Many consumers are still not sure what personal bankruptcy is. In simple terms, personal bankruptcy means nothing more than the bankruptcy of the normal consumer. What was previously reserved only for companies is now also possible in the private sector. Personal bankruptcy occurs when consumers are no longer able to meet their monthly payment obligations due to over-indebtedness. In the event of personal bankruptcy, the debtor has the option of paying the debt within a certain period. If there is still something left, which is usually the case, the residual debt exemption comes into effect and the remaining liabilities are repaid without payment. However, the applicant for personal bankruptcy must meet certain conditions so that the application for personal bankruptcy is also approved.
The process of personal bankruptcy
Once personal bankruptcy has been applied for and approved, the debtor will have hard times. If the applicant is unemployed, he must accept any reasonable work, even if it does not correspond to his current job. He also has to do everything possible to quickly pay off his debts. This means that not only does he have the seizure-free amount of his salary or wages, he must also state other income, which includes gifts from family or friends. If the debtor violates these conditions, this can lead to a refusal to discharge the remaining debt.
Personal bankruptcy loan
Personal bankruptcyis the last resort to overindebtedness. Conversely, this also means that no new debts may arise. A loan with personal bankruptcy is not possible. Because that would mean that the debtor incurs new debts without having paid off the old ones. On the one hand, there will hardly be a bank that grants a loan with private bankruptcy; on the other hand, such behavior leads to the refusal to discharge the remaining debt. After all, the debtor is in a behavioral phase of seven years. A loan with personal bankruptcy would contradict this basic idea. It is also absolutely pointless to borrow again, because the past may have shown the debtor what the end result can be. Incidentally, such a debtor also acts fraudulently if he actually finds a bank that grants him a personal bankruptcy loan. Because if you take out a loan despite the poor economic situation, you can be punished. This is the case that the borrower knew in advance that he could not pay the necessary installments.