The process of filing bankruptcy
Bankruptcy, a court based procedure gives one the opportunity to start afresh financially, although it leads to the loss of self esteem. Federal laws introduced with effect from the 17th of October 2005 have made filing for bankruptcy more stringent.
A set of procedures are involved throughout the proceedings from start to the end. All the financial documents should be placed in order including the list of the income
-
- Pay stubs
- Contract payments if any
- Interest payments
- Annuity payments
- Settlements if any
- Tax refunds
There can be other source of income as well for the customer which includes personal property with its value like
–
- Cash
- Savings if any
- Any type of deposits
- Special value collectibles
- Clothing
- Jewelers
- Insurance policy, stocks, shares, bonds
- Real property
- Tools of trade
- Other than things of value there are other non exhaustible things as well which includes
Credit cards - Spouse and child support
- Mortgages
- Utilities and rent
Filing of Petition-Petition is a formal document which should contain all the necessary information including the schedules and papers required for the particular type of bankruptcy that has been applied for. At the time of filing petition the debtor has to pay the fees as well.
Meeting the creditors-After a month or so there will be a hearing that will be presided over by the US bankruptcy trustee. A brief conversation takes place between the trustee and the debtor regarding income, property, debts. In this meeting the creditors can also raise questions!
Discharge-In normal cases, discharge is done after about 60 days from the time of petition. A bankruptcy attorney represents the debtor in such situations. Once discharge order is entered, bankruptcy will be complete and the case closed.
Conclusion-Personal bankruptcy can be of great help to people who are in financial crisis, but one should also be aware of the legal proceedings as well as the fees that would be incurred throughout the process.
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