Bankruptcy and debt can seem to be two things that belong together, but they aren't exactly the same thing. If you are currently facing financial problems, chances are you have heard the term "bankruptcy" at least once. But what does it mean? And where can you go for help? Bankruptcy and debt are two terms that are commonly used, but they aren't exactly the same thing. In this article, we'll take a look at what bankruptcy is, why it's used, and how you can use it to your benefit.
Bankruptcy and debt are two things that are often used interchangeably, but they are not the same thing. Bankruptcy is a procedure through which individuals or other entities that cannot pay debts to creditors can seek relief from either a federal court or a state court. In most states, bankruptcy is enforced by a judge order, usually initiated by the non-immune, non-stockholder, non-applicant person who has filed the bankruptcy petition. Once approved, a bankruptcy order puts the financial institution that issued the loan in the position of having to either sell the debt itself, find another means to collect it from the delinquent party, or negotiate with the person to settle the debt.
Chapter 13 bankruptcy is sometimes used as a means of declaring bankruptcy. Chapter 13 bankruptcy allows for a quick and certain repayment of debts, though it may also result in having assets liquidated in order to satisfy the debt payments. This is the preferred method of filing for personal bankruptcy in most states. Most people file for chapter 13 bankruptcy protection with the assistance of a qualified bankruptcy attorney.
There are two ways in which chapter 13 bankruptcy protects the lender in the event that the individual or his/her estate does not have the means to pay the debt payments. The lender in this case is protected from the debtor's bankruptcy during the initial six months following the filing. The second protection that chapter 13 provides for the lender relates to the remainder of the debt. This means that if the consumer is able to pay off the entire amount, the bankruptcy case will be dismissed.
Many individuals believe that the filing of a petition for bankruptcy is the end of the story in terms of debt relief. However, many lenders require that the consumer engage in some type of debt settlement prior to the issuance of the bankruptcy petition. As a matter of fact, it is possible to engage in both debt settlement and bankruptcy proceedings. The most popular method of doing so is through a credit counseling service.
A credit counseling service assists the individual or family in making a budget and payment arrangements. These arrangements are aimed at assisting the consumer in repaying debts in a shorter period of time. Once the required financial obligations have been fulfilled, the creditors are allowed to resume collection activities. This would include repossession, legal action, or a debt settlement plan settlement. By engaging in such arrangements, the consumer is able to prevent creditors from proceeding with actions which could result in a temporary or permanent loss of the goods owned. Visit this website for more details: https://foxmiles.ca/debt-solutions/consumer-proposal/
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