Bankruptcy is a financial state that creates a lot of fear in many people. Being in a position where you are unable to pay your creditors is quite frustrating especially when one is sued or is forced to file an insolvency case. So many questions run through the mind and it is therefore advisable to seek professional assistance as you try to tackle some of these questions.
The first and the most basic question is 'under which chapter of the law should I file for insolvency?' Well, as a matter of fact, you should file for insolvency under chapters 7, 9, 11, 12 and 13 of the bankruptcy law. You need to consider all the other available alternatives before you can settle for this.
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If you have a problem with the chapters that deal with bankruptcy, it is good to consult with an attorney who will give you direction on the best way forward. You may also need to know if and how your spouse will be affected by your insolvency. He or she can only get affected if they signed up a contract or an agreement on your behalf as far as your debts are concerned.
You may also be asking yourself how your credibility will be affected by the state of insolvency. It is true that bankruptcy paints a negative image about you because in the first place, your name or the name of our company that is affected will be printed in your local dailies. Furthermore, you will not be able to hold a position as a company director as long as your name is not cleared from the insolvency records.
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