Answering the Most Frequently Asked Questions Bankruptcy

 Civil law suit Singapore is a way for firms to get back the money they had loaned out. In case the company or individual files for bankruptcy, the civil law suit would be rendered ineffective. However, there are several aspects of a civil law suit and bankruptcy that need answers before you can proceed in the right direction. In this article, we will take a look at some of the frequently asked questions about these to understand how either of them work.

1. What are the various types of bankruptcy?
There are various types of bankruptcy, and each one is defined by a code. Among the different bankruptcies, the chapters 7, 11 and 13 are most important. They offer sound help for those who wish to file for bankruptcy.

• Chapter 7 allows the debtor to liquidate the non-exempt assets and pay back the money using them
• With chapter 9, law allows reorganization of the municipalities, and this is specifically for those that have experienced income loss
• The chapter 11 is for corporates and partnership based companies.
There is a chapter specifically designed for the particular bankruptcy type. It should be chosen based on the needs of the civil law suit
Singapore and other aspects that are leading you to bankruptcy.

2. Does bankruptcy affect an individual’s credit score?
The credit score is good if you have been working through your debts and making the payments. However, most individuals file for bankruptcy when they have missed payments or don’t have the money to make them eventually. As a result, it impacts the credit score. However, once you have filed for bankruptcy, you may notice a slight improvement in your credit score eventually. You should connect with a bankruptcy law firm if you need help with the credit score.  

3. How do we know if we qualify for bankruptcy?
Not all individuals or firms can file for bankruptcy immediately after stopping the payments. There are certain individual criteria that can help you in this case. For instance, if you have mortgage arrears but you also have a good earning, you might have to file for a specific chapter. This would allow you to liquidate the non-exempt assets. However, connecting with a bankruptcy lawyer Singapore can help know if you qualify for bankruptcy.

4. Can I save my house while filing for bankruptcy?
A lot of people would like to save the roof on their head from bankruptcy. When you file for bankruptcy, you tend to prevent the foreclosure proceedings. As a result, you might be discharged of a few debts, including mortgage payments on the house. This can ensure that you save your house while filing for bankruptcy. So, there is a good possibility you can save your house. However, consulting the right law firm can help you with the process.

5. What debts are covered by bankruptcy?
You can easily cover the unsecure loans (credit cards) and medical bills through bankruptcy. However, most of the secured loans cannot be covered by filing bankruptcy. You may want to consult bankruptcy lawyer Singapore to help with what you can gain with bankruptcy.