There are a number of steps in the bankruptcy filing process: selection of the trustee company, submission of required documentation, trustees attendance of the creditors meeting(in some cases the debtor has to attend), selling of the assets(not all the possessions are sold, there are certain thresholds put in place by the Office of the Superintendent of Bankruptcy), attending two credit counseling sessions, attending discharge hearing if required etc.

The discharge process takes from nine to twenty four months. This depends on the financial position of the debtor, demands of the creditors, and the previous credit history of the debtor(bankruptcy filing in the past etc.).Briefkasten Anthrazit

In the situations where the debtors earning capabilities are significant the debtor may be required to pay a surplus payments for the period of the discharge. The maximum income thresholds are set annually and the debtor will be required to pay 50% of the sum that is left over after subtracting the maximum earnings amount from the monthly net income.

Upon discharge the debtor if legally relieved from his obligations to the unsecured creditors. The bankruptcy record stays in the credit file for seven years from the discharge date, and in the cases where the debtor have been bankrupt before, for up to fourteen years.

Generally, bankruptcy is avoided, but in some situations it is an excellent solution to honest but unfortunate individuals.

The above mentioned methods are the most popular and widely used debt solutions. We hope that we have achieved our goal in providing the basic description of whats involved when selecting one of these programs. Of course there are other means to solve your debt problems; ask family or friends for help, seek additional income streams and spend carefully. Regardless of what option appeals to you we advise consulting a qualified professional for assistance.

This article was written for general educational purposes. It does not constitute legal advice of any kind. We do not provide any guarantee for the content, as the regulations change quite frequently. Please contact us directly or consult a qualified agency for legal advise.

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