Personal banking is the process of legally announcing that individuals are able to pay their debts. In many cases, bankruptcy may not be your only choice for dealing with financial difficulties. Consult an experienced attorney to help you understand your rights and available options. However, if it is the only option available, it is important to maintain a positive attitude. Although all traditional negation is related to the concept of bankruptcy, it is important to know that it involves several positive aspects:
- Although bankruptcy can seriously affect your credit history, once the entire process is completed, all your past credit history will be cleared and you will have a chance to start over.
- Once your personal bankruptcy application is accepted by the court and your bankruptcy status is confirmed, the creditor has a legal obligation to stop calling you directly. In order to immediately alleviate the harassment caused by the lender, this may be one of the most positive parts of the bankruptcy application.
- If you want and need it, nothing prevents you from applying for personal bankruptcy multiple times. However, in some forms of bankruptcy, it is necessary to maintain a certain period of time between applications. For example, although Chapter 13 bankruptcy can be submitted according to your needs, it will take eight years between the two successful applications for bankruptcy in Chapter 7.
- If you apply for personal bankruptcy, you may not lose all your assets. Instead, there are provisions in the insolvency law that allow you to retain certain valuable assets and gain the advantage of a simple repayment plan based on your convenience and requirements.
If you decide to apply for personal bankruptcy, it is important to choose between Chapter 7 bankruptcy and Chapter 13 bankruptcy. Similarly, knowledgeable attorneys can greatly help you make the right choices in terms of financials, convenience and needs.
Chapter 7 bankruptcy is ideal for individuals with non-exempt assets and can be liquidated by the court to repay the debt. However, it is understood that only 5% of people choose to hold any non-exempt assets in Chapter 7 bankruptcy.
On the other hand, Chapter 13 bankruptcy applies to people who have a fixed annual income despite the financial crisis. These people can negotiate a lender to develop a simple repayment plan, which usually also reduces the amount of debt to be paid. Then, the debtor can repay the credit amount in a fixed amount of time, which is actually very helpful to them.
Experienced, knowledgeable attorneys are your best source of information about your personal bankruptcy, its strengths and weaknesses, and the right information for your right choice. It is important to understand your legal rights, responsibilities and choices before you decide on a bankruptcy application.
Orignal From: What are the positive factors involved in personal bankruptcy applications?
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