What You Should Know About Bankruptcy

Not all debts can be solved through bankruptcy. It is crucial to consider both the upsides and the downsides of filing bankruptcy. 

Repossession, foreclosure, eviction, and wage garnishment will be halted until the case is settled. The downside is that it won’t get rid of your mortgage, car loan, or tax debts right away.

You will need to sign up for credit counseling before you file bankruptcy. You will also need to decide which type of bankruptcy is best for you.

There’s Chapter 7, known as liquidation. It takes less time and is more straightforward. There’s also Chapter 13, for when you’ve fallen behind on car or house payments and want to catch up and still keep all of your property.

You will need to fill in two forms: Statement of affairs and debtors bankruptcy petition.

When you take your own bankruptcy petition and statement of affairs to the court, you will need to pay three fees, a court fee, a deposit, and a fee due to a solicitor.

The bankruptcy period can last up to one year or more. You will definitely want to work with an attorney and/or a CPA throughout the process. 

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