I don't know about you but I hate it when I have questions that go unanswered. This is especially frustrating when you are in dire situation and you need to seek for answers to your problems.
Well if you have answers regarding bankruptcy, you have come to the right place because in this article I am going to have answers to frequently asked questions about bankruptcy.
So, read on and you will find out more about bankruptcy. Bankruptcy has many negative effects on you personally but if you know more you may be able to turn the negative situation around. So, here are the questions:
1) What is bankruptcy and how does this happen?
Bankruptcy is a legally declared inability or impairment of ability of an individual or organizations to pay their creditors. This will happen when the lender file a petition to bankrupt the borrow in an attempt to get back some money that they are owed. In majority of cases, however, bankruptcy is initiated by the debtor.
2) What are the effects of bankruptcy?
Once you are made a bankrupt, all assets belonging to you come under control of the Trustee, including your home. The other main disadvantages of bankruptcy are the constraints forced upon the bankrupt and the stigma of having to declare oneself as a bankrupt for certain transactions.
3) How long does bankruptcy last?
A bankrupt may be discharged after a year. However, discharge is not necessarily be automatic and can be postponed by the court. On top of that, the discharge may not free a person from liabilities. It also does not mean that your unrealized assets can be protected.
4) Are there alternatives to bankruptcy?
Basically, there are four main ways in which you can avoid bankruptcy. They are:
- Take no action
- Self money management
- Negotiate with creditors
- Debt consolidation
5) Are there any other options in which I can settle debts?
If you need other options, you can consider:
- Selling your assets
- Working more
- Reorganizing your debts
- Getting help from a bankruptcy attorney
6) What is a bankruptcy attorney?
A bankruptcy attorney specializes in bankruptcy law and provides legal methods for an individual or commercial enterprise or business to either wipe out debts by liquidating assets and distributing them among creditors or resolve them by developing a court-approved reorganization plan, or other plan involving the repayment of creditors over time.
There you have it. All your questions answered. Now you should be more confident in handling your debts and you should know how to avoid or deal with bankruptcy. So you don't have to worry about having your questions not answered.
