What You Need To Know About Bankruptcy Cases

In Singapore, consumers can review possible strategies to become debt free. These strategies begin with an advanced understanding of bankruptcy laws. An attorney can provide insight into these chapters and provide the consumer with the most appropriate chapter based on their current financial status. The following are details that consumers can acquire from bankruptcy lawyers in Singapore.

Establishing Eligibility for Bankruptcy

The first step is to establish eligibility for the bankruptcy chapter of choice. The consumer must present their attorney with information about their income. Bankruptcy eligibility is based on income levels. For example, chapter 13 bankruptcy requires the consumer to earn an annual income that exceeds the media for their area. If they do not earn an above average salary, they aren’t eligible for this chapter.

With chapter 7 bankruptcy or liquidation, they must possess property or assets that generate enough capital to settle their debts. The attorney must assess their property and assets to determine if this chapter is right for them.

Choosing the Most Effective Chapter

Once the consumer has established eligibility for both chapters, the attorney reviews their debts. They establish which chapter could present the consumer with the greatest benefits overall. The current financial status of the consumer does play a role in how quickly they need to settle their debts. Liquidation is the fastest method of debt settlement. It takes up to six months to complete. If the consumer isn’t facing excessive debts, this could be the most appropriate option for them.

Repercussions of Payment Delays in Chapter 13

If the consumer accepts a structured repayment plan through chapter 13 bankruptcy, they must submit all payments in a timely manner. If they prefer, the court could set up wages garnishment. However, if the continue to fall behind on their payments, the judge can discharge their bankruptcy claim. The results of the discharge deem the consumer responsible for all debts including those that were discharged in the claim.

In Singapore, consumers have two primary bankruptcy options. They can file chapter 13 or 7. These chapters provide them with debt settlement through liquidation or a structured repayment plan. Consumers who want to start a claim contact an attorney now.