The process of going bankrupt is usually unhappy for all parties concerned. Creditors lose money and employees lose their jobs. However, sometimes the bankrupt company or individual is simply unable to meet their liabilities, and in such instances they may approach bankruptcy attorneys in Los Angeles County in order to discharge their debts.
A debt discharge order is issued by the court and entails that the debtor no longer has to pay most or all of their debts. Creditors have no recourse against this order. Only the debts in existence before the order was issued are then permanently canceled.
Not all debts can be legally discharged. Where the Receiver is owed money, the debtor does not always have this option. Also, family debts such child support and alimony are sacrosanct, as are criminal penalties or personal liability arising from drink driving (or driving under the influence of drugs).
During the court proceedings, the indebted person must be absolutely honest. All debts must be identified so as to prevent the exclusion of one or more of them in the order. False testimony or the deliberate obstruction of the court, such as through making business records unavailable, may lead to a negative outcome.
Also, debts associated with crime or fraudulent operations obviously cannot be discharged. Any money or goods obtained through such measures will obstruct the discharge proceedings. It is bad in law to assume that restitution in criminal prosecutions can be evaded through an official bankruptcy order.
If a secured debt is discharged, the creditor is still allowed to reclaim the asset, such as a motor vehicle or appliance. Should the debtor desire to keep the asset, they will still have to pay it off.
Bankruptcy is a problematic occurrence. But for some people, repayment is impossible. By following a formal legal process, assisted by experienced practitioners, bankrupt entities may elicit a more understanding response from their creditors.
A debt discharge order is issued by the court and entails that the debtor no longer has to pay most or all of their debts. Creditors have no recourse against this order. Only the debts in existence before the order was issued are then permanently canceled.
Not all debts can be legally discharged. Where the Receiver is owed money, the debtor does not always have this option. Also, family debts such child support and alimony are sacrosanct, as are criminal penalties or personal liability arising from drink driving (or driving under the influence of drugs).
During the court proceedings, the indebted person must be absolutely honest. All debts must be identified so as to prevent the exclusion of one or more of them in the order. False testimony or the deliberate obstruction of the court, such as through making business records unavailable, may lead to a negative outcome.
Also, debts associated with crime or fraudulent operations obviously cannot be discharged. Any money or goods obtained through such measures will obstruct the discharge proceedings. It is bad in law to assume that restitution in criminal prosecutions can be evaded through an official bankruptcy order.
If a secured debt is discharged, the creditor is still allowed to reclaim the asset, such as a motor vehicle or appliance. Should the debtor desire to keep the asset, they will still have to pay it off.
Bankruptcy is a problematic occurrence. But for some people, repayment is impossible. By following a formal legal process, assisted by experienced practitioners, bankrupt entities may elicit a more understanding response from their creditors.
About the Author:
Find an overview of the benefits you get when you work with bankruptcy attorneys in Los Angeles County and more information about a well-respected lawyer at http://www.goldbachlaw.com/ now.
No comments:
Post a Comment