Millions of people have trouble paying their mortgage and rent every month. These same people are behind on their credit card and car payments. Not only that, but they have school loans, and additional loans from lenders, that haven’t been paid in months. You yourself probably have had a creditor or two call you requesting that you bring your account current. This can be very stressful to deal with. This is why many people turn to bankruptcy. They know what bankruptcy can do for them. However, it’s important to know all of the facts before taking this drastic step.
The bankruptcy process is a very thorough process. Some may even say it’s down right intrusive. They say this because practically everything about your financial history is uncovered. There will be a trustee appointed by the courts who will see to your case. The trustee will instruct you to provide some very personal information about your financial situation. You’ll be required to reveal all of the debt that you owe and the creditors you owe them to. The courts want to know how many credit cards you have, and the kind of money that’s in your bank account. How much money do you have in your savings account? How much money do you make a month? What are your monthly expenses? These are the types of questions you’re going to have to answer.
The type of bankruptcy you choose will determine what you’re obligated to do. For instance, Chapter 7 bankruptcy will require you to liquidate a portion of your assets in order to cover a portion of the debt that you owe. Chapter 13 bankruptcy doesn’t require you to liquidate assets, but it’ll require you to pay back a portion of your debt in 3-5 years. As you can see, both of these bankruptcy options can eliminate debt, but they do it in very different ways.
These are some of the facts that you need to know. Most people aren’t clear about what bankruptcy will actually do. If you need more information, you should seek consultation from Staunton Bankruptcy Attorneys. An attorney will be able to inform you about the consequences of bankruptcy, and what options would be best for you.