Bankruptcy and what it stands for

| November 17, 2011 | 0 Comments
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When you hear about filing for bankruptcy, what readily comes to your mind? When you file for bankruptcy, it allows you, whether a man or woman, in extreme financial difficulties the privilege of wiping his or her slate clean as far as debt cancellation and a new start is concerned. Not only that, it also gives the creditor the opportunity to retrieve most of the money being owed him by the debtor. There are several reasons that might lead you to file for bankruptcy and this includes but not limited to lawsuits, divorce, unemployment, foreclosures etc.

When you form the habit of accumulating debts without making arrangements or taking positive steps towards paying off such, you may face the option of filing for bankruptcy. A lot of people though misunderstand this financial term, they fail to understand what it really stands for and the implications when you are forced by circumstances to file for bankruptcy. If you are among this class of people who know little or nothing about bankruptcy, then you are sure to benefit from reading more of this content and believe me, it would make you take a positive step today.

It might interest you to know that we have two types of bankruptcy which are the Chapter 7 bankruptcy and Chapter 13 bankruptcy. In filing for bankruptcy, Chapter 7 allows your unsecured debt to be taken care of however, you may lose most of your property. Chapter 13 on the other hand is designed for you, a regular incomer earner who desire to pay back his or her debts but lacks the resources to do so effectively. Under the Chapter 13, you are given the opportunity to pay back under close supervision through the court, ensuring that the payment is made within the period slated for it.

Now that you know this, it would also be worth while to remind you never to take the issue of filing for bankruptcy as something that is not serious. It is not an opportunity for you to get your debts cancelled while you continue on your spending spree. No, it will be confirmed by the appropriate authority that in every way, you may not be able to pay back your debts before your bankruptcy application is granted. In all, the need to file for bankruptcy should always come as a last resort when every other option have been exhausted towards paying your debts.

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Category: Blog, Remove Bankruptcies

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