Many people believed that bankruptcy would mean the end of one’s financial life.
There are lots misconceptions about bankruptcy because not everyone is informed about the entire process and how it really goes.
For people who don’t seem to have options but to file for bankruptcy, they feel hopeless and believed that there is not chance to rebuild their post bankruptcy credit.
It may seem the end of your current financial standing but it could also mean the beginning of a new life.
Bankruptcy would begin as soon as you file for it.
Therefore, the first even would be to file your petition for bankruptcy.
The petition is a document that contains all necessary data related to your financial standing.
It usually includes the monthly income, your assets such as cars, real estates, credit cards, personal loans, mortgage, and other relevant data.
When you file for bankruptcy, you need to make sure that your petition contains all the needed information because it will be the basis for you to be discharged from your debts.
In any bankruptcy case, the petition is the most important document.
If you want to require the services of an attorney, you might need to spend more money to pay for the services; hence, if you lack funds, it would be best to file the petition on your own.
You only need to do your own research to know the process and the things that you should do.
After you have filed your petition, you will be required to attend credit counseling.
Credit counseling sessions will help you to rebuild your post bankruptcy credit so that you can start anew.
Credit counseling will help you to manage your budget accordingly and use your money wisely.
There are many agencies offering such services so you have to be sure that the agency that you will choose is approved by the government.
When you have filed your bankruptcy, it doesn’t mean that you are already free from your debts.
The court will still need to check the validity of the data that you have in your petition.
Hence, there will be a meeting of creditors.
In this event, all of the lenders listed in your petition will be requested to meet to discuss any discrepancies in your petition.
However, creditors usually don’t show up in such meetings.
As soon as the meeting of lenders was done and all the assets have been liquidated and those who have attended the meetings came up with an agreement, the court will make its decision.
The ruling of the court is the final event in the process of bankruptcy.
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The decision of the court will determine the end of the process of bankruptcy and whether it will end favorable for you or not.
If the ruling is based on Chapter 7 bankruptcy, it would mean that you will be discharged from your debts and in Chapter 13 bankruptcy, you will be freed from your debts depending on the repayment plan agreed.
Rebuilding your post bankruptcy credit is still possible but make sure that you don’t commit the same mistakes again and suffer financially.