Bankruptcy can be a painful and stressful step in life. Filing for bankruptcy can take several months, even years to complete. Bankruptcy usually occurs after a personal bankruptcy examination where a bankruptcy attorney will review your financial records and determine if bankruptcy is right for you. Bankruptcy can also be initiated by a creditor who has suffered a significant loss and has been unable to collect on a loan. After reviewing your financial records and determining that bankruptcy is the best solution, a bankruptcy court hearing will ensue, said FloridaBankruptcyAttorneys.Net.
Chapter Seven bankruptcy is one of the most popular forms of bankruptcy. Chapter Seven bankruptcy allows the individual debtor to declare themselves insolvent and liquidate their assets. Bankruptcy proceedings stop once all creditors receive the declaration from the court. Once a bankruptcy has been filed, the court will determine if a discharge may be granted. If a discharge is granted, the individual debtor will become personally liable for the remaining balance of their debt to all creditors.
Bankruptcy can be a lengthy process for many different reasons. First, the bankruptcy process is much more complicated and lengthy when an individual has a large amount of assets. As an example, a real estate company could take years to recover millions of dollars in back taxes and other damages. A small business might take as long as two years to recover tens of thousands of dollars in losses from malpractice issues. As a result, it can be difficult to get through the bankruptcy process and stay informed about important deadlines.
When you file for bankruptcy, you will be granted a temporary restraining order until the bankruptcy hearings begin. In most cases, the procedure takes between six months and one year. At this point, a bankruptcy administrator will review the case. After the administrator makes his or her recommendation, you will hear arguments and counter-arguments from both parties. You will be able to review the arguments in private, but your bankruptcy lawyer will still advise you on important issues. You will have the opportunity to ask your bankruptcy attorney many questions regarding the merits of your case.
After the hearing, the bankruptcy court will issue a final order that describes the exact steps the organization must take to discharge its debts and remove your name as its trustee. Once the order is issued, the court will notify all debtors of the discharge date. At this point, your debtors are legally obligated to pay any monies determined in the discharge order. Some debtors might choose to settle their accounts while others attempt to pursue an expedited debt release. However, if no settlement can be reached, the case will go to collection. This is when collection agencies become involved.
You will be provided notice of your discharge by your bankruptcy attorney. If your application for relief was denied in chapter 7, you may submit additional documents to the court to increase the chances of your discharge. If your discharge is approved, you can resume managing your personal affairs as normal.