanies it, but it may be the best option for you to get out of debt.
" - https://www.affordablecebu.com/