As you embarked on your entrepreneurial career, you may never have foresaw the challenges that your company is facing today. In fact, you never predicted you would end up in massive debt to creditors whom you cannot pay on time if at all. While the state of your company may not be entirely your fault given the economic downturn of the last decade, you still are the only person who can do anything about the situation you are in right now. When you file for a type of business bankruptcy TN owners like you can safeguard your interests rather than give up assets like your home, bank account, vehicle, and other belongings to creditors.
One of the primary points of using this action involves the speed at which your assets can be protected. Once the motion is filed, creditors no longer have any means to lay claim to your car, income, house, or any other possession. Without acting quickly, a creditor could file a motion in court asking for ownership of an asset to be transferred to it. The possession could be levied and liquidated.
When you file this action in court, it puts an immediate protection on those assets and stops creditors from seizing anything that belongs to you. Instead, your assets will be transferred to the safekeeping of the court and the mediator in charge of your case. None of the assets can be touched until your case is decided.
If you are seeking a total liquidation of your debts, some of these possessions could be sold off to the court, however. For example, if the court decides that you have equipment that is not crucial to the everyday function of the company, it may be liquidated and the profits divided up among the people to whom you owe money. You will have no say in whether or not you get to keep the equipment.
Still, you will be left with enough with which to support your family and to continue to earn an income. The trustee cannot sell off your primary vehicle or home, your clothing, or anything required for the upkeep, safety, and wellness of your household. You will not be left with nothing to your name or credit.
Filing for this action quickly may be necessary to beat creditors to the proverbial punch. If they suspect you could file for the case, they may take action against you first to collect on any money possible. Once your case is filed, they are obligated by law to stop collection activity and to cease contacting you.
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.
Filing for bankruptcy might be the only way you have to protect important assets in your possession. Without this legal protection, creditors can lay claim to them. They also could seize your bank account and home. An attorney can help you file for this protective legal action right away.
One of the primary points of using this action involves the speed at which your assets can be protected. Once the motion is filed, creditors no longer have any means to lay claim to your car, income, house, or any other possession. Without acting quickly, a creditor could file a motion in court asking for ownership of an asset to be transferred to it. The possession could be levied and liquidated.
When you file this action in court, it puts an immediate protection on those assets and stops creditors from seizing anything that belongs to you. Instead, your assets will be transferred to the safekeeping of the court and the mediator in charge of your case. None of the assets can be touched until your case is decided.
If you are seeking a total liquidation of your debts, some of these possessions could be sold off to the court, however. For example, if the court decides that you have equipment that is not crucial to the everyday function of the company, it may be liquidated and the profits divided up among the people to whom you owe money. You will have no say in whether or not you get to keep the equipment.
Still, you will be left with enough with which to support your family and to continue to earn an income. The trustee cannot sell off your primary vehicle or home, your clothing, or anything required for the upkeep, safety, and wellness of your household. You will not be left with nothing to your name or credit.
Filing for this action quickly may be necessary to beat creditors to the proverbial punch. If they suspect you could file for the case, they may take action against you first to collect on any money possible. Once your case is filed, they are obligated by law to stop collection activity and to cease contacting you.
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.
Filing for bankruptcy might be the only way you have to protect important assets in your possession. Without this legal protection, creditors can lay claim to them. They also could seize your bank account and home. An attorney can help you file for this protective legal action right away.
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