Every year an increasing number of people find themselves in a situation so dire that they are no longer able to honour their financial commitments. There are many reasons for this trend. The economy is shaky, businesses are laying off people and many people simply live beyond their means. In some severe cases insolvency may turn out to be the only solution. Helped by a bankruptcy attorney Washington DC citizens can find relief from the courts.
Applications for liquidation is normally made in terms of chapter 7 or chapter 13. Applications take time to process and the courts are often hesitant in granting orders before a thorough investigation has not been concluded. Nobody should embark on this route without legal help. It is best to appoint a lawyer experienced in handling insolvency cases to deal with the matter.
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.
Many applicants do not realize that an insolvency order does not mean that they do not still have outstanding debt. Secured loans, for example, are not affected by an insolvency order. Back taxes, child support payments must also be paid even if an insolvency order was issued. The applicant will, , however, be allowed to retain his car, basic items of furniture and his clothing.
Reputable lawyers will make very sure that their clients understand the far reaching consequences of a liquidation. They will have a very poor credit record for some years and it may take up to ten years before they will be able to successfully apply for financing. The applicant will lose control over his personal finances and will be closely monitored to make sure he keeps to the conditions of the liquidation order.
There are a number of things that a lawyer can do to avoid an application for liquidation. He can negotiate longer payment terms with the claimants. Many claimants know that such agreements are their best chance of being paid. The lawyer can also consolidate the debt of the applicant and distribute payments according to the stipulations of a court order.
It is sad to learn that most applications in terms of chapters 13 and 7 could be avoided if only the applicants admitted their problems in good time. It is never a good idea to ignore financial difficulties. They will not disappear and it is always best to get professional help as quickly as possible.
Applications for liquidation is normally made in terms of chapter 7 or chapter 13. Applications take time to process and the courts are often hesitant in granting orders before a thorough investigation has not been concluded. Nobody should embark on this route without legal help. It is best to appoint a lawyer experienced in handling insolvency cases to deal with the matter.
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.
Many applicants do not realize that an insolvency order does not mean that they do not still have outstanding debt. Secured loans, for example, are not affected by an insolvency order. Back taxes, child support payments must also be paid even if an insolvency order was issued. The applicant will, , however, be allowed to retain his car, basic items of furniture and his clothing.
Reputable lawyers will make very sure that their clients understand the far reaching consequences of a liquidation. They will have a very poor credit record for some years and it may take up to ten years before they will be able to successfully apply for financing. The applicant will lose control over his personal finances and will be closely monitored to make sure he keeps to the conditions of the liquidation order.
There are a number of things that a lawyer can do to avoid an application for liquidation. He can negotiate longer payment terms with the claimants. Many claimants know that such agreements are their best chance of being paid. The lawyer can also consolidate the debt of the applicant and distribute payments according to the stipulations of a court order.
It is sad to learn that most applications in terms of chapters 13 and 7 could be avoided if only the applicants admitted their problems in good time. It is never a good idea to ignore financial difficulties. They will not disappear and it is always best to get professional help as quickly as possible.
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