Bankruptcy is not something anyone would wish for in their lifetime. When you are declared bankrupt, the consequences will soon follow, and it can be a scary experience. Being in a state of bankruptcy makes a person incapable of accessing credit facilities. Unfortunately, it may sometimes be the only option for dealing with a debt problem. Therefore, it is in your best interest to get bankruptcy advice online from a professional.
Whether you get advice online or offline, any adviser will tell you that there are various chapters that you may want to consider. For instance, if you are an individual, you may qualify for either the chapter 7 or 13. These two options are meant for consumers who are in different financial situations. An adviser will tell you everything you need to know about these two options. You will also be informed about the pros and cons of each option.
Being bankrupt has some advantages. For instance, it will stop creditors from harassing you. Bankruptcies also help debtors get peace of mind because any communication from creditors will be halted. This option effectively gives debtors immunity from any legal action that financial institutions and collection agencies may want to take. If used wisely, bankruptcies can give consumers a fresh lease of life.
For anyone who has huge amounts of debts, Chapter 7 may be the most suitable option. What happens is that a trustee auctions property belonging to the debtor. The money recovered is used to offset the outstanding debt. Chapter 7 is normally used by debtors who do not have reliable income source, but have valuable assets.
Chapter 13 is very convenient since there is no auctioning of property. Usually, debtors are required to come up with an acceptable payment plan to offset the debt. To qualify for Chapter 13, the debtor needs to have a reliable source of income. When financial institutions want to repossess or foreclose on property, this chapter will effectively put a stop to their actions. The drawback of this option is that liquidation of assets will take place the moment the debtor fails to honor his or her obligations as indicated on the payment plan.
A good adviser should outline all the benefits and drawbacks of seeking this option. He or she should be able to inform the client that some debts can never be written off. These include spousal support payments, student loans an child maintenance payments. Another important point that must be stressed by the adviser is that the bankruptcy entry will feature in the credit report of the debtor for a period of seven years. A competent adviser should help the debtor to weigh all the advantages as well as disadvantages and help the debtor to make the right decision.
For a debtor to get legal protection, the right petition must be filed in court. Since most people know little about legal matters, professional assistance should be sought. A petition preparer, or an experienced attorney, can offer this assistance either online or offline.
Bankruptcy is available to every taxpayer, whether individual or institutional. Since this debt settlement option is often abused, trustees are usually required to put the finances of every petitioner under the microscope to ensure that they truly deserve to get legal protection. This will also help in determining whether or not the petitioner has petitioned the court for the right chapter.
Whether you get advice online or offline, any adviser will tell you that there are various chapters that you may want to consider. For instance, if you are an individual, you may qualify for either the chapter 7 or 13. These two options are meant for consumers who are in different financial situations. An adviser will tell you everything you need to know about these two options. You will also be informed about the pros and cons of each option.
Being bankrupt has some advantages. For instance, it will stop creditors from harassing you. Bankruptcies also help debtors get peace of mind because any communication from creditors will be halted. This option effectively gives debtors immunity from any legal action that financial institutions and collection agencies may want to take. If used wisely, bankruptcies can give consumers a fresh lease of life.
For anyone who has huge amounts of debts, Chapter 7 may be the most suitable option. What happens is that a trustee auctions property belonging to the debtor. The money recovered is used to offset the outstanding debt. Chapter 7 is normally used by debtors who do not have reliable income source, but have valuable assets.
Chapter 13 is very convenient since there is no auctioning of property. Usually, debtors are required to come up with an acceptable payment plan to offset the debt. To qualify for Chapter 13, the debtor needs to have a reliable source of income. When financial institutions want to repossess or foreclose on property, this chapter will effectively put a stop to their actions. The drawback of this option is that liquidation of assets will take place the moment the debtor fails to honor his or her obligations as indicated on the payment plan.
A good adviser should outline all the benefits and drawbacks of seeking this option. He or she should be able to inform the client that some debts can never be written off. These include spousal support payments, student loans an child maintenance payments. Another important point that must be stressed by the adviser is that the bankruptcy entry will feature in the credit report of the debtor for a period of seven years. A competent adviser should help the debtor to weigh all the advantages as well as disadvantages and help the debtor to make the right decision.
For a debtor to get legal protection, the right petition must be filed in court. Since most people know little about legal matters, professional assistance should be sought. A petition preparer, or an experienced attorney, can offer this assistance either online or offline.
Bankruptcy is available to every taxpayer, whether individual or institutional. Since this debt settlement option is often abused, trustees are usually required to put the finances of every petitioner under the microscope to ensure that they truly deserve to get legal protection. This will also help in determining whether or not the petitioner has petitioned the court for the right chapter.
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