Group axrorbek To’lqinov what is bunkruptcy? Bunkruptcy

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Axrorbek To’lqinov

WHAT IS BUNKRUPTCY?

BUNKRUPTCY

• A legal proceeding involving a person or business that is unable to repay outstanding debts
• All of debtor’s assets are measured and evaluated, whereupon the assets are used to repay a portion of outstanding

Types of Bankruptcy

• Voluntary bakruptcy: A bankruptcy petition filed in federal court by the distressed firm’s management.
• Involuntary bankruptcy: A bankruptcy petition filed in federal court by the distressed firm’s creditors.

Reasons

• Market Conditions
• Financing
• Poor Decision Making
• Other Causes

How to Overcome Bankruptcy

• Cut Costs
• Contact Customers and Suppliers
• Contact Creditors
• Consolidate Loans

Top 8 Bankruptcy Myths

• Bankruptcy ruins your credit and prevents you from getting a car loan, mortgage loan, credit card, etc. for up to 10 years.
• People can file for bankruptcy as many times as they want.
• Free House! (i.e. You don’t have to pay for your house (or car in bankruptcy.)
• You lose all your stuff: the reverse of the Free House myth.
• The discharge gets you out of all debt.
• You can choose what debts and what assets are in bankruptcy.
• You should buy lots of expensive things and take vacation right before you file since it will all be discharged anyway.
• Bankruptcy fixes your debt problems.

Successful people have filed bankruptcy, including

• Henry Ford,
• Walt Disney,
• Donald Trump,
• Burt Reynolds,
• 50 Cent
• Anna Nicole Smith.

Bankruptcy ruins your credit

• Bankruptcy does leave a blemish on your credit report.
• But ability to access credit actually increases for many people after they receive a bankruptcy discharge (albeit at a higher rate of interest).
• This is because a debtor cannot receive another discharge for several years—amount of time varies by chapter you were in and chapter you file in the future.
• Debtors routinely receive applications for credit cards and approval for car loans while they are in bankruptcy.