What Happens When You Declare Bankruptcy?
What Happens When You Declare Bankruptcy? Typically, bankruptcy is a last resort financial option for people who are facing serious problems paying their bills. However, there are a few things to keep in mind before you file a bankruptcy petition. Often, a lawyer will be able to help you determine whether filing a bankruptcy is the right decision for you. A credit counselor can also be very helpful. When you file for bankruptcy , you will have to prepare a petition that lists your assets and debts. You must also include any information about your income and expenses. You will be required to make a plan for repaying your debts. This will detail how much of your future income will be used to pay your creditors. This plan will need to be approved by a court. It may be modified if your situation changes. When you file for bankruptcy, you are no longer allowed to pursue collection action against your creditors. This can stop mortgage foreclosure, car repossession, eviction, and ...