When you first started your company, you may never have envisioned it failing at some point. Instead, you probably had high hopes for it to do well and make a lot of money. However, given the recent economic downturn, you might not have been able to protect your company from the pitfalls of the recession. You may have lost more money than you could have afforded. You also may have creditors knocking at your door and calling you at all hours for their payments. By filing for business bankruptcy TN entrepreneurs may safeguard your own personal assets and be able to rebuild your company in the near future.
Filing this legal action could be the most logical step if you want to protect the assets you have in your possession. Without this form of legal protection, the people to whom you owe money can petition the court for levies against your bank account as well as other liquid assets like your retirement savings, car, home, and other valuables. You will be forced to turn over ownership to the individuals to whom you owe a debt.
Once the case is filed, your assets will be protected by the court and the court trustee appointed to your case. Nothing may be sold, transferred, or leased without the permission of the court and the trustee. This step means that creditors have no legal right to lay claim to anything you or your company owns.
If you plan to liquidate all of your debts, some of the possessions could be sold off, however, to settle some types of accounts. For example, if the trustee decides that you do not need two homes, the home used for vacation or secondary purposes will be sold and the money used to pay off some of the people to whom you owe money. You will not be allowed to decide if or for how much the asset is liquidated.
However, the judge has the legal obligation of protecting your income, your primary home, and at least one car in your possession. These assets are deemed necessary for you to be able to live a productive life. The creditors cannot lay claim to them and instead may be told that they have no choice but to write off your debt entirely.
Filing this type of case in court can be confusing if you were to try it all by yourself. You may not know what documents are required by the clerk and what proof of income and debts must be filed right away. Without some or all of the documents, your case could be thrown out of court.
They are not allowed to send letters, make phone calls, or visit you in person demanding payment. Any communication must go through your attorney's office. Failure to abide by this court order could result in them being held liable for your court costs as well as other civil penalties.
A bankruptcy could be in the best interest of your business when you have more debt than money in your bank account. Your assets could be at risk of being levied or seized. This type of legal action may safeguard what you own and prevent it from being levied or taken by creditors.
Filing this legal action could be the most logical step if you want to protect the assets you have in your possession. Without this form of legal protection, the people to whom you owe money can petition the court for levies against your bank account as well as other liquid assets like your retirement savings, car, home, and other valuables. You will be forced to turn over ownership to the individuals to whom you owe a debt.
Once the case is filed, your assets will be protected by the court and the court trustee appointed to your case. Nothing may be sold, transferred, or leased without the permission of the court and the trustee. This step means that creditors have no legal right to lay claim to anything you or your company owns.
If you plan to liquidate all of your debts, some of the possessions could be sold off, however, to settle some types of accounts. For example, if the trustee decides that you do not need two homes, the home used for vacation or secondary purposes will be sold and the money used to pay off some of the people to whom you owe money. You will not be allowed to decide if or for how much the asset is liquidated.
However, the judge has the legal obligation of protecting your income, your primary home, and at least one car in your possession. These assets are deemed necessary for you to be able to live a productive life. The creditors cannot lay claim to them and instead may be told that they have no choice but to write off your debt entirely.
Filing this type of case in court can be confusing if you were to try it all by yourself. You may not know what documents are required by the clerk and what proof of income and debts must be filed right away. Without some or all of the documents, your case could be thrown out of court.
They are not allowed to send letters, make phone calls, or visit you in person demanding payment. Any communication must go through your attorney's office. Failure to abide by this court order could result in them being held liable for your court costs as well as other civil penalties.
A bankruptcy could be in the best interest of your business when you have more debt than money in your bank account. Your assets could be at risk of being levied or seized. This type of legal action may safeguard what you own and prevent it from being levied or taken by creditors.
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Get a summary of the factors to consider when picking a business bankruptcy TN attorney and more information about an experienced lawyer at http://www.chattanoogach11.com now.
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