What Does It Mean To Declare Bankruptcy?
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Whether you work in finance or not, unless you live in the woods, you are likely to deal with financial misunderstandings and issues in your life. Personal finance matters a lot to us - understandably! - and without knowing our rights when it comes to financial issues, we can end up in a worse position than we need to be in. Declaring bankruptcy is a very big deal and can be a source of shame for many people.
If you are facing seemingly insurmountable debt, you might be eligible to be declared bankrupt. But what does this mean?
Bankruptcy is often requested or declared either by a court of law, or by the debtor. If you are bankrupt it means that you are unable to pay back any loans or debts you have, and are struggling to see a way out. Your assets such as property and other possessions are then reclaimed and used to pay off the debts. Once the bankruptcy is finished, your debts are either largely diminished or cancelled altogether. People can declare bankruptcy for all sorts of reasons, such as job loss, marriage failure or a buildup of debts which become out of control for any reason. Bankruptcy sounds like the worst possible scenario, but actually, it can help many people regain control of their lives and start afresh.
How Do I Know If I’m Eligible?
If no court or debtor has requested your bankruptcy status, you might be able to declare yourself bankrupt to help clear some of your debts. In order to know if you’re eligible to declare bankruptcy, you should contact a bankruptcy bureau or advice site for more information. You may be able to take a quiz or questionnaire to assess your eligibility for bankruptcy. For my readers in the great State of Pennsylvania, here’s how to find a bankruptcy lawyer in Pennsylvania who can help talk you through your options and decide on the best course of action during this difficult time.
Knowing Your Rights
One thing that is crucial when going through any financial turmoil, be it bankruptcy, loan repayment, mortgages or anything else, is to know your rights. Unfortunately, the average person’s education on their financial and legal rights is very limited. This is often not due to their personal failing but rather the design of our educational systems which omits proper financial education.
One important factor of financial knowledge that can help you is the 4 US Constitutions. Have you ever seen the Hamilton musical? If you have, and it really does seem that everybody has, you will have witnessed a fast-paced musical version of the constitutional convention, the assumption of debt that America owed at the time to France for aiding them in revolution, and the writing-in of laws which allow bankruptcy to take place. But why are these laws important today?
Many opposed this constitutional convention due to the bureaucratic nature of its outcomes. It means that the people cannot be liable for bankruptcy, only the state government can.
Knowing your rights allows you to challenge or at least understand a bankruptcy charge laid against you. If you are involved in a bankruptcy charge you wish to oppose, contact a lawyer and educate yourself on your rights.