Though bankruptcy may cross the minds of many when economically challenged, it is hard to find anyone who actually knows what bankruptcy is and how it works. But if you get to know it better, experts say you can have your second chance.
Kim&Bae, P. C., gave a seminar on bankruptcy law today in KCC(Korean Community Center). Bankruptcy law provides plans for debtors, both individual and corporate, to move on when they lack the capability to pay their debts, by distributing the debtor’s possessions to the creditors in a fair manner given by the law.
If you are planning to proceed into bankruptcy, Chapter 7, 11, or 13 is likely to be the case. It is recommended that you consider your financial status and consult with a lawyer, before making a decision.
Jimmy Song, a bankruptcy law expert from Kim&Bae, says that “Debt can cause economic difficulties for anyone. It is important to escape from debt by finding the right bankruptcy clause that applies to your situation, and quickly recover your credit.”
Before you file for bankruptcy, you will be receiving several calls from the credit card company or the bank. But from the moment you appoint an attorney to manage your bankruptcy, the law forces the calls to go only to your lawyer, not you.
You should notice that filing for bankruptcy does not automatically make all your debts go away. Even if you enter the bankruptcy process, fines, student loans, tax, debts incurred from fraud, alimony, overdue payment, etc. are still debts that you have to pay for. Filing for bankruptcy is often denied on grounds that assets have been moved to deceive creditors, or that the debtor did not make a suitable list of asset and debt.
