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What Filing for Bankruptcy Means

What Filing for Bankruptcy Means
"""Everyone has heard the term """"filing for bankruptcy"""" in relation to businesses or even personal bankruptcy, but what does it mean and to whom can a person turn for bankruptcy aid and assistance? Most individuals who have struggled with their finances have pondered whether this option is right for them and, if so, what effect it will have on their future credit, finances, and current assets. Individuals who are considering registering for bankruptcy may benefit from having some bankruptcy-related advice and knowledge.

To be eligible to file for bankruptcy, an individual or couple must have more unsecured debt than income, causing them to fall behind on their payments or struggle greatly to do so. This can cause families and individuals undue tension and harm their health. When a debtor files for bankruptcy, creditors can no longer contact and harass them about their debts or continue to add fees on top of fees to an already substantial debt.

If a bankruptcy petition is authorized, the debts are discharged. However, the individual who has filed for bankruptcy may lose certain assets, such as high-value cars or houses, or property with substantial equity. Therefore, bankruptcy should be viewed as a last-ditch effort to help struggling families and individuals escape a mountain of debt. Approval of a petition for bankruptcy prohibits an individual from obtaining any line of credit for at least a year, and possibly longer depending on the individual circumstances.

Anyone considering filing for bankruptcy should obtain professional counsel. Typically, firms provide a free initial consultation to determine whether filing for bankruptcy is the best option compared to other debt relief options. A professional bankruptcy expert can help to ensure that the bankruptcy proceeds smoothly and that all necessary paperwork is in order for the bankruptcy proceedings, and may also be able to assist with dealing with creditors who attempt to contact the debtor after the bankruptcy has been completed. A bankruptcy expert can also help ensure that the individual's decision to file for bankruptcy is the correct one and provide assistance and advice if it is not a viable option.

In some areas, those holding prominent positions such as police officers, attorneys, or those in leadership or management are ineligible for bankruptcy if they are unable or unwilling to resign. These individuals have access to additional debt relief options, so they should contact a debt relief professional. Getting the assistance they need to resolve their debts or being given more time to do so can provide them with a great deal of mental relief, allowing them to continue to perform at the highest level in their chosen career or position.

Depending on the circumstances and local regulations, an individual can only file for bankruptcy once every specified number of years. Any individual who has filed for bankruptcy must exercise extreme caution to avoid incurring additional debt after their debts have been completely or partially discharged, depending on the option they have chosen. Bankruptcy assistance is a means to assist with a current struggle or to alleviate current financial burdens; it should not be viewed as a method to eliminate all debt every few years. ""Because many creditors and employers view bankruptcy as a determining factor in whether to lend or hire someone in the future, great care must be taken to ensure that bankruptcy is the best solution for each individual's debt.""

" - https://www.affordablecebu.com/
 

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"What Filing for Bankruptcy Means" was written by Mary under the Finance / Wealth category. It has been read 126 times and generated 0 comments. The article was created on and updated on 31 May 2023.
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