With an increase in living standards, most people are trying hard to afford highly priced commodities by taking loans. Consequently, concerns are rising over people declaring that they are bankrupt. When in need of a proficient bankruptcy lawyer Grand Rapids MI, the following tips will guide you on how to proceed.
The good thing about the modern judicial system is that laws meant to oversee bankruptcy cases have been drafted and implemented. As a person who wants to seek pardon from the court regarding your inability to pay a certain debt, there are certain requirements you should meet. Declaring how bankrupt you are in court can be a clever option especially if you are in a financial crisis.
When you declare yourself bankrupt, you have to shed some light to the presiding judge regarding how you lost your money. The court will request you to submit a list of properties you own and any outstanding debts. Your property will then be divided into two classes based on their potential to settle a debt. Exempt assets such as personal items in your home cannot be retrieved in order for a debt to be repaid. On the other hand, non exempt assets such as recreational vehicles can be sold to repay a debt.
The outstanding debts that you have will also be halved based on their potential to be repaid. For secured debts, your creditors can acquire the property that you signed as collateral. The judicial system sensitizes on the need to settle secured debts to avoid losing your assets to creditors. After you complete submitting all your financial information, the judicial system will give you a specific time frame to pay secured dues. Amidst this duration, creditors are barred from filing a case against you.
Another reason why most people get stuck when declaring that they are bankrupt is because they are unaware of the type of chapter that suits their case. According to the liquidation law, you are entitled to choose between chapter seven and chapter thirteen. This depends on the circumstances at hand.
If you choose to proceed with chapter seven, the court will permit you to hold on all exempted assets under your possession. Unsecured debts can also be withdrawn in the process. The non exempt property under your possession will however be converted into cash to clear debts. Note that it is impossible to run away from taxes, school loans and infant support debts. Choose chapter seven especially if you earn low income, possess little assets but owed more debts.
If you choose to proceed with chapter thirteen, the judiciary mandates you to repay loans within a maximum duration of three years. It is also impossible to evade repaying your debtors since a trustee is assigned to you with the responsibility of acquiring the money to be paid as debt from you. The trustee submits the cash to your debtors.
Bankruptcy laws also recommend that you need to consult with a credit counselor six months before declaring yourself bankrupt. You are also mandated to sign up for a money management program before repaying your debts. You should proceed with caution because filing for a chapter seven can hinder your chances of securing a loan or a mortgage in future.
The good thing about the modern judicial system is that laws meant to oversee bankruptcy cases have been drafted and implemented. As a person who wants to seek pardon from the court regarding your inability to pay a certain debt, there are certain requirements you should meet. Declaring how bankrupt you are in court can be a clever option especially if you are in a financial crisis.
When you declare yourself bankrupt, you have to shed some light to the presiding judge regarding how you lost your money. The court will request you to submit a list of properties you own and any outstanding debts. Your property will then be divided into two classes based on their potential to settle a debt. Exempt assets such as personal items in your home cannot be retrieved in order for a debt to be repaid. On the other hand, non exempt assets such as recreational vehicles can be sold to repay a debt.
The outstanding debts that you have will also be halved based on their potential to be repaid. For secured debts, your creditors can acquire the property that you signed as collateral. The judicial system sensitizes on the need to settle secured debts to avoid losing your assets to creditors. After you complete submitting all your financial information, the judicial system will give you a specific time frame to pay secured dues. Amidst this duration, creditors are barred from filing a case against you.
Another reason why most people get stuck when declaring that they are bankrupt is because they are unaware of the type of chapter that suits their case. According to the liquidation law, you are entitled to choose between chapter seven and chapter thirteen. This depends on the circumstances at hand.
If you choose to proceed with chapter seven, the court will permit you to hold on all exempted assets under your possession. Unsecured debts can also be withdrawn in the process. The non exempt property under your possession will however be converted into cash to clear debts. Note that it is impossible to run away from taxes, school loans and infant support debts. Choose chapter seven especially if you earn low income, possess little assets but owed more debts.
If you choose to proceed with chapter thirteen, the judiciary mandates you to repay loans within a maximum duration of three years. It is also impossible to evade repaying your debtors since a trustee is assigned to you with the responsibility of acquiring the money to be paid as debt from you. The trustee submits the cash to your debtors.
Bankruptcy laws also recommend that you need to consult with a credit counselor six months before declaring yourself bankrupt. You are also mandated to sign up for a money management program before repaying your debts. You should proceed with caution because filing for a chapter seven can hinder your chances of securing a loan or a mortgage in future.
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