There are a lot of questions that people have when it comes to bankruptcy and to add to that there is fear and embarrassment. However here at Mitchell Reed Sussman & Associates we would like to remind you that we are here to help all our clients and not harm them in any way.
There are a few things that client needs to keep in mind when they are contemplating bankruptcy, and one of those things is understanding that filing for bankruptcy is the solution to all their worries.
How it works is simple, it's not that the bank will take away everything that you own, it's about the fact that the bank will put a stay on everything that you own, which protects you as a creditor. This is essential for the simple reason that your debtors would not have the right to confiscate any of the property and assets that you own.
These are some of the facts that surround the circumstances of bankruptcy and the laws that are in place are designed to provide people with protection. Whether people are applying under chapter 7 or chapter 13, the basic aim of the court is to protect people and the assets that they have from being seized by creditors. In addition to this it also protects people from legal action initiated by creditors.
One of the biggest problems that creditors who are applying for bankruptcy face is the fact that most of them are not upfront about the assets that they possess. As explained the assets that one possesses would be safeguarded with a stay on them if the person discloses them.
In addition to this if the person who files for bankruptcy gets a job or something similar, and their income drastically improves they can apply for an amendment of the bankruptcy that they originally applied for.
There are no rules which state that a person who has filed for bankruptcy cannot choose to purchase a car or some other expensive item. The only fact is that they need to keep the court in the loop about the changes so that their further purchases are taken into consideration, as well.
Also it is possible that the court would ask you to repay a certain amount of the debts that you have based on your improved income, however nothing is done in an unreasonable fashion, and this is why it is best to consult with Mitchell Reed Sussman & Associates about this.