There are so many people who are actually wondering what bankruptcy is all about. If you are among these numerous individuals, then reading the entire content will let you gain further information about bankruptcy. I would be talking on some of the Frequently Asked Questions about such matter in the following paragraphs.

 

Question number 1: What is bankruptcy - basically, this is the commonest question that people are asking in bankruptcy. Due to the reason that there are lots of myths that are revolving around bankruptcy, it has caused big number of people to be confused on the process for filing such. To make things simpler, a person that is legally declaring that she or he is no longer capable of paying the money he/she owe through legal proceedings is what bankruptcy is about. This grants consumers a fresh start while getting an opportunity of repaying its creditors.

 

Question number 2: Are there any advantages of filing for a bankruptcy - by filing for a bankruptcy, it gives people the chance to catch up with their late payments and thus, avoid foreclosure of their home. It can even help in preventing repossession of vehicle, property or any other asset that the person has. In addition to that, bankruptcy could potentially stop harassment and wage garnishment by debt collectors and even provide discharge of debts. By filing a bankruptcy, all these things can be experienced. For more info about bankruptcy, visit http://en.wikipedia.org/wiki/Bankruptcy.

 

Question number 3: What bankruptcy won't do for me - this is yet another common question asked in bankruptcy and it is vital to understand that bankruptcy is not the answer to your financial dilemmas. Not everyone can file for a bankruptcy as their last resort because you have to know that filing such will not be able to eliminate some types of debts especially the secured ones. Secured types of debt for instance include car loans and mortgages. Apart from that, special treatment debts such as child support, alimony, criminal fines, certain taxes and certain student loans will not be discharge by filing a bankruptcy.

 

Question number 4: Who are the ideal candidates for filing a bankruptcy - if you feel that you are overwhelmed with financial problems, then you may be a good candidate for filing a bankruptcy.

 

Question number 5: Will my credit score would be affected if I file for a bankruptcy - your credit won't be ruined if you have decided to file for a bankruptcy. However, it will remain on your credit report for the span of 10 years. But, if you have regular and decent income, you would soon discover that you could receive credit even after you file for bankruptcy. Please follow the link if you have further questions.