While this is a new year, and we wish all the best for everyone, misfortunes still happen. In these hard, still COVID-19 times, many companies and individuals will go broke. This is a hard pill to swallow, but when it happens, it is best that you know what to do. If you’re reading this article, we’ll assume that you do not know what awaits after filing for bankruptcy. Don’t worry, we understand that the situation is hard, but you’re in good hands, and we’ll try to provide the answers.
So, while filing for bankruptcy is not easy, it is there to help you in the end. It is all about the relief you’ll receive to recuperate in order to repay your debts. But, while everything turns out well for some, this might not be the case for some. This shouldn’t frighten you, like the one you’re familiar with the consequences, you’ll have a better picture. There are many options for you, despite losing everything, and knowing the consequences, will open some other doors, you weren’t even aware are there. Keep reading and see what we have to tell about how filing for bankruptcy affects you in 2024.
You’ll Receive a Trustee
Source: investopedia.com
This should bring you joy, as working with professionals in any field is what you need to look forward to. This decision comes before you file for bankruptcy, as it is best to get a registered trustee before you file. He or she will be there to administer your estate which is going through bankruptcy. While you’re not obligated to take one, we recommend that you do it yourself. In case this is not your move, the following will happen – AFSA will seek it for you, as they need consent from a registered trustee to do the work on your bankruptcy. If it happens that a registered trustee doesn’t give his consent, your case will be in the hands of AFSA and their official trustee. Now that you know this, it is all up to you to decide how to handle the issue on hand, but another way once you file the show has only started.
It Will Last Long
While your outlook on the time that will pass from the start of the bankruptcy process till its end might be different from ours, we believe that it is not a short process. There’s an estimated length that once the process is going to last and then there’s the minimal amount of time that it needs to last. In most cases, it is a minimum period of three years. Now, we know that this is not too much, but it can feel like a prolonged period due to all the hardship. It is essential to know that it starts from the day the organization in charge receives the claim. While you can end your bankruptcy in this time or a few years more, it is good to know that it can go all the way up to eight years as explained by Scura. If you haven’t resolved your issues in this timeframe it might seem like forever, and for some people it is. If you would like to navigate these waters more comfortably be sure to seek the counsel of a trusted local law firm to help you in your filing.
All Spheres of Your Life Will be Affected
Source: experian.com
Trust us when we say this. This is a process that envelops the person that goes through it the same way Konan attempted with Madara in Naruto. So don’t think about your income as your own anymore. The same goes for any type of business you might be running or your regular employment. If you earn money, the chances are that some of it will have to go to your trustee in order to lower your debt. After all, your creditors won’t sit idle through the whole ordeal. Also, you should expect that some form of restrictions will be put on both your business and your current employment, as this is the way these situations are being handled once the process starts. Also, while you’ll be free of some, mostly unsecured debts, not all of them are going to disappear once you file for bankruptcy. In a case that you need to pay for court expenses, child support, student or government loans, or even debt you start having in the process of bankruptcy, you’ll be responsible for them.
It Ties Your Hands to an Extent
If you own a company and are used to running all the things regarding it, you’ll be in trouble. Old habits die hard, but during the bankruptcy process, you won’t be allowed to be the head of your business. So, while the position of director was yours for the year this will have to change during this process. It doesn’t matter if you work with Personal Insolvency Agreement, and have the deal in place with your creditors, you still won’t be allowed to run the company as its chief of staff. Here, we’re talking about a way to avoid bankruptcy if it comes to that, so have that in mind. So, while you’ll be prohibited from running your company, it will not last forever. Unfortunately, it will be in power until you exit the process. The one way you can override this is if you have permission from the court.
You’ll be Travel Restricted
Source: schengenvisainfo.com
If you are a world citizen, this might pose a severe issue. Bankruptcy is no light subject, and while you might be handling the process properly, there will be restrictions as you can see. One of those that hurt most people and their companies the most is the travel restrictions. If you’re seen as a danger of escaping the country your trustee might deny you permission to travel. Of course, you can get written permission that you’re allowed to take flights overseas. Of course, this is also in the matter of your trustee and creditors as they will go through your request and see if it is worth allowing or denying.
