Archive for May, 2009

Tips on How to File Bankruptcy
Bankruptcy is a legal option that individuals and business operators run to whenever their debts seemed to pile very high and that their current standing resources are not enough to cover for all the payment and make the company stay afloat This is definitely the surest thing to occur especially among entrepreneurs who are still starting with their business and whose starting capital was just loaned from a lending company So when does one declare it and how to file bankruptcy? . .Bankruptcy is a process that gives debtors who can no longer pay their debts due to limited monetary resource with two options: elimination of their debts or creation of payment plan, which they will have to pay their debts in parts or whole over a period It will however appear on ones credit report for 10 years . .However not all credits can be discharged once bankruptcy is filed for loans like student loans, government loans, back taxes and other loans can’t be emancipated Filing can be done individually though it is advised that one seek help of a lawyer so that every step is taken with proper guidance Here are steps taken for how to file bankruptcy: . . 1 Start filing by deciding first which bankruptcy option fits: chapter 7 or 13 Chapter 7 is also known as straight or liquidation bankruptcy while 13 is the repayment plan for individuals . 2 Choose whether to have a lawyer or not If you choose to have a lawyer work together with you, then make sure that you directly have contact with him or her This is to ensure that you can go over and discuss your case anytime . 3 Fees for filing vary and you should know those . 4 Refer creditors to your lawyer’s office No creditors should be hanging around or contacting you in whatever way once the “automatic stay” takes effect Violation of which can result to charges against your creditors . 5 Wait and attend meeting with creditors Your lawyer will send you updates on this . 6 After 60 days from the first meeting that you with the creditors, you should expect a notification of discharge else a lawsuit is filed before this day Should there be no lawsuit, a discharge notification on a debt will be sent to you and that will free you from any form of payment of that debt .
Source: www.rsstnx.com

Disadvantages of Filing For Bankruptcy
There are so many people faced with bankruptcy every year Filing for insolvency is normally an advantage to them since they are given a discharge, meaning that their responsibility towards the creditors ceases Filing a financial distress petition however comes with its own disadvantages . .One of the major disadvantages that comes along with it is the guilt carried by the debtor Not many people are able to hold their heads up after they have gone to court voluntarily or otherwise for not being in a position to pay off debts Another disadvantage is that not many lenders may be in a position to lend to the debtor any more money After bankruptcy has been filed, there are some conditions that must be fulfilled for one to be granted their wish . .One of these is that one must hand in their financial statements to prove that indeed they are not in a position to pay off their debts Debtors are also required to go through credit counseling before and after they have filed for financial distress Many people wonder if they can pay off their debts after bankruptcy The good news is that it is possible for a willing debtor to pay off their debts if they are in a position to do that after their financial distress . .It is however important to note that, it is not compulsory or mandatory to pay the pending debts if a discharge has been offered by a court A discharge releases the debtor of any responsibility towards the debt The debtor will only pay the debts voluntarily without being forced or intimidated to do so .
Source: www.rsstnx.com