It is really scary to find yourself in financial emergency
, but possibility of bankruptcy can be scarier for people. But as per the experts, bankruptcy is not something to scare about. Bankruptcy information plays important role in order to educate people and eliminate the myths attached with this financial service. Experts found very interesting fact about the people, debtors feel ashamed while asking too many questions about the procedure. And as a result, they dont have courage to enjoy benefits of this financial services provided by government.
It is very important to have correct information of bankruptcy because this financial step can change the life of individual or business forever. The first information about the process is, court never asks individual or business to file bankruptcy. Everybody is free to make the decision. By filing a simple petition debtor informs court that he/she is filing for bankruptcy process. This simple petition form helps court to check the credit history of debtors, also helpful to list the number of creditors and outstanding total debts. People can hire a bankruptcy attorney in order to get complete detail. Many debtors do not hire these professionals because it can make the procedure more costly for them.
Debtors do not need to acquire complete information about the bankruptcy, because it can create more confusion. One biggest misconception about the process is, all possessions or repossessed are taken by the court. Individual should be clear about the situation and results, so that he/she can apply for the bankruptcy chapters accordingly. There are three main chapters under the bankruptcy:
Chapter 7
Chapter 13
Chapter 11
Results can be vary and depend on the chapters completely.