As the unemployment rate rises, the cost of living sores and the economy remains sluggish more and more people find themselves facing serious financial difficulties. There are also more and more people and businesses that experience financial difficulties so severe that they simply cannot cope any longer. In such cases liquidation is sometimes the only option. However, without help from a bankruptcy attorney Washington DC families and businesses may struggle to cope with the system.
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.
Insolvency is not the easy route to a debt free state where the applicant no longer have to honour his obligations. It is viewed as a very serious matter and the court will not grant an application before a means test have been applied and every effort has been made to make sure that the applicant is indeed unable to cope financially. The rights of the claimants are seen as paramount and the court processes are there to see that their rights are protected.
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.
Even when a liquidation order is made by the court all financial obligations of the applicant do not magically disappear. The payment of loans that were made with assets as surety must still be paid. Tax arrears will never disappear and must also still be paid. Espousal and child support payments must be continued. The applicant will only retain his vehicle, clothes and some furniture.
When a lawyer accepts a case he will ensure that his client is fully informed about the various ramifications and consequences of insolvency. The clients needs to know that such an order will ruin his credit record for at least ten years and that he will not be able to obtain financing of any sort during that period. His income and expenditures will be closely monitored to ensure that he honours his obligations.
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.
Insolvency is not the easy route to a debt free state where the applicant no longer have to honour his obligations. It is viewed as a very serious matter and the court will not grant an application before a means test have been applied and every effort has been made to make sure that the applicant is indeed unable to cope financially. The rights of the claimants are seen as paramount and the court processes are there to see that their rights are protected.
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.
Even when a liquidation order is made by the court all financial obligations of the applicant do not magically disappear. The payment of loans that were made with assets as surety must still be paid. Tax arrears will never disappear and must also still be paid. Espousal and child support payments must be continued. The applicant will only retain his vehicle, clothes and some furniture.
When a lawyer accepts a case he will ensure that his client is fully informed about the various ramifications and consequences of insolvency. The clients needs to know that such an order will ruin his credit record for at least ten years and that he will not be able to obtain financing of any sort during that period. His income and expenditures will be closely monitored to ensure that he honours his obligations.
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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