What does the bankruptcy petition do?
The work of the bankruptcy petition can be divided into four wide categories: the review of the client's financial data, preparing the paperwork needed for bankruptcy, submitting the case to creditors and negotiating with creditors. The bankruptcy application is a formal application of an individual or business to be exempt from unsecured, unsecured debts. This process is one of the last options used in situations where there is not enough income to cover ongoing debt payments. The actual bankruptcy process is different in each country and the primary role of preparing the bankruptcy petition is to ensure that the process is properly completed.
During the initial meeting with the client, he will ask for the preparation of the petition to bankruptcy for a list of all debts, both secured and unsecured, which is held by the client. He then asks for the total monthly income from the client, gross and net values. In the next step, weigh all living costs such as rent, food, clothing, transport and other costs thatThe client is created every month. The calculations are completed to see if the client meets the bankruptcy protection requirements or whether there are other options.
bankruptcy protection is a legal process and, as a result, a considerable amount of paperwork is needed. The preparation of the bankruptcy petition must fill in the relevant forms, submit support documentation and provide proof if necessary. Incorrect following this process may lead to delay and possible legal steps against the client for non -payment of his debts.
The first phase of bankruptcy is a meeting of creditors. Although this is the required part of the process in the Bankruptcy Act, it is usually achieved by letters, e -maly and telephone calls than physical meetings. This meeting is usually held personally only for very large debts from a publicly traded company. In this situation, the company could continue the income itself, but they must restructurealigns debt to become more profitable.
In most areas, bankruptcy Act allows creditors to oppose bankruptcy or offer the conditions for compensation for debt without bankruptcy proceedings. The creditors can offer the client the possibility to pay a reduced part of the total debt to avoid bankruptcy. Negotiations with the client and the creditor are part of the responsibility of preparing the petition of bankruptcy.