What is insolvency?
It occurs when your liabilities far exceed your assets, and all of your creditors are demanding payment. You will encounter harassment from others and leniency from others. In any case, it is a dire circumstance to be in.
What is the purpose of Chapter 7 Bankruptcy?
This is the protection of which I speak. Even if the sole parent is in default, the law protects his rights as a person. No one is permitted to make him feel inferior due to his debts. Invoking Chapter 7 eliminates degrading phone calls and collection efforts. This is the process of liquidating your assets so that your debts can be paid and you can be at peace for the time being, given your problematic situation. On the creditor's side, they are protected in that they will be repaid in full or in part, contingent on the payment schedule following the liquidation.
Initial Details in Chapter 7 Bankruptcy Filing
A formal petition is necessary to declare bankruptcy. Also required are a Statement of Financial Affairs and schedules detailing your debts and assets, as well as your most recent financial documents.
Include all of your debts, no matter how minor, in the schedules. All creditors must be disclosed with complete information about their nature, including debt amount, type of debt, creditor's address, and contact information. Remember: Do not omit any information. This is a time-intensive requirement for filing Chapter 7 bankruptcy.
List every property you own, along with any associated debt, if any. Additionally, the property's value must be declared. In addition to actual estate, property encompasses anything of value, such as assets and possessions.
After completing the necessary forms, you, as the debtor, must sign the documents or schedules that will be lodged with the local bankruptcy clerk. On the filing date, an automatic stay goes into effect, creating a legal barrier between you and your creditors. They can no longer harass you. A trustee is appointed to facilitate your Chapter 7 bankruptcy filing, and all of your creditors will be notified.
Following this, a meeting of creditors will occur. You will reaffirm your properties and attempt to discharge some of your debts. After approximately four to six months, the case will be resolved and you will be able to pay what you can afford. The existence of you and your creditors endures. Remember that you are not alone, and that the law will be by your side in times of need. Inform yourself of your rights.""
" - https://www.affordablecebu.com/
