What is Bankruptcy and Why Should You File For Bankruptcy?
Bankruptcy is a legal proceeding in which individuals or businesses who are not able to pay their debts are required to reorganize their finances. Under bankruptcy laws, certain assets, such as personal property, are protected from creditors. Go here : https://www.scura.com/blog/nj-debtors-bankruptcy-proceedings-following-an-untimely-death
Can filing bankruptcy hurt you?
The first step in filing for bankruptcy is to file a petition with the court. The petition will include details of all the debts that you owe. You will also need to list the property and income you own.
Once the petition has been filed, a trustee will be appointed to handle your assets. The trustee may sell some of your property in order to pay off your creditors. This can be done if you have a mortgage or other secured debt.
If you are considering filing for bankruptcy, you should consult with a financial counselor. They can explain the bankruptcy process to you and provide alternative options for you.
There are two types of bankruptcy: Chapter 7 and Chapter 13. During Chapter 7 bankruptcy, a debtor can keep all his or her personal property and pay off some of their debts. However, the debtor has to pay some of his or her income contributions to the bankruptcy plan.
The trustee can sell a car or other property as a security for the debt. In other instances, the trustee can ask the Official Receiver to garnish the bankrupt’s wages.
A bankruptcy can be a good solution for many people. However, it does not cure every problem.