The decision to file for bankruptcy is a hard one for anyone who feels as if they are being overwhelmed by their debts. In order to make it, it is first necessary to understand the process of bankruptcy.
The bankruptcy process starts by having a lawyer file for bankruptcy. The lawyer will list all of your assets and debts that you want included in the filing. This list is then handed over to a bankruptcy trustee, usually a judge, who will decide how to administer the bankruptcy. This individual will usually follow the guidelines of the law to pay off some of the debts, settle others, and complete discharge others.
Bankruptcy laws vary from state to state, so it is important to consult with a bankruptcy attorney to learn how the laws could apply to your specific situation. For example, in some cases filing for bankruptcy will allow a person to completely erase their debts without having to sell any of their assets, such as their home or jewelry. In other cases, the trustee may decide that according to the law, it is necessary to sell these items, but the debts that the consumer has can still be completely erased. In other situations, the trustee may decide to put the debtor on to a payment plan to pay off all or a portion of his or her debts.
Of course, the course of action that the trustee takes is usually set in law. State bankruptcy laws usually spell out how many assets a debtor can be left with after the bankruptcy process is finished, and what types of debt can be charged off. A bankruptcy attorney can explain your options to you, as well as the most likely way that the trustee will interpret the law.
A lawyer can also explain the consequences of filing for bankruptcy. Unlike in years past, many people find that they are able to get a credit card, car loan, and even a mortgage within a few months or years of going through a bankruptcy. While qualifying for these financial tools might be harder, it is also possible to get back on your feet and regain the life you had.