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Bankruptcy Cheat Sheet

5 Feb

Declaring bankruptcy will not be a simple process. In fact, it is very complex and there are different types of bankruptcy.

This article gives a quick summary of what bankruptcy is, it’s purpose and the different types of bankruptcy.

Understanding Bankruptcy

bankruptcy cheat sheetThe general concept of bankruptcy is simple. It is a process that was created for those with too much debt.

Bankruptcy exists to help those with overwhelming debt start over.  Bankruptcy cancels the debt and/or allows the debtor to pay the amount that they can to a creditor.

When filing for bankruptcy, all pursuits from creditors must stop by order of the court.

A creditor can no longer take any action against the person that files for bankruptcy.  This includes not only phone calls and letters but also includes the lack of ability to take any further legal action against the debtor. Continue reading