Whether you are an individual or an organization, if you know that the debts you owe are far more than the means and assets available to you and you may not be able to pay the debts, one of the last options that you have is to file for a bankruptcy petition. However, it is not recommended to consider filing bankruptcy as an easy option to get rid of the burdensome debts. You should keep in mind that bankruptcy usually has far reaching financially negative impacts and it may eventually make the financial path a hard cake for you. You may have to struggle hard to put your finances back on track with substantially damaged credit ratings. In most cases, it will keep your financial life highly disturbed for the next ten years at least. This way, we can say that bankruptcy is an option to go for when no other alternative options are feasible for you.
A Brief Insight Into Bankruptcy And Filing Bankruptcy
Bankruptcy is a legal term that declares that the person or organization declared bankrupt is unable to pay the debts they owe to their various creditors. However, it is not necessary that all the debts will be included in the bankruptcy discharge. It depends on the way the case has been debated by the debtor and his creditors in the bankruptcy court. The debtor filing for bankruptcy will be responsible to pay off any debts that the court decides to exclude from the bankruptcy discharge.
Is Filing Bankruptcy Right For You?
Filing bankruptcy is considered by many as a great way to get debt relief. However, it is important for you to understand that filing bankruptcy is not an option but the last thing that you are forced to do. Nobody likes to file for bankruptcy just because they wanted to. When an individual or business lose control over their finances don’t have the available means and assets to pay off the debt, do they start thinking about filing bankruptcy. This is done so that the debts of the creditors could be paid off and they could get the much desired debt relief and the eventual peace of mind. This article must not be treated as a legal advice, but the following information will help you understand your financial situation better, so that you could decide whether filing bankruptcy in the current situation is the right thing for you.
Bankruptcy FAQ
1. What is “filing bankruptcy”?
Filing bankruptcy is a legal process that is used by a debtor in an effort to obtain relief from the debts they owe to their various creditors. The various steps involved in filing bankruptcy include gathering complete facts and records regarding the debts you owe and other financial matters, hiring a bankruptcy attorney, filing various bankruptcy forms as asked by your bankruptcy lawyer based on the type of bankruptcy you are claiming.
Delaware Bankruptcy Laws
There is only one District bankruptcy court in Delaware and that is located in Wilmington. Following are some of the important points in the Delaware bankruptcy laws that differentiate them from the laws in other states.
•
Connecticut Bankruptcy Laws
The Connecticut bankruptcy laws are a bit different from the bankruptcy laws of other states of America and the main difference lies in the exemption of properties. There are three bankruptcy district courts in Connecticut that handle all types of bankruptcy cases for the permanent residents of the state. These three courts are located in Bridgeport, Hartford, and New Haven.