July 29th, 2009 | by admin |
Peter Gitundu asked:
Bankruptcy is a situation in which an individual who is unable to pay his debts goes to court and files a petition. Depending on the financial position of the debtor, the court can decide on the best chapter for the individual to file the case. There are mainly two chapters under which individuals can file a petition; the liquidation chapter and the wage-earner chapter.
There are several things that the debtor should expect once the bankruptcy court has accepted the petition. The debtor must be willing to share with the court officials and his lawyers how he got himself in this situation. This means, recounting every detail of the debtors current financial position. The debtor should as such be ready for questions from these people and be ready with appropriate answers.
The debtor should also expect to lose all their credit cards unless they have fully paid for them. It also becomes hard for the debtor to find loans to pay for mortgages and other loans to acquire essentials such as automobiles. In case they get lenders willing to lend them some money, they will have to pay huge amounts in interest rates which could also escalate with time. During the bankruptcy period, the debtor is expected to continue making other monthly payments such as students loans and alimony.
Financial distress is a stressing period for an individual. It is wise for one to look at other possible ways of coming out of it before taking it as the only option that they have. Consult financial experts on other options that could be available and then weigh them to see what is best for you.
Fill This Out For Free Bankruptcy Evaluation!
Bankruptcy is a situation in which an individual who is unable to pay his debts goes to court and files a petition. Depending on the financial position of the debtor, the court can decide on the best chapter for the individual to file the case. There are mainly two chapters under which individuals can file a petition; the liquidation chapter and the wage-earner chapter.
There are several things that the debtor should expect once the bankruptcy court has accepted the petition. The debtor must be willing to share with the court officials and his lawyers how he got himself in this situation. This means, recounting every detail of the debtors current financial position. The debtor should as such be ready for questions from these people and be ready with appropriate answers.
The debtor should also expect to lose all their credit cards unless they have fully paid for them. It also becomes hard for the debtor to find loans to pay for mortgages and other loans to acquire essentials such as automobiles. In case they get lenders willing to lend them some money, they will have to pay huge amounts in interest rates which could also escalate with time. During the bankruptcy period, the debtor is expected to continue making other monthly payments such as students loans and alimony.
Financial distress is a stressing period for an individual. It is wise for one to look at other possible ways of coming out of it before taking it as the only option that they have. Consult financial experts on other options that could be available and then weigh them to see what is best for you.
Fill This Out For Free Bankruptcy Evaluation!
Tags: Bankruptcy Court, Loans, Money, Petition, Wage Earner
