The Bankruptcy Process Explained Bankruptcy is a process to help people get rid of their debt when they are unable to pay. It is not an easy process, but it can be done by following the steps in this blog. A person who files for bankruptcy will have to go through the pre-bankruptcy education requirement because it does not matter how much debt you have, if you are not educated about the bankruptcy procedure then you may just end up with more debt than before. This blog post will help you understand what happens in a bankruptcy and how much debt is required to file for Chapter 7.
The Process of Filing for Bankruptcy
The process of filing for bankruptcy is not an easy one. It is a long and difficult process that many people are afraid to go through. However, it can be the best decision you make if you are experiencing financial problems. The first step in the process is to attend debtor education at either your local court or online. This will help you understand the bankruptcy law, what assets are protected and how bankruptcy works. You will also need to complete credit counseling before filing for bankruptcy, which will include how credit works, debt management skills and budgeting skills.
What Happens After Filing for Bankruptcy?
What Happens After Filing for Bankruptcy? The bankruptcy process is a complicated legal procedure that can be difficult to navigate without the advice of an experienced bankruptcy attorney. Depending on your individual situation, you may qualify for one or more of the following types of relief: Chapter 7, Chapter 11, and Chapter 13. Chapter 7 is the most common form of bankruptcy filed in America today. It wipes out all unsecured debt- credit cards, medical bills, personal loans- leaving only secured debt such as mortgages and car payments intact. If you have any equity in your house or vehicle(s), they are usually sold at auction to pay off your secured debts.