Declaring Bankruptcy Meaning
Declaring or registering for bankruptcy is a signal to creditors and financial institutions that you will be unable to pay your legally incurred debts. The government, however, has passed a law called the ""Bankruptcy Abuse and Consumer Protection Act"" that makes it more difficult for debtors to declare bankruptcy in response to the large number of individuals who have chosen this option. With the passage of this act, bankruptcy filing fees have increased and Chapter 7 bankruptcy has become more difficult. This act has compelled individuals to file for bankruptcy under Chapter 13. Several provisions in this chapter restrict bankruptcy.
The filing of Chapter 13 bankruptcy
Filing under this chapter of bankruptcy signifies that your finances have been acknowledged in some way. This chapter does not prohibit you from paying your debts, but it facilitates the repayment of existing debts in small, manageable chunks. Chapter 13 bankruptcy may result in the sale of some of your assets by creditors and financial institutions.
Cost of Filing for Bankruptcy
For personal bankruptcy, the cost of declaring bankruptcy can reach $1800. This includes attorney fees and filing expenses. However, the charge also depends on your income and the state in which you reside. The entire legal procedure to obtain a declaration of bankruptcy will take approximately six months. Once you have filed for bankruptcy, your creditors are informed of their standing and no longer have the right to pursue you. However, this also means that your credit rates have been obliterated, but you can rebuild them within a few years.""
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