Fundamentals of Bankruptcy
Unpaid bills or debt accumulation are the common reason for property repossession. It also leads to the threat of wage garnishment. Those situations force many individuals to consider a bankruptcy filing. This may be the ideal thing to do so you must understand at least the fundamentals of bankruptcy. Knowing how filing bankruptcy riverside works will help you a lot how the process goes and if you need the assistance of bankruptcy lawyer.
Be sure to educate yourself about the facts in bankruptcy. It will be a great help when making serious decisions which will surely influence your life after bankruptcy.
How Bankruptcy Works?
Bankruptcy is simply for a person who is unable to meet his financial obligation or pay his bills. He can ask for legal protection from his creditors. When a bankruptcy is filed, the collection activity will be postponed and the borrower can breathe from his payment responsibilities. Paying his debts can be temporarily or permanently stopped depending on what petition is filed. Some debts are eliminated, or a repayment plan can be arranged so the debtor can repay each of his creditors while staying under the bankruptcy protection.
The moment that a bankruptcy is filed, the debtor will obtain the automatic stay which set forth by the law. It prohibits the creditors of the debt collectors from initiating or continuing the collection of the outstanding debts. It also prevents any lawsuits or other proceedings such as garnishments or foreclosures. On the other hand, the creditors can contest this conclusion or ask the judge to lift the stay. Creditors are commonly allowed to take over the particular asset if a loan is secured.
Bankruptcy filing includes a legal proceeding where an individual should prove that he cannot pay his debts at all. It means the person is bankrupt. The decision will end up discharging the debts of the borrower. In discharge or dismissal, it clears the borrower of all his debt liability and stops the creditors from debt collection that is listed down in the bankruptcy filing. Creditors are also prevented from making claims on the debtor’s future earnings.
For legal assistance, you can reach a bankruptcy lawyer riverside through email or phone number provided on their website or print ads.