How bankruptcy works

why bankruptcy is good
How bankruptcy works

The idea of bankruptcy has been around for a very long time. The basic idea of how bankruptcy works has been around as long as history itself you can even read about the concept of bankruptcy in the Bible.  So its not surprising that millions of Americans file for bankruptcy protection every year.  This idea that debts should be forgiven every 6-8 years has been around for a long time and the founders of this country thought it so important that they put it into the constitution.  Basically society says it is not fair to make people work for the rest of their lives for debts they will never be able to pay back and makes them ineffective in society. Therefore there is a legal way to get rid of these debts so that people don’t end up working to pay mass amounts of debts off for the rest of their lives.

When you file for a bankruptcy you are essentially telling the court that you are an honest person that things happened and it was impossible to keep up.  You are also saying they you don’t have things to sell to creditors to pay those debts off, and can’t afford to deal with this debt anymore.

There are several different types of bankruptcies depending on if it is personal or for a business, but most readers will only need a Chapter 7 bankruptcy or a Chapter 13 bankruptcy.   In most cases the hard part is making the decision to file, gathering the correct information to be able to file, and getting the required credit counseling.  Using an experience legal team can help make these challenges easy.  You will need documents such as tax returns, pay stubs, social security card, drivers license, credit release form, etc. After filing you will also need to give the trustee these copies of tax returns, paystubs, or any other documents that the court may need.  Your ultimate goal is to receive a discharge of your debts. Creditors can object if they feel that your case is dishonest in any way but objections are generally rare.

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