Process And Procedures For Filing Bankruptcy

In the past decade there have been two times as many applications for bankruptcy than in the previous decade. That means either the economy has left many people no option or it is quickly becoming a trend where it was once considered taboo. Many homeowners have lost their job and have been unable to make payments on credit cards and other bills. It can help you start fresh or leave you lying in the wake of disaster.

Those finding it necessary to file an application can do so two ways; Chapter 7 and Chapter 13. One is a new beginning for most while the other is used for reorganizing debts that have gotten out of hand. Each provides protection to filers who are suffering and both offer advantages and disadvantages that you should be aware of as well as the process involved.

Some of the advantages include a complete discharge of your debts if you choose or you can reorganize some of them. It can stop collection calls, foreclosure on your home or stop repossession of your car or force the creditor to return it after repossession. It can prevent your utilities from being disconnected and even get your license back due to court fees not being paid but not if they were taken due to DUI.

The disadvantages that are associated with this process are that securities on mortgages or vehicles cannot be eliminated. No form of divorce, alimony, restitution or taxes will be discharged either. You are still responsible for paying your delinquent taxes and student loans too and co-signers are still responsible for your loans.

There are a few things that must be prepared before your attorney files the paperwork for liquidation. You will be given a form so you can list all real and personal property that you own. Your attorney will help you estimate their value and present it to the court trustee. In the event your belongings are more than what is allowed, they will be sold and the money distributed to your creditors.

You will be required to appear one time in court to answer some questions by the trustee. This is where your creditors can appear as well and attempt to prevent you from filing on them. It usually always goes in favor of the filer though and creditors cannot be abusive during the process so there should be no worries about appearing.

The entire process usually takes between two and six months to complete. You will be issued a copy of the final papers that should be kept in a safe but handy location. If a creditor attempts to collect on a debt that was discharged you can make a copy of it and submit it to them.

You should be aware that a Bankruptcy Brampton stays on your credit record for ten years. It does not mean that during this time you cannot get credit, it only means that lenders can see it for this length of time. You should consult an attorney before filing any type of liquidation of assets.

If you have been searching far and wide for Bankruptcy Toronto alternatives that fit your particular lifestyle and situation, then a visit to Killen Landau & Assoiciates is a must.

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