Make an Informed Choice With Bankruptcy FAQs

December 18, 2009 by  Filed under: Bankruptcy 

Here are some common FAQs often asked by individuals who want to file for bankruptcy. These frequently asked questions help debtors clarify their doubts and make the right decisions regarding bankruptcy.

The most common FAQs are described as follows:

Q: What Is Bankruptcy?
A: It is a legal provision wherein one gets to remove and reorganize their debts to make a new beginning.

Q: Who Can File Bankruptcy?
A: Both individuals and businesses can file a petition with the court of law. Individuals who are neck-deep in debt and have failed to pay back can file for bankruptcy. If you are having grave problem month after month to balance your own living expenses and payment of regular monthly bills, it might just be the only option for you.

Q: How Can I File A Petition?
A: You can file a petition under chapter 7 or chapter 13 of bankruptcy, depending upon whether you want liquidation or repayment plan. One can hire a bankruptcy attorney, or file per se by filling up the required form and submitting it along with the required documents.

Q: How Would It Affect My Job?
A: A large number of jobs like those of army personnel, police, chartered accountants, attorneys, bankers, Members of Parliament, directors of companies etc. may not allow a person to continue after bankruptcy. However for other jobs, it is the employer’s decision and one may still be able to continue working in the same job.

Bankruptcy may have lifted a big burden off your shoulders, but there are a lot of questions which cross the mind after having been declared bankrupt. This is the time, you want to re-establish yourself and pick up the scattered bits of your financial situation. The following FAQs will clarify some of those doubts.

Q: How Is My Credit Record Affected By Bankruptcy?
A: Even before filing, you might not be able to meet your commitments, resulting in faulty payments or no payments at-all. This anyways is ruining your credit record. Bankruptcy does leave a mark on your credit report, but as soon as you start building your credit line, the negative marks starts neutralizing.

Q: Can I Buy A House After Being Declared Bankrupt?
A: You will have to wait for a short period of about two years that is till you are discharged from bankruptcy, to buy a house. After this period, you can apply for a loan and buy a house irrespective of your credit status.

With the help of the answers to the above FAQs, you will be well-versed with the facts regarding bankruptcy. This will help you in making the right choice and be in-charge of your financial situation Once more.

There can be several FAQs concerning bankruptcy, and it becomes important to seek answers to these questions by consulting a personal bankruptcy attorney. This process can help debtors know if there exists any alternative that can help them avoid bankruptcy.

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