Overwhelming debt counts as one of the biggest calamities that can befall anyone. Threats and legal actions are just some of the problems those with serious financial problems have to face. Many people are the architects of their own financial problems. They simply do not manage their finances properly. But other factors, such as the weak economy, also play a role. If it is deemed inevitable to file for bankruptcy Manhattan New York NY residents should be sure that there are no other options.
Individuals and businesses can file for liquidation in terms of either Chapter 7 or Chapter 13. The process is tedious and stressful and numerous criteria must be satisfied before an application is granted. Experts agree that applicants are better off hiring an experienced attorney to handle this type of case. Trying to manage a liquidation application without legal help almost always causes additional hardship.
It is vital to understand that liquidation is not an easy route out of debilitating debt. The applicant will have to convince the courts that he deserves a chance and that he truly cannot honour his obligations. The priority of the court is to try and make sure that the losses suffered by debtors are kept to the absolute minimum and not to make sure that the applicant can continue with his present lifestyle.
As soon as the court provisionally approve an application it appoints a trustee to manage the entire process. The trustee will seize all or most of the assets of the applicant. This will be sold to refund the debtors. In the case of a business applicant the business may be sold as a going concern or it may be closed and its assets sold. Applicants are expected to cooperate with the trustee at all times.
Many applicants think that a liquidation will make all their financial obligations disappear, allowing them to start anew. This is not the case. Certain obligations, such as payments on secured loans, taxes, and child support remain in place. The applicant will be allowed to retain certain possessions, such as some furniture, clothes, tools and in some cases even a vehicle.
Prospective applicants should think very carefully before filing an application for bankruptcy. Such a step will have serious long term consequences. The bankrupt individual or business will have a very poor credit record for up to ten years. They will find it very difficult to borrow money and if their financial situation worsens, they will not be allowed to file for liquidation again to gain relief.
Bankruptcies do not culminate in winners and losers. Everyone is a loser. Debtors seldom get all their money back and applicants lose their assets and good credit record. That is why it is very important to explore every possible alternative before filing for liquidation. In many cases it is possible to negotiate some sort of agreement whereby the applicant can honour his obligations if given time.
Far too many people end up liquidated because they did not act as soon as they realized that they have severe financial problems. Ignoring such problems is foolish in the extreme. The problem should be addressed in good time and this will often be enough to ward of long term financial hardship.
Individuals and businesses can file for liquidation in terms of either Chapter 7 or Chapter 13. The process is tedious and stressful and numerous criteria must be satisfied before an application is granted. Experts agree that applicants are better off hiring an experienced attorney to handle this type of case. Trying to manage a liquidation application without legal help almost always causes additional hardship.
It is vital to understand that liquidation is not an easy route out of debilitating debt. The applicant will have to convince the courts that he deserves a chance and that he truly cannot honour his obligations. The priority of the court is to try and make sure that the losses suffered by debtors are kept to the absolute minimum and not to make sure that the applicant can continue with his present lifestyle.
As soon as the court provisionally approve an application it appoints a trustee to manage the entire process. The trustee will seize all or most of the assets of the applicant. This will be sold to refund the debtors. In the case of a business applicant the business may be sold as a going concern or it may be closed and its assets sold. Applicants are expected to cooperate with the trustee at all times.
Many applicants think that a liquidation will make all their financial obligations disappear, allowing them to start anew. This is not the case. Certain obligations, such as payments on secured loans, taxes, and child support remain in place. The applicant will be allowed to retain certain possessions, such as some furniture, clothes, tools and in some cases even a vehicle.
Prospective applicants should think very carefully before filing an application for bankruptcy. Such a step will have serious long term consequences. The bankrupt individual or business will have a very poor credit record for up to ten years. They will find it very difficult to borrow money and if their financial situation worsens, they will not be allowed to file for liquidation again to gain relief.
Bankruptcies do not culminate in winners and losers. Everyone is a loser. Debtors seldom get all their money back and applicants lose their assets and good credit record. That is why it is very important to explore every possible alternative before filing for liquidation. In many cases it is possible to negotiate some sort of agreement whereby the applicant can honour his obligations if given time.
Far too many people end up liquidated because they did not act as soon as they realized that they have severe financial problems. Ignoring such problems is foolish in the extreme. The problem should be addressed in good time and this will often be enough to ward of long term financial hardship.
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