Numerous businesses and individuals have become the victims of a poor economy, increasing job losses, higher taxes and a number of other factors. This has resulted in a major increase in people and businesses that find themselves unable to manage their debts. Of course, debtors want to be paid and they therefore place those in trouble under great pressure. This can be very stressful and that is when many people start thinking about liquidation. With a bankruptcy lawyer Snellville GA residents hope to solve their problems.
When businesses or individuals want to file for liquidation, it is most often done on terms of chapter 7 or 13. Applicants have to realize, however, that it is a long and drawn out process. The courts will not grant an application without thoroughly investigating the financial position of the applicant. Applicants are definitely better off with an attorney experienced in handling insolvencies.
Liquidation is not an easy way in which to get rid of debt. The process is lengthy and the applicant will be subjected to many humiliations. All his affairs will be a matter of public record. He will have to allow the court to question his financial dealings and he will have to pass a means test before the court will accept his application. The main aim of the court is to try and satisfy the demands of the debtors.
Once the court approves an application, a trustee is immediately appointed to deal with the case. This trustee will inevitably seize all the assets of the applicant. This is sold on auction and the money raised in this manner is distributed among the creditors. The applicant will be left with a bit of furniture, clothes and often his car as well, but nothing else. The first priority is to satisfy the debtors.
Once the trustee reports to the court that everything possible has been done to pay the debtors, the court will issue a final insolvency order. This prohibits the debtors from demanding any further action from the applicant. However, this does not leave the applicant debt free. He will still have to pay support and he will still be responsible for servicing loans that were covered by assets.
Reputable insolvency attorneys will advise their clients to explore all the alternatives before filing an application. In many cases the attorney can negotiate a new payback plan with the debtors. It is even possible to ask the court to make such a new payment plan compulsory. Sometimes it is even possible to obtain a loan in order to consolidate the debt and pay back one single monthly amount.
Applying to be declared bankrupt is a serious decision that can have many negative long term consequences. If the application is granted, the bankrupt individual or business will not be able to obtain any form of finance for at least ten years. He will have to live with the consequences of a very poor credit record and he will have to agree to make all his future financial dealings available to the court for inspection.
If there is no alternative other than to file in terms of chapters 7 and 13 then it is vital to obtain legal help. The process can be humiliating, drawn out and extremely stressful. An attorney can take on the burden and try to obtain the best possible outcome for his client.
When businesses or individuals want to file for liquidation, it is most often done on terms of chapter 7 or 13. Applicants have to realize, however, that it is a long and drawn out process. The courts will not grant an application without thoroughly investigating the financial position of the applicant. Applicants are definitely better off with an attorney experienced in handling insolvencies.
Liquidation is not an easy way in which to get rid of debt. The process is lengthy and the applicant will be subjected to many humiliations. All his affairs will be a matter of public record. He will have to allow the court to question his financial dealings and he will have to pass a means test before the court will accept his application. The main aim of the court is to try and satisfy the demands of the debtors.
Once the court approves an application, a trustee is immediately appointed to deal with the case. This trustee will inevitably seize all the assets of the applicant. This is sold on auction and the money raised in this manner is distributed among the creditors. The applicant will be left with a bit of furniture, clothes and often his car as well, but nothing else. The first priority is to satisfy the debtors.
Once the trustee reports to the court that everything possible has been done to pay the debtors, the court will issue a final insolvency order. This prohibits the debtors from demanding any further action from the applicant. However, this does not leave the applicant debt free. He will still have to pay support and he will still be responsible for servicing loans that were covered by assets.
Reputable insolvency attorneys will advise their clients to explore all the alternatives before filing an application. In many cases the attorney can negotiate a new payback plan with the debtors. It is even possible to ask the court to make such a new payment plan compulsory. Sometimes it is even possible to obtain a loan in order to consolidate the debt and pay back one single monthly amount.
Applying to be declared bankrupt is a serious decision that can have many negative long term consequences. If the application is granted, the bankrupt individual or business will not be able to obtain any form of finance for at least ten years. He will have to live with the consequences of a very poor credit record and he will have to agree to make all his future financial dealings available to the court for inspection.
If there is no alternative other than to file in terms of chapters 7 and 13 then it is vital to obtain legal help. The process can be humiliating, drawn out and extremely stressful. An attorney can take on the burden and try to obtain the best possible outcome for his client.
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You can get valuable tips on how to choose a bankruptcy lawyer Snellville GA area and more information about a reliable attorney at http://www.ajmitchlaw.com/attorney now.
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