The Role Of Bankruptcy Courts In Helping Individuals Overcome Debt Crisis
Several factors can lead to a severe debt situation that might be extremely difficult to cope with. Dealing with financial difficulties can be a challenging task, specially if you are not properly aware of the various legal complexities involved in the various debt solutions. Getting advice from a knowledgeable attorney can help in obtaining required information on your legal rights and the most appropriate solution in your circumstances.
Bankruptcy is one of the debt solutions, which is most commonly used to deal with the inability to make debt payments. Bankruptcy is a legal procedure that enables individuals as well as companies to declare their incapability to pay off debts. Bankruptcy courts have categorized bankruptcy into various types in order to help individuals and organizations in different financial situations. For example, personal bankruptcy is a procedure that can be availed only by individuals and not by organizations or companies to deal with debt crisis. Personal bankruptcy is categorized into two types, namely chapter 7 bankruptcy and chapter 13 bankruptcy. While chapter 7 bankruptcy is suitable for individuals having non-exempt assets, which can be taken over by the court for making payments to creditors, chapter 13 bankruptcy is ideal for individuals making a reasonable annual income that can be used to make convenient monthly payments to lenders.
There are several debt solutions other than bankruptcy that can help in dealing with debt situations. An experienced and knowledgeable attorney can help you to decide on the most appropriate option for you. However, in case it turns out that bankruptcy is the most helpful solution for you, it is important to know the various positive aspects of this procedure.
Bankruptcy filing enables you for a new start by clearing all your past financial records. The moment you file for bankruptcy and your petition is accepted by the court, your credit cards and bank accounts are seized by the court, thereby allowing to you make a fresh financial start. Though losing all your past credit records can impact your life in a number of negative ways, nevertheless it can relieve you of the stress involved in a severe debt situation and helping you to make a new beginning.
Bankruptcy filing activates an automatic stay, which can put a pause to the legal proceedings that have been initiated against you by your creditors. The automatic stay is an effective way to protect your mortgaged property against foreclosure either on a temporary basis or permanently. This is probably one of the most significant aspects of bankruptcy filing to help you save your mortgaged from being sold by the lenders.
Bankruptcy filing legally prohibits your creditors from bothering you for money from the very moment you are declared bankrupt by the court. From that moment onwards, your lenders can only make contact with the court for matters related to debt payments.
Though it is believed that bankruptcy filing takes away all your valuable assets, the truth is, bankruptcy courts have made provisions that can prevent individuals from losing control over many of their properties like jewelry, clothing, furniture, vehicles that are not expensive, pension funds, insurances and sometimes also your home.
It is advisable to consult an experienced attorney to obtain thorough information regarding bankruptcy filing.
Bankruptcy is one of the debt solutions, which is most commonly used to deal with the inability to make debt payments. Bankruptcy is a legal procedure that enables individuals as well as companies to declare their incapability to pay off debts. Bankruptcy courts have categorized bankruptcy into various types in order to help individuals and organizations in different financial situations. For example, personal bankruptcy is a procedure that can be availed only by individuals and not by organizations or companies to deal with debt crisis. Personal bankruptcy is categorized into two types, namely chapter 7 bankruptcy and chapter 13 bankruptcy. While chapter 7 bankruptcy is suitable for individuals having non-exempt assets, which can be taken over by the court for making payments to creditors, chapter 13 bankruptcy is ideal for individuals making a reasonable annual income that can be used to make convenient monthly payments to lenders.
There are several debt solutions other than bankruptcy that can help in dealing with debt situations. An experienced and knowledgeable attorney can help you to decide on the most appropriate option for you. However, in case it turns out that bankruptcy is the most helpful solution for you, it is important to know the various positive aspects of this procedure.
Bankruptcy filing enables you for a new start by clearing all your past financial records. The moment you file for bankruptcy and your petition is accepted by the court, your credit cards and bank accounts are seized by the court, thereby allowing to you make a fresh financial start. Though losing all your past credit records can impact your life in a number of negative ways, nevertheless it can relieve you of the stress involved in a severe debt situation and helping you to make a new beginning.
Bankruptcy filing activates an automatic stay, which can put a pause to the legal proceedings that have been initiated against you by your creditors. The automatic stay is an effective way to protect your mortgaged property against foreclosure either on a temporary basis or permanently. This is probably one of the most significant aspects of bankruptcy filing to help you save your mortgaged from being sold by the lenders.
Bankruptcy filing legally prohibits your creditors from bothering you for money from the very moment you are declared bankrupt by the court. From that moment onwards, your lenders can only make contact with the court for matters related to debt payments.
Though it is believed that bankruptcy filing takes away all your valuable assets, the truth is, bankruptcy courts have made provisions that can prevent individuals from losing control over many of their properties like jewelry, clothing, furniture, vehicles that are not expensive, pension funds, insurances and sometimes also your home.
It is advisable to consult an experienced attorney to obtain thorough information regarding bankruptcy filing.