It seems as if one cannot turn around without hearing about yet another business or person that is in serious financial trouble. Massive job losses, global financial insecurity and serious fluctuations in the exchange rates are just a few factors contributing to this growing problem. Businesses and individuals in serious trouble do what they can to solve their problems, but in many cases they reach a point where they simply cannot see the way forward. With a Ch 11 bankruptcy TN citizens can try to start anew.
Being declared bankrupt is certainly not a matter of filling out an application and to then ask the court to make an order. The courts are, in fact, very reluctant to grant such applications. They first need to be absolutely certain that the applicant is definitely not able to meet his financial obligations. A thorough means test is normally ordered and if there is doubt, the application will not even be considered.
Applying to be declared bankrupt should be the absolutely final solution. Every effort should be made to find other solutions. In many cases, creditors will be willing to adjust their payment schedules to stretch over a longer period with smaller monthly payments. It may even be possible to obtain finance in order to pay off all debt and pay one single creditor back.
It is also important to know that the application process is grueling and lengthy. The applicant will be submitted to a detailed examination of his finances, his life style, his spending habits and his income. His assets will be catalogued and he will be prohibited from making a single further financial commitment. Every single record demanded by the court will have to be submitted.
When the court agrees to hear an application, it will immediately appoint a trustee to oversee the process. The role of the trustee is primarily to protect the interests of the creditors, not the interests of the applicant. He will therefore seize all the assets of the applicant, leaving only those items deemed crucial for continued survival. The assets will be sold on open auction and the proceeds will be distributed among the creditors.
Only once the trustee informs the court that he has done everything he can to pay the creditors of the applicant will the court finally issue a discharge order. When this is done, the applicant may no longer be contacted by his creditors. The order does not cancel all his obligations, however. He will still have to pay outstanding taxes and the payments on any secured loan. Support payments must also continue.
It is only natural for human beings to ignore problems when they first manifest themselves, hoping that matters will be resolved in good time. This is seldom the case, unfortunately. When it becomes clear that there are financial troubles, the very best thing to do is to seek help immediately. In fact, most bankruptcies can be avoided if only the applicant acted in time.
Bankruptcies have serious consequences. The bankrupt individual will struggle to obtain finance and his credit record will be blemished for years. He may be excluded from applying for certain types of jobs and the seizure of his assets can be crippling to himself and his loved ones.
Being declared bankrupt is certainly not a matter of filling out an application and to then ask the court to make an order. The courts are, in fact, very reluctant to grant such applications. They first need to be absolutely certain that the applicant is definitely not able to meet his financial obligations. A thorough means test is normally ordered and if there is doubt, the application will not even be considered.
Applying to be declared bankrupt should be the absolutely final solution. Every effort should be made to find other solutions. In many cases, creditors will be willing to adjust their payment schedules to stretch over a longer period with smaller monthly payments. It may even be possible to obtain finance in order to pay off all debt and pay one single creditor back.
It is also important to know that the application process is grueling and lengthy. The applicant will be submitted to a detailed examination of his finances, his life style, his spending habits and his income. His assets will be catalogued and he will be prohibited from making a single further financial commitment. Every single record demanded by the court will have to be submitted.
When the court agrees to hear an application, it will immediately appoint a trustee to oversee the process. The role of the trustee is primarily to protect the interests of the creditors, not the interests of the applicant. He will therefore seize all the assets of the applicant, leaving only those items deemed crucial for continued survival. The assets will be sold on open auction and the proceeds will be distributed among the creditors.
Only once the trustee informs the court that he has done everything he can to pay the creditors of the applicant will the court finally issue a discharge order. When this is done, the applicant may no longer be contacted by his creditors. The order does not cancel all his obligations, however. He will still have to pay outstanding taxes and the payments on any secured loan. Support payments must also continue.
It is only natural for human beings to ignore problems when they first manifest themselves, hoping that matters will be resolved in good time. This is seldom the case, unfortunately. When it becomes clear that there are financial troubles, the very best thing to do is to seek help immediately. In fact, most bankruptcies can be avoided if only the applicant acted in time.
Bankruptcies have serious consequences. The bankrupt individual will struggle to obtain finance and his credit record will be blemished for years. He may be excluded from applying for certain types of jobs and the seizure of his assets can be crippling to himself and his loved ones.
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