| It is common for people to make mistakes and end up | | | | their recommendation the category and type of |
| losing their jobs or many times people take more loans | | | | bankruptcy application is entertained. |
| when their credibility is high and spend all the money | | | | Provisions of bankruptcy rules are contained in several |
| only to find that their income has stopped and they | | | | chapters with most common cases falling between |
| have run into huge debt trap. This is where the | | | | Chapter 7 to 13 and businesses come under Chapter |
| government laws come to help. | | | | 11. You application would be admitted under a specific |
| You can declare yourself bankrupt under the | | | | chapter and only after this is determined will the further |
| provisions of the Federal Law and thereby get legal | | | | paperwork and process start. |
| relief from having to pay and clear your liabilities. Even | | | | The provisions contained in different chapters describe |
| organizations can file for bankruptcy. If this sounds | | | | the conditions and terms applicable for different cases |
| simple, in reality it is not so. | | | | of bankruptcy which may not be clear to the common |
| Until recently the laws were very simple and allowed | | | | man, unless and until interpreted or guided by the |
| you to declare bankruptcy when you did not have an | | | | lawyers who specialize in bankruptcy. Whatever be |
| income or a job but had significant debt outstanding, | | | | the chapter, you can not hope to get a hundred |
| which could not be serviced. The government then | | | | percent waiver and discharge of all your debts. |
| could right off all outstanding from you and give your | | | | End of the process you would be asked to pay up a |
| relief from debt. After a couple years you could once | | | | part of the debt outstanding and draw up a extended |
| again start your own business or take up a job and | | | | payment schedule to be able to make payments in |
| resume normal life. | | | | future. With a bankruptcy record you are not a safe |
| As expected, many people started using the law | | | | investment for banks and credit card companies. |
| available to declare themselves bankrupt and evade | | | | Hence they will not be willing to give you unsecured |
| paying the banks and loan outstanding until finally the | | | | loans and your credit worthiness will be zero. |
| Rule had to be amended by the Government and | | | | So filing for bankruptcy is not an easy task and the |
| ensure that only genuine cases could be admitted for | | | | story doesn't end with claiming relief from debt. Unless |
| legal relief under bankruptcy. Since then things have | | | | otherwise there is no other option, you should not file |
| been working differently. | | | | for bankruptcy and make things difficult for self. If you |
| Inspection and detailed assessment of the personal | | | | have no other go, then do file for it and make a new |
| assets and liabilities is carried out by an independent | | | | beginning. |
| team when an individual files for bankruptcy. Based on | | | | |