Home » Articles » Finance / Wealth

Understanding Bankruptcy Petitions

Understanding Bankruptcy Petitions
"What is the meaning of bankruptcy petition? This petition is where a debtor asks the court to declare himself insolvent. In other terms, it is part of the bankruptcy process. If the court grants the petition, your assets will be liquidated and the proceeds will be distributed equally to all of your creditors. Prior to filing a bankruptcy petition, it is advisable to obtain legal counsel to avoid further complications. How do you file for bankruptcy and what is the procedure? These are the most frequently asked queries regarding bankruptcy petitions.

This petition can be filed through the court. There is a required filing fee for the application. If you are unable to pay the fees in full, negotiate with the court to pay them in installments. Typically, you can do so because you are already financially precarious. During the application process, a summary of schedules and statistical summary is required. Some software that can automatically summarize your schedules can simply accomplish this.

Before filing for bankruptcy, you are required to participate in credit counseling provided by the court. On average, this session will last one and a half hours. It is essential so that the petition can be filed without further doubt.

Once they grant you permission to file the petition, you will be required to appear in court to enumerate all of your creditors. You will be required to identify your assets alongside your name and recent financial statements.

If your income falls below the financial statement's median, you are not permitted to file for Chapter 13 bankruptcy. In Chapter 13 bankruptcy, you do not have to liquidate your assets, but you must pay your creditors according to a predetermined plan. The court will then schedule a meeting at which you must validate the list of debts in your name. This procedure calls for an oath in the presence of creditors and trustees.""

" - https://www.affordablecebu.com/

Please support us in writing articles like this by sharing this post

Share this post to your Facebook, Twitter, Blog, or any social media site. In this way, we will be motivated to write articles you like.

--- NOTICE ---
If you want to use this article or any of the content of this website, please credit our website (www.affordablecebu.com) and mention the source link (URL) of the content, images, videos or other media of our website.

"Understanding Bankruptcy Petitions" was written by Mary under the Finance / Wealth category. It has been read 102 times and generated 0 comments. The article was created on and updated on 03 June 2023.
Total comments : 0