ankruptcy is a troublesome scenario and it needs the debtors or the bankrupts to go through legitimized procedure to get discharged from it. So, if you are being filed as bankruptcy, you must need to knock the doors of the court to get discharged from it. The bankruptcy cases are solved under two types of rules which are named as chapter 7 and chapter 13. If you had been filed as bankruptcy for going through hardship, you will be judged under the chapter 7 rules. The detailed procedure is given below:
Filing the petition:
When you are filed as bankruptcy, you must have to get discharged from it through legitimized procedure. And that legitimized procedure gets to start from filing petition. So, you will need to file a petition to the court when you want to get discharged from the bankruptcy. After filing the petition, the next procedure will get to start.
Statement on the reason:
There must have to be a reason which has leaded you towards bankruptcy. That particular reason has to be hardship as the discussion here is going on in this particular issue. Well, if you have been filed as bankruptcy for going through undue hardship, you must provide your statement on this point. Sometimes, providing statement might not be enough for you. You might need to prove the following things:
- You might need to prove that you are having a poor income which is not enough for survival. And you do not have any other income or financial source as well.
- The financial condition turned out to be too poor that you and your dependents have been through undue hardship.
- The financial status being too worse that you had not been able to pay off the debts accordingly. In fact, you and your family had been facing a lot of trouble with the financial hardship.
- And the default in paying off the debts which caused by the financial hardship filed yourself as bankruptcy.
If you can get to prove these things, you will be chosen to be judged under chapter 7 rules. The court might verify your statement and everything is if proven right, your judgment will get started.
Diminishing the loan which was the cause of bankruptcy:
Under the chapter 7 bankruptcy rule book, you will be discharged with the loan which had been the reason for filing as bankruptcy. And if the loan gets diminished, the bankruptcy has got also diminished from your shoulder.
But, some tasks are still left there. The court will come to a negotiation with the lenders and throw you with a repayment plan of the loan which you had been failed to pay off. This plan bad credit loans will be set in accordance to your income and affordability. And you will be the person who will have to pay off the debts accordingly.
So, in this way, you will get discharged from the bankruptcy if the reason for filing as bankruptcy is financial hardship.