Declare Bankruptcy
8 months ago
I took a personal loan and used credit cards a few years ago to cover medical expenses for my parents. Now, I find myself in a situation where I can't afford to pay the loan EMI and credit card bills. My current salary is 40k, and my family's expenses are 30k, leaving me with only 10k per month. However, my total monthly debt, which I've calculated, amounts to 1.5 lakhs. I don't own any property to sell, and I'm living in a rented house. Can I declare bankruptcy? And if yes, would I still need to repay the debt, or would my debts be discarded after declaring bankruptcy?
A.Dear Client,
Bankruptcy law exists to help people who have taken on an unmanageable amount of debt, often as a result of large medical bills or other unexpected expenses. But it isn’t a simple process and it has negative consequences for your long-term finances. Before filing for bankruptcy, explore all your alternatives and be prepared for the negative consequences. If you decide that bankruptcy is your only viable option, remember that your credit will take a hit for many years. Bankruptcy can wipe out many types of debt, but not all forms of debt qualify to be discharged. Bankruptcy typically discharges credit card debt. However, before filing for bankruptcy with credit card debt, talk to your creditors. They may be willing to negotiate another amount for you to pay to avoid the loss of all the debt. In the prevailing situation, you may consider consultation with a reputable credit counselor to explain all your options for repayment before you file for bankruptcy petition before a Court. You will have to list the details of all your creditors and the amounts due to them and state that you are to be declared insolvent by the Court. The court follows regular procedures involving giving of evidence by parties etc. before determining if you are to be declared bankrupt/insolvent or not. So, reach out to an Advocate for guidance and steps.
Bankruptcy law exists to help people who have taken on an unmanageable amount of debt, often as a result of large medical bills or other unexpected expenses. But it isn’t a simple process and it has negative consequences for your long-term finances. Before filing for bankruptcy, explore all your alternatives and be prepared for the negative consequences. If you decide that bankruptcy is your only viable option, remember that your credit will take a hit for many years. Bankruptcy can wipe out many types of debt, but not all forms of debt qualify to be discharged. Bankruptcy typically discharges credit card debt. However, before filing for bankruptcy with credit card debt, talk to your creditors. They may be willing to negotiate another amount for you to pay to avoid the loss of all the debt. In the prevailing situation, you may consider consultation with a reputable credit counselor to explain all your options for repayment before you file for bankruptcy petition before a Court. You will have to list the details of all your creditors and the amounts due to them and state that you are to be declared insolvent by the Court. The court follows regular procedures involving giving of evidence by parties etc. before determining if you are to be declared bankrupt/insolvent or not. So, reach out to an Advocate for guidance and steps.
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A.Dear client,
When you are bankrupt: You must provide details of your debts, income and assets to your trustee. Your trustee notifies your creditors that you're bankrupt - this prevents most creditors from contacting you about your debt. Your trustee can sell certain assets to help pay your debts.
When you are bankrupt: You must provide details of your debts, income and assets to your trustee. Your trustee notifies your creditors that you're bankrupt - this prevents most creditors from contacting you about your debt. Your trustee can sell certain assets to help pay your debts.
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