Bankruptcy law allows a debtor, who is unable to pay his
creditors, to resolve his debts through the division of
his assets among his creditors. Bankruptcy is a proceeding
in a federal court in which an insolvent debtor's assets
are liquidated and the debtor is relieved of further liability.
Bankruptcy is public record and will be reflected on your
credit report. Filing bankruptcy also stays with you for
up to 10 years and you will have difficulty getting any
type of loan.
Bankruptcy can cost you thousands in legal fees. Before
considering bankruptcy one needs to fully understand the
process and the laws surrounding bankruptcy.
The most significant changes in the new bankruptcy laws
is to force people into chapter 13 bankruptcy, instead
of chapter 7 bankruptcy. Chapter 7 deals with liquidation,
while Chapter 13 deals with reorganization.
There are other alternatives to bankruptcy and you can
avoid bankruptcy with the help of financial expert. One
of the option can be debt settlement of Debt Management.
Request Free Advice