By definition, bankruptcy is the lawful status of an individual or body that is not able to pay back the debts owed to the creditors. This state is usually summoned by a court order which is at instigated by the debtor.Bankruptcy filing involves the person or entity involved filing an application to the national court. The main aim of the declaration of bankruptcy is to take away the burden of those who are no longer able to pay the debts owed to them by those who had lend them.
An individual is not supposed to rush in the process of filing bankruptcy. There are several factors that need to be considered as in advance. While it can offer one financial relief, it comes hand in hand with its consequences. One that is declared bankrupt faces a couple of challenges.
First, with this kind of statement in records of a person, the chances of them to get hired are very finite. People believe that due to the fact that the involved party lacks sufficient money to sustain him, temptations may arise and he may end up being corrupt in the office. Renting and buying apartments also become another issue to deal with. The members of the community end up stigmatizing the individuals lowering their self-esteem.
Seeking legal opinion is important as the attorney helps one determine which kind of bankruptcy to file for and takes the affected party through both the merits and the demerits of making such a decision. The involved lawyer also makes sure that the party has exhausted all possible means of paying the debt and this step should be the very last one.
In cases where those claiming for their money threaten to take away the assets of individual, filing for liquidation may let the client keep his assets. These may be in the form of fixed assets such as buildings motor vehicles and also machinery. This process was developed with the main agenda of being able to do away with debts that have proved to be almost impossible to pay.
In order for the process to complete, there are certain forms that are required to be handed over to the court by the associated parties. Here is where a lawyer comes in handy in informing the client on when to deliver this document and to whom they are to be taken. Failure to present these documents, the application of this client may be done away with.
The court then sends a notice of the insolvency filing to all the creditors that were written in the provided documents. This passes on a message to the creditors informing them that the affected individual has applied for protection and which chapter he has applied. This stops them from making any more advances to collecting the debt.
There are some incidences when one can recover money that was taken away from them ninety days prior to the date on which the filing was done. Filing fees differ. It is important to consult the court on the amount of the required fees but before making a final decision, many attorneys should be referred.
An individual is not supposed to rush in the process of filing bankruptcy. There are several factors that need to be considered as in advance. While it can offer one financial relief, it comes hand in hand with its consequences. One that is declared bankrupt faces a couple of challenges.
First, with this kind of statement in records of a person, the chances of them to get hired are very finite. People believe that due to the fact that the involved party lacks sufficient money to sustain him, temptations may arise and he may end up being corrupt in the office. Renting and buying apartments also become another issue to deal with. The members of the community end up stigmatizing the individuals lowering their self-esteem.
Seeking legal opinion is important as the attorney helps one determine which kind of bankruptcy to file for and takes the affected party through both the merits and the demerits of making such a decision. The involved lawyer also makes sure that the party has exhausted all possible means of paying the debt and this step should be the very last one.
In cases where those claiming for their money threaten to take away the assets of individual, filing for liquidation may let the client keep his assets. These may be in the form of fixed assets such as buildings motor vehicles and also machinery. This process was developed with the main agenda of being able to do away with debts that have proved to be almost impossible to pay.
In order for the process to complete, there are certain forms that are required to be handed over to the court by the associated parties. Here is where a lawyer comes in handy in informing the client on when to deliver this document and to whom they are to be taken. Failure to present these documents, the application of this client may be done away with.
The court then sends a notice of the insolvency filing to all the creditors that were written in the provided documents. This passes on a message to the creditors informing them that the affected individual has applied for protection and which chapter he has applied. This stops them from making any more advances to collecting the debt.
There are some incidences when one can recover money that was taken away from them ninety days prior to the date on which the filing was done. Filing fees differ. It is important to consult the court on the amount of the required fees but before making a final decision, many attorneys should be referred.
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