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.
Filing in terms of Chapters 7 and 13 is not a simple or straight forward matter. The courts are very careful and need to evaluate a host of criteria before an application is granted. In most cases the process takes at least three months and can drag on for six. Such applications are emotionally draining and most people do not comprehend all the rules that must be followed. It is certainly better to ask a lawyer to deal with such an issue.
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.
Once an application for liquidation is filed the court will appoint a trustee. The main tasks of the trustee are to evaluate the estate of the applicant, to liquidate some assets in order to satisfy the demands of the debtors and to make sure that all the rules are followed. It is very important to fully cooperate with the appointed trustee and to be honest 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.
Bankruptcies should always be the very last resort. It is a serious step that will influence the life of the applicant for years to come. When liquidated, it is extraordinary difficult to obtain financing for up to ten years. If, during the rehabilitation period, the liquidated person experiences yet more serious financial difficulties he will not be eligible to apply for bankruptcy again.
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 and businesses end up in very serious financial difficulties because they did not act as soon as the problem became apparent. At the first sign of trouble debtors should be informed of the fact and alternative arrangements should be suggested. Ignoring financial problems will not solve the problem but only make it much worse.
Filing in terms of Chapters 7 and 13 is not a simple or straight forward matter. The courts are very careful and need to evaluate a host of criteria before an application is granted. In most cases the process takes at least three months and can drag on for six. Such applications are emotionally draining and most people do not comprehend all the rules that must be followed. It is certainly better to ask a lawyer to deal with such an issue.
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.
Once an application for liquidation is filed the court will appoint a trustee. The main tasks of the trustee are to evaluate the estate of the applicant, to liquidate some assets in order to satisfy the demands of the debtors and to make sure that all the rules are followed. It is very important to fully cooperate with the appointed trustee and to be honest 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.
Bankruptcies should always be the very last resort. It is a serious step that will influence the life of the applicant for years to come. When liquidated, it is extraordinary difficult to obtain financing for up to ten years. If, during the rehabilitation period, the liquidated person experiences yet more serious financial difficulties he will not be eligible to apply for bankruptcy again.
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 and businesses end up in very serious financial difficulties because they did not act as soon as the problem became apparent. At the first sign of trouble debtors should be informed of the fact and alternative arrangements should be suggested. Ignoring financial problems will not solve the problem but only make it much worse.
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