Author: Peter GitunduAn individual who is not in a position to pay off debts could choose to file a personal bankruptcy petition either under chapter 7 or 13. He must also present the court with a list of all the creditors, all the assets on his name and most important, recent financial statements. These statements will be used by the court to determine if the debtor is in a position to pay off the debts.
A meeting will then be held with the creditors, the debtor and a trustee. Under oath, the debtor will confirm a list of his assets. Once a debtor has chosen to file a personal bankruptcy petition, it will be important to know that it is not mandatory for the spouse to file with the debtor. This is if they are not part of the debt since creditors cannot pursue a debtor who does not have any connection with the debt.
In case the debt is in the name of both partners then both must file. When a debtor chooses to file a personal bankruptcy case, they worry so much that many people will know about their financial struggles but this is not reason enough for anyone to stop doing the right thing. The fact is that, though insolvency cases are normally public issues not many people will know about it.
It is only the involved parties i.e. the creditors, the trustee attorney and the court handling the case that get to know about your financial situation. Personal bankruptcy is not only for the irresponsible, there are situations out of control that make people file an insolvency petition.
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