Few things are as stressful as realizing that one cannot cope financially any longer. Sadly, an increasing number of people find themselves in this very unenviable position. Recession, job losses, a weak economy and often very poor personal financial management cause families and businesses to face utter ruin. Sometimes this lead to insolvency. When represented by a reputable bankruptcy attorney Washington DC clients can at least rest assured that their affairs are in good hands.
Applications made by either individuals or business entities in terms of chapters 7 and 13 is seen as very serious by the courts. The process is never quick and it can be extremely stressful. The best course of action is to hire the services of a lawyer that specialize in this type of case. He will deal with the myriad of details involved in an application for insolvency.
It would be a huge mistake to think that an application for insolvency will prove to be a quick and convenient way in which to abdicate financial obligations. The court will thoroughly investigate all the affairs of the applicant and consider various ways in which the applicant can remain responsible for his obligations. The priority of the court is not to protect the applicant but rather to protect the interests of the debtors of the applicant.
Once the court is satisfied with the validity of an application a court appointed trustee will manage the rest of the process. He will almost certainly confiscate and sell the assets of the applicant. In the case of business applicants, the trustee will decide if the business is viable and will accordingly decide whether it should be kept going, be sold as a going concern or simply closed down.
Many applicants do not realize that an insolvency order does not mean that they do not still have outstanding debt. Secured loans, for example, are not affected by an insolvency order. Back taxes, child support payments must also be paid even if an insolvency order was issued. The applicant will, , however, be allowed to retain his car, basic items of furniture and his clothing.
Reputable lawyers will make very sure that their clients understand the far reaching consequences of a liquidation. They will have a very poor credit record for some years and it may take up to ten years before they will be able to successfully apply for financing. The applicant will lose control over his personal finances and will be closely monitored to make sure he keeps to the conditions of the liquidation order.
There are alternatives to insolvency when in dire financial straits. In many cases claimants are willing to talk about longer payment periods and smaller monthly payments. In other cases it is possible to approach the courts to make an order in this regard. In such cases the lawyer will consolidate all the debt of his client and distribute payments to the claimants on a monthly basis.
Bankruptcy is a serious matter and should be avoided if at all possible. Many people wait until it is too late for alternative solutions to be found. It is certainly best to obtain professional help as soon as it becomes clear that serious financial problems are looming.
Applications made by either individuals or business entities in terms of chapters 7 and 13 is seen as very serious by the courts. The process is never quick and it can be extremely stressful. The best course of action is to hire the services of a lawyer that specialize in this type of case. He will deal with the myriad of details involved in an application for insolvency.
It would be a huge mistake to think that an application for insolvency will prove to be a quick and convenient way in which to abdicate financial obligations. The court will thoroughly investigate all the affairs of the applicant and consider various ways in which the applicant can remain responsible for his obligations. The priority of the court is not to protect the applicant but rather to protect the interests of the debtors of the applicant.
Once the court is satisfied with the validity of an application a court appointed trustee will manage the rest of the process. He will almost certainly confiscate and sell the assets of the applicant. In the case of business applicants, the trustee will decide if the business is viable and will accordingly decide whether it should be kept going, be sold as a going concern or simply closed down.
Many applicants do not realize that an insolvency order does not mean that they do not still have outstanding debt. Secured loans, for example, are not affected by an insolvency order. Back taxes, child support payments must also be paid even if an insolvency order was issued. The applicant will, , however, be allowed to retain his car, basic items of furniture and his clothing.
Reputable lawyers will make very sure that their clients understand the far reaching consequences of a liquidation. They will have a very poor credit record for some years and it may take up to ten years before they will be able to successfully apply for financing. The applicant will lose control over his personal finances and will be closely monitored to make sure he keeps to the conditions of the liquidation order.
There are alternatives to insolvency when in dire financial straits. In many cases claimants are willing to talk about longer payment periods and smaller monthly payments. In other cases it is possible to approach the courts to make an order in this regard. In such cases the lawyer will consolidate all the debt of his client and distribute payments to the claimants on a monthly basis.
Bankruptcy is a serious matter and should be avoided if at all possible. Many people wait until it is too late for alternative solutions to be found. It is certainly best to obtain professional help as soon as it becomes clear that serious financial problems are looming.
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