Bankruptcy
Welcome to e-Bankruptcy.net, the website which provides all the related information about bankruptcy. We have tried to collect all the related information about bankruptcy and credit counseling with its help.
What is Bankruptcy?
Bankruptcy can be defined as the legal declaration to the government and to creditors that you are no longer able to make your payments to your creditors as you have agreed to under the terms and conditions of your loans or credit card terms. This is usually caused by an overextension of debt accompanied with a limited cash flow.
Bankruptcy can be filed by individuals, couples and or business organizations. There are different requirements for each of those groups to be eligible to file.
How a Bankruptcy Proceeding works?
Bankruptcy can be a very stressful and difficult process to go through. It can cause you to lose items or assets that were yours prior to the bankruptcy. In some cases your debt will not be completely eliminated as your creditors may be able to file petitions to try and get you to liquidate some of your assets to help pay off your debts.
Customarily, the individual who has over extended themselves will have to file with their local bankruptcy court to begin bankruptcy proceedings. In certain circumstances, creditors can file a petition or involuntary bankruptcy to try and recover some of their past due monies. Although this is a rare case it does happen from time to time depending on the circumstances.
The bankruptcy process usually takes approximately 4-6 months to complete the proceedings. During this time you will possibly only need to be in court for 1 session.
When you file for bankruptcy you will need to provide the court with certain information regarding your financial status. Most of the courts require you to divulge information regarding your assets, your income, your spouse’s income if any, your current debts and other financial questions.
When you go to court for the first time you will have to face a representative of your creditors that will be acting in their best interest. They will try to attempt to recover as much as they can from you in an attempt to settle the debt amicably. The court judge will decide precedence and will inform you of your rights. It would be a good idea though to bring adequate legal representation.
Who is eligible?
Currently there are a number of different countries that have bankruptcy proceedings. Here is a short list of those countries which allow filing for bankruptcy although under different rules depending on the country itself. The countries that currently allow bankruptcy to be files is: Australia, Canada, the Netherlands, most countries within the European Union, United Kingdom, the United States and Switzerland.
Each country has different laws regarding bankruptcy so it would be wise to check your options out with your resident country.
Most countries will not allow you to file more than once within a certain time period. This time period for a bankruptcy filing usually falls within 6-8 years. If you have recently filed for bankruptcy within this time frame you will not be able to file again until that time period has elapsed.
Disclaimer: This website provides general information about bankruptcy and in no means should be taken as an official advice. Please consult your lawyer before acting on any of this information.