FAQ’s And Answers On Bankruptcy

Before answering any of the let us find more about what bankruptcy is. Bankruptcy as per nolo.com is a process which allows people to pay back a part or all of the debt under the protection of bankruptcy court. It is an option for individuals who cannot clear their debts and loans are way over what they can manage. Before declaring bankruptcy, there are many things to consider like do you want to reorganize your debt or want to completely liquidate your property and also whether you want to hire a lawyer or do it yourself. Before you decide, these are some of the questions you need to find answers for which might be a make or break. What are the advantages of declaring bankruptcy? By declaring bankruptcy, it is possible for consumers to prevent possession of mortgaged home and gives an opportunity for customers to repay some of the loans that are missed. It can also stop repossession of a vehicle or any other property attached to the client. It can also stop harassment by collectors of debt and debts can be discharged if your bankruptcy declaration is accepted. When Bankruptcy declaration won’t help? Declaring yourself bankrupt will not absolve you from all the financial mess. It is not a right decision for everyone. If you are declaring bankruptcy and want to be discharged from paying alimony, child support, certain taxes or student loans that do not work. Only certain types of debts like mortgage or automobile loans can be discharged. How many times can I declare bankruptcy? Depending on the type of bankruptcy filed, you can declare bankruptcy. Based on the kind of bankruptcy filed, you can refile. You could submit it after eight years if you had file bankruptcy for inability to clear debts, to do that you will have to give away your non-exempt property. Who should file for bankruptcy? This process is created for people who feel that they are swamped with the financial mess and unable to handle the stress of the accumulated debts What happens to my credit score if I file for bankruptcy? Be reassured, that your credit score is not completely botched. It remains on your credit report for close to 10 years. If you are an employed and salaried person with a regular decent pay, then you can still get credit even after filing for bankruptcy. Credit can be rebuilt even after filing for bankruptcy, and most people can purchase what they want even after bankruptcy. When does an Automatic Stay come into the picture? The automatic stay comes into effect immediately after filing for bankruptcy. It ensures that creditors do not take any action to collect debts from you Will my bankruptcy be made public? Yes, bankruptcy petitions are public records, however, if you do not owe money to your company or anyone else they will not know about you petition Knowing when to file for bankruptcy is very crucial, look for resources that answer your questions before actually making any decision