Stop throwing your money away

Addressing A Couple Of Important Bankruptcy Concerns You May Have

Going through a bankruptcy filing can be a highly confusing task, but it may be essential if you have gotten in trouble with your current bills. Unfortunately, there are some misconceptions and unanswered questions that many potential clients have about filing for bankruptcy. By learning the answers to the two following questions, you will have a much stronger idea of how the process of discharging your existing debts will be handled. 

How Is The Settlement Of Your Debts Handled?

The manner in which your debts will be discharged will depend on a variety of factors, but it will almost always entail meeting with your creditors to negotiate a fair offer for the current debt. This is done with the help of your attorney and a mediator that is trained to facilitate the parties of a bankruptcy coming to an agreement. 

Generally, you will meet with representatives from your creditors at a neutral site. Over the course of the day, a series of offers will be exchanged to help settle on a final offer to discharge the existing debt to finalize the bankruptcy. This process can be lengthy, but it is an essential step in the process to ensure that your creditors’ rights are represented during your bankruptcy filing. 

What If Your Creditors Are Unwilling To Strike A Deal With You?

You may be concerned that your creditors will be unwilling to work you to reach a fair settlement for your existing debt. This is a justifiable concern given the aggressive collection tactics that you may have encountered. However, it should be noted that these individuals have an interest in reaching an agreement with you through mediation. 

If it is apparent that a settlement between the debtors and creditors is not going to be reached, the court will take over this process. After carefully evaluating the debtor’s financial situation versus their current debts, the court will issue a binding judgement that dictates the final terms of the bankruptcy. As a result, creditors can lose out substantially in this situation because the courts will often be more favorable to the debtor in these instances, and this will almost assure that the creditors will be willing to reach an agreement with you during this round of the process. 

Filing for the protections of bankruptcy is a last-ditch effort that you may have to use to restore control over your financial life. By understanding how the debts you currently have will be handled during this process, you will be more informed when you are choosing whether or not to seek this type of legal protection from your creditors. For more information, contact a company like Westgeest & Associates.