Most people live their lives with debt, which is not bad. When the amount of debt accumulated by a single person becomes unsustainable, however, they may start experiencing financial problems. If the income earned by the debtor is not enough to service those debts, the only option might be to renegotiate the debt or declare bankruptcy. Chapter 7 Oakland residents should know, is the default type of bankruptcy. Read on to learn more.
The first thing the court will do after receiving the bankruptcy petition is to appoint a trustee to handle the case. The trustee will be responsible for liquidating the assets belonging to the debtor. They will also be tasked with forwarding the proceeds of the sale to creditors. Taxes and court fees will also be covered by the proceeds.
If you do not have a considerable income or a large estate, this option is perfect for you. This is because you have little to lose and your income may not be enough to qualify you for other bankruptcy options. Once the bankruptcy process is over, you will be free to start life afresh, and free of debt.
There are many consequences of becoming bankrupt. First and foremost, the credit rating of the debtor will suffer a big blow. This means that accessing low interest loans will become nearly impossible. Secondly, neighbors, colleagues and friends will learn about their situation, which is not the most ideal situation.
The bankruptcy entry on a credit report usually stays in place for several years. If you apply for a job or submit an application for tenancy in a rental unit, your application may be rejected once the property manager or potential employer learns about your bankruptcy.
Some people often make the mistake of assuming that bankruptcy is automatic. That once you file the required paperwork, the court will simply declare them bankrupt. The truth is that the court will consider numerous factors key among them being the income and total assets of the debtor. If they do not qualify for liquidation, the trustee may recommend debt reorganization.
One important thing that consumers should know when filing for bankruptcy under this option is that both individual consumers and businesses can qualify. It is commonly referred to as the default form of bankruptcy. If the debtor defaults on chapters 11 or 13, this option will come into effect automatically.
While bankruptcy has some serious consequences, it also has some major benefits for the debtor. The first is peace of mind. After all, their debts will be forgiven after paying a few pennies for every dollar they owe. Secondly, any debt that is not settled will be written off. This means you can become debt free without paying even half of your outstanding debts. Thirdly, the bankruptcy proceedings effectively stops creditors from adding penalties and more interest to your debt. This means your debt will not continue to mushroom any further.
The first thing the court will do after receiving the bankruptcy petition is to appoint a trustee to handle the case. The trustee will be responsible for liquidating the assets belonging to the debtor. They will also be tasked with forwarding the proceeds of the sale to creditors. Taxes and court fees will also be covered by the proceeds.
If you do not have a considerable income or a large estate, this option is perfect for you. This is because you have little to lose and your income may not be enough to qualify you for other bankruptcy options. Once the bankruptcy process is over, you will be free to start life afresh, and free of debt.
There are many consequences of becoming bankrupt. First and foremost, the credit rating of the debtor will suffer a big blow. This means that accessing low interest loans will become nearly impossible. Secondly, neighbors, colleagues and friends will learn about their situation, which is not the most ideal situation.
The bankruptcy entry on a credit report usually stays in place for several years. If you apply for a job or submit an application for tenancy in a rental unit, your application may be rejected once the property manager or potential employer learns about your bankruptcy.
Some people often make the mistake of assuming that bankruptcy is automatic. That once you file the required paperwork, the court will simply declare them bankrupt. The truth is that the court will consider numerous factors key among them being the income and total assets of the debtor. If they do not qualify for liquidation, the trustee may recommend debt reorganization.
One important thing that consumers should know when filing for bankruptcy under this option is that both individual consumers and businesses can qualify. It is commonly referred to as the default form of bankruptcy. If the debtor defaults on chapters 11 or 13, this option will come into effect automatically.
While bankruptcy has some serious consequences, it also has some major benefits for the debtor. The first is peace of mind. After all, their debts will be forgiven after paying a few pennies for every dollar they owe. Secondly, any debt that is not settled will be written off. This means you can become debt free without paying even half of your outstanding debts. Thirdly, the bankruptcy proceedings effectively stops creditors from adding penalties and more interest to your debt. This means your debt will not continue to mushroom any further.
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