Public education on proper bankruptcy solutions may not stop an impending bankruptcy from happening. But if it is indeed bound to happen, it should help cushion you up from such an impending difficult financial situation. Even when you have a solid debt management or financial management structures in place, in spite of them being there they may not be good enough to stop or keep it from happening and you may just spiral down to bankruptcy. But what is bankruptcy, in its real form? As far as everybody is concerned, the general notion of many people about it is that it is something dreadful, something to be feared or an impending financial gloom is about to happen. What can we expect from bankruptcy?
There was a point in time some decades ago that filing for bankruptcy was considered as the most effective and legal way to ease you out of your financial woes but at the expense of your creditors. However, in 2005, after the Bankruptcy Abuse and Consumer Protection Act was implemented and was in full force since then, the volume of private individuals and business entities that are filing for bankruptcy significantly went down. The problem that experts are seeing here is that the new act has set a standard that is too high to achieve, and for that reason alone only too few now would be able to qualify and file for what a bankruptcy relief could provide them.
The current legislation defines that there are two classifications for bankruptcies. There are two processes that differ from each other to a great extent. Chapter 7 bankruptcies cater to the most extreme of financial situations where the person is rendered completely incapacitated to make any kind of repayments for his debts. And thus, the only direction he has for himself is to really start over again, start fresh and anew. With this type of bankruptcy, debts can be written off or a percentage of the outstanding debts from creditors can be canceled off by virtue of putting on sale some of the debtor’s valuable and high priced assets like his home, car, or real property. At the other end of the rope, things are completely the other way around with Chapter 13. In here, there is no selling of debtor’s high-value asset or property is involved. What happens instead is that the debtor and his creditors, with the help of the proper court, would try to find new arrangement or come up with a newer setup for making repayments. Whatever arrangement that the parties would arrive in, it would have to be economically viable, affordable, and feasible for both.
Can You File Bankruptcy on Your Own?
This is the usual argument of anyone who is not in the know. Of course, you can process things on your own and try to file bankruptcy if you really need to. However, you are missing a lot if you will decide to do things on a DIY approach as opposed to having a Licensed Insolvency Trustee take charge of that on your behalf. Enlisting the help of a Licensed Insolvency Trustee may put you on a more advantageous position and save you from a gamut of unnecessary hassles along the way and sometimes, if you are indeed lucky enough, may even help you save some good amount of money. One reason why it is recommended that you have a Licensed Insolvency Trustee help you out on this aspect is that they know all the technicalities that are involved here and, thus, eventually giving us greater financial ease.
Furthermore, this regulation necessitates that you need to secure first and complete a credit counseling program prior to getting your bankruptcy application approved. Therefore, you’d be informed and get yourself educated first of your upcoming situation and perhaps would be able to see the other possibilities that can happen and all those will help you see clearly whether what you will indeed need legal assistance or if bankruptcy is the only option left for you. In any case, it is highly suggested that you make an effort to reach out to an attorney if you are unsure of what course of action you will need to take.
A foreclosure is a High-Risk Option (Make Sure You are Protected)
It is of paramount importance to understand really that failure from your part to keep up with your mortgage dues may eventually catch up on you and put your property in peril of being foreclosed. Foreclosure is something every homeowner dreads to happen to their property. A homeowner who knows that he is running the risk of not being able to settle his upcoming mortgages in the coming months needs to know in advance what options are available to him, in any case, that things regarding his financial situation turn sour. If you feel in any way that your lender is intimidating you on your mortgage dues or you have received a notification for possible property foreclosure, or if you are under the impression that something bad is brewing up because your lender is not so adamant in recovering his investment, then know for certain that these are good indications that you need to reach out to a distinguished legal practitioner so you can seek some advice regarding various bankruptcy solutions.
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