Bankruptcy is a legal procedure that helps people who can’t pay their debts. In general, bankruptcy does not eliminate all debt, but it can be a solution for many people. If you’re considering filing for bankruptcy, it’s important to learn more about the process.
Is bankruptcy a good way to start over?
A bankruptcy trustee is appointed by the court to oversee the sale of assets to pay off your debts. This may include your home. However, if you have enough equity in your home to keep it, the bankruptcy trustee may not take possession of it.
Before filing for bankruptcy, you must prepare a petition, which lists all of your debts. You must also provide a list of all your assets and income. Find out : https://www.scura.com/blog/nj-assignment-for-the-benefit-of-creditors-or-business-bankruptcy
After you’ve prepared a bankruptcy petition, you must attend a creditors’ meeting. The meetings generally last five minutes. During the meeting, the bankruptcy trustee will ask you questions about your assets.
If you are eligible, you will be given a debt repayment plan that details the amount of money you will need to deposit with the bankruptcy trustee. Your repayment plan will be confirmed by the bankruptcy court. It can be modified if your financial situation changes.
After you’ve confirmed a repayment plan, you can begin making payments. Generally, the plan must be continued for three or five years. Some of your debts, such as child support and recent taxes, will not be discharged.
For more information about the bankruptcy process, contact an unbiased credit professional. Many free financial counsellors are available in every state and territory.