Explore Bankruptcy Law

December 24, 2009 by  Filed under: Bankruptcy 

Many people will take loans form the banks and some of them may fail to repay their debts. And in such cases the bankruptcy laws helps the people for clearing their debts. Generally the debts of the individual are because of the personal loans that are taken or because of the taxes or home loans or student loans. Even the bankruptcy law comes into view by the legal judgments and also by the medical bills. Generally, the bankruptcy depends on the debts that the person wants to get relief from and the loan that was taken by the person.

In general there are two types of bankruptcy. This is a process in which the person’s debts can be forgiven legally. One can file the bankruptcy because of the unemployment, illness or divorce, etc… and they can apply for the bankruptcy.

When a person applies for bankruptcy, then a trustee will be appointed by the court and he has to sell the assets of the individual who took loan and then the trustee is responsible for clearing the loan by the money, which he will get by selling the assets of the person who has taken the loan. If the money the trustee gets is more than the required amount that has to be paid to the debt, the remaining money will be given to the person.

Filing for bankruptcy is also possible without having attorney assistance. You can have this by “Pro Se”. For filing for bankruptcy you have to file the correct papers and also you have to show the facts about your property, if there is any incorrect papers in the filing process (because of the property you shown in the paper), then there may be a chance to lose your property. And also you may be punished for the incorrect statements that you have shown while filing to bankruptcy.

Hence, be careful while filing to bankruptcy under bankruptcy law and always give the perfect statements showing your property details. Do not try to deceive the court.

Get all the information about bankruptcy law.

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