How Does Bankruptcy Help Consumers

In Singapore, consumers need a realistic solution for their debts. These solutions could include bankruptcy. These claims allow the consumer to reduce their volume of debt or eliminate their debts entirely. These can also provide assistance if the consumer is facing foreclosure. The following are details about how a bankruptcy claim can help consumers.

Long-Term Debt Relief

Bankruptcy cases present the consumers with long-term debt relief. They can pay off all debts with the right bankruptcy chapter. These chapters provide them a choice between liquidation that takes up to six months to complete or chapter 13 that could take up to five years. Once these claims are completed, the consumer won’t have to worry about any debts that were eliminated through the bankruptcy.

Immediate Protection from Legal Action

Through an automatic stay, the consumer can avoid legal action from their creditors. The automatic stay lasts for the full duration of the bankruptcy claim. The creditors cannot take any action to seize property through foreclosure or repossession once the automatic stay is in place. Once the bankruptcy claim is approved this stay provides this level of protection for the consumer.

A Faster Solution for Settling Debts

With bankruptcy, the consumer won’t pay for these debts for more extended periods. The longest duration for bankruptcy claims is five years. Instead of paying off debts for 10 years or more, they gain the benefits of simplifying their finances. The attorney helps them determine what debts can be discharged or settled through liquidation or repayment plans.

Credit Counseling Programs

Credit counseling programs are required for all consumers who want to file a bankruptcy claim. The credit counseling program must be approved by the court and based in the region in which the consumer lives. They need a certification of completion for these programs before starting the claim.

In Singapore, consumers find more realistic solutions for overwhelming debts. A bankruptcy claim provides them with the option of starting liquidation or setting up a repayment plan. These solutions can help the consumer become completely debt-free in some circumstances. Consumers who need to start a claim contact liquidation lawyers in Singapore for more info now.