People declare themselves bankrupt to get rid of overwhelming debts. It is viewed as the last resort probably due to the shame and stigma from the society. Among the challenges faced by people thinking to declare themselves bankrupt is misinformation. There is a lot of false information online and from friends about bankruptcy. This article will outline some facts for people considering bankruptcy. If you have been looking for the right information about bankruptcy, read on.
Bankruptcy Lasts Three Years
Well, this is true, but you can have bankruptcy spreading to 5 or 8 years. This mostly happens if your trustee does not give the required information about you in the first three years. There are many reasons why your bankruptcy can extend and among them is not filling some required papers in the period of bankruptcy.
I Will Lose My Assets When I File Bankruptcy
Yes, some of your assets will be lost, but you might not lose your house furniture and general household items. You might lose your house if it has plenty of equity, you might lose your car as well if it has a value of more than $7700. If you are self-employed with a business, it might be viewed as an asset and end up losing it. If you are not sure about this, it is best if you seek advice concerning the same.
My Business Will Be Lost After Filing Bankruptcy
A bankruptcy trustee is out to sell your assets and give out the money to your creditors. When it comes to business, its value matters. For instance, if a plumber files bankruptcy, he will not lose his tools and equipment if they do not total to $7700. In such a case, the real asset will be the plumber. If it were a company, the director would be required to resign and trade as a sole trader before declaring bankruptcy. My main point here is, it is not a must that you will lose your business after filing bankruptcy.
I Will Lose My Job When I File Bankruptcy
There are a few professions you can do while bankrupt. The restriction of employment applies more to people who are not yet in the field compared to those already in. For instance, you cannot become police after you are declared bankrupt. But if you were already police and your bankruptcy was not from fraud or illegal activities, then bankruptcy will not affect you.…