ANSWERS: 1
  • The bankruptcy process is a means to recover from debts and obligations that no longer you can meet. It should be done only as a last resort. The discharge ends the bankruptcy process.

    Filing a Bankruptcy

    To begin a bankruptcy case, you must file a petition for bankruptcy in federal court. The petition will list your assets and your liabilities and demonstrate that you are incapable of meeting your financial obligations.

    The Process

    There are two basic forms of personal bankruptcy. Chapter 7 will end with your assets liquidated, your creditors paid with the realized money and your debts discharged by the court. Chapter 13 will reschedule your debts, allow you to keep your assets and set up a repayment schedule over a specified time, usually five years.

    Bankruptcy Trustees

    In bankruptcy, a trustee is appointed to handle all financial transactions within the bankruptcy. The trustee will manage the outstanding assets and liabilities and consider any claims of creditors, who must file paperwork listing the money that is owed to them and, if they wish, object to the discharge of those debts.

    Hearings

    The bankruptcy hearing is a session for creditors to meet with the trustee, or with a bankruptcy judge, and have their motions and pleas concerning the discharge of debts heard.

    Discharge

    The discharge of bankruptcy brings the case to a close. The debts listed on your bankruptcy filing are legally terminated. You no longer are under any obligation to your former creditors, and you can begin to rebuild your credit.

    Source:

    United States Bankruptcy Courts

    TotalBankruptcy

    BankruptcyAction.com

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