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What Is Bankruptcy?

What Is Bankruptcy?
"""Bankruptcy is a legal proceeding that discharges debt for individuals or businesses who are unable to pay their debts. Anyone, including individual members of a partnership, can declare bankruptcy, although it should always be a last resort because it remains on your credit report for many years.

There are numerous websites, online resources, businesses, and government agencies that can explain every facet of the bankruptcy procedure. Nonetheless, for convenience, a few essential points are listed below. Before considering bankruptcy for yourself, it is essential to consult with a professional.

Bankruptcy is not applicable to all debts.
Numerous types of debts, including credit card debt, unsecured loans, and medical expenses, can be eliminated through bankruptcy. However, there are numerous debts that cannot be discharged through bankruptcy, including child and spousal support obligations.

How can I declare bankruptcy?
If you wish to declare bankruptcy, you must contact a county court or a specialized company that can assist you with the procedure.

Who will handle my situation?
If you do not file for bankruptcy through a specialized corporation, the secretary of state will appoint a court-appointed official receiver. From the date of the bankruptcy order, the official receiver is responsible for administering your bankruptcy and protecting your assets.

What impact will bankruptcy have on me?
When declaring bankruptcy, you must present a repayment plan outlining how you intend to repay your debts over the following years. The minimum amount you must repay depends on your income, debt, and the amount your unsecured creditors would have received if you had filed for bankruptcy.

" - https://www.affordablecebu.com/
 

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"What Is Bankruptcy?" was written by Mary under the Finance / Wealth category. It has been read 108 times and generated 0 comments. The article was created on and updated on 02 June 2023.
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