Unsurprisingly, there are a lot of usually asked bankruptcy questions.
Unfortunately, this is in all likelihood not shocking as bankruptcy is one of the most difficult situations anyone can face.
Bankruptcy should invariably be the absolute last resort and only be pursued if you are crippled with large debts, incessantly receiving call after call from creditors , and you are determined to find a way out.
Before starting the bankruptcy process and the complexities of the paperwork, you need to ask yourself a couple of questions that are raised often and which you are going to need to have the answers to.
Who Will Find Out I Am Bankrupt? To a greater extent than any other, this specific question is one of the most commonly asked of bankruptcy questions.
You need to know exactly who needs to know about your situation once you have filed for bankruptcy.
You might be preparing to apply for a different job in the not-too-distant future or you may wish to apply for a loan.
You will want to know what data people have the ability to get and if they can determine you have filed for bankruptcy.
If you have a number of large clear and free assets, a letter will be sent to every one of your creditors informing them of your intention to file for bankruptcy.
Do not worry about this; this letter will put a stop to the phone calls chasing you for money.
When you file for bankruptcy, this data is made public permitting anybody access to it if they wish to see it.
Which Assets Can I Keep? Another standard bankruptcy question you might want to ask is which of your assets you are permitted to keep.
The great news is that you will no doubt be permitted to retain a lot of your assets and possesssions.
However, you must bear in mind that you do owe money and that some of your assets will be utilized to handle the money that you owe to your debt holders.
When you file for bankruptcy, a note of your assets will be made.
Any assets which belong to you at the time of bankruptcy will be considered.
If those assets have a resale value bigger than the amount you owe on the assets (removing any exemptions), they will be turned over to your bankruptcy trustee and utilized to handle your debt.
This means that much of the hard work will be done for you and you can be assured that the payments to your debt holders will be handled efficiently.
What Happens To My Earnings? If you are working a job when you file for bankruptcy, any wages you earn will be paid to you directly.
However, this is just for the present time until you have bills that need to be paid.
These are only a few of the bankruptcy questions that are asked.
It is worth spending some time to learn as much as you can about bankruptcy so that you can be positive it is the correct option for your situation.