It seems as if one cannot turn around without hearing about yet another business or person that is in serious financial trouble. Massive job losses, global financial insecurity and serious fluctuations in the exchange rates are just a few factors contributing to this growing problem. Businesses and individuals in serious trouble do what they can to solve their problems, but in many cases they reach a point where they simply cannot see the way forward. With a Ch 11 bankruptcy TN citizens can try to start anew.
It is a huge misconception that being declared bankrupt will release the applicant from all financial obligations. It is certainly not the case. The courts are extremely careful when they vet applicants and they first need to be sure that there is no other remedy to the dilemma. To this end they will insist upon a means test to see if the applicant can, in any way, actually honor his obligations even if it requires some sacrifices.
Bankruptcies are not the only solution to financial problems. It is almost always possible to negotiate with creditors in order to extend payment periods and to lessen the monthly installments. It is even possible to approach the court to order creditors to do so. Specially trained debt counselors can help those in trouble to explore all their options and to consolidate their debt. It is definitely worth the effort.
Those that decide to go ahead with an application must accept the fact that the process is lengthy, humiliating and often embarrassing. Every aspect of the lifestyle and financial situation of the applicant will come under scrutiny. They will be forced to submit all their records and provide a detailed account of all their financial transactions. They will also have to submit a list of all their assets.
Once the court accepts the application, a trustee will be appointed without delay. Trustees have wide powers and they will concentrate on satisfying the demands of the creditors, not the needs of the applicant. To do this, they will seize the assets of the applicant and sell them to raise money that can be distributed among the creditors. The applicant will be left with the bare minimum needed to survive.
Only once the trustee informs the court that he has done everything he can to pay the creditors of the applicant will the court finally issue a discharge order. When this is done, the applicant may no longer be contacted by his creditors. The order does not cancel all his obligations, however. He will still have to pay outstanding taxes and the payments on any secured loan. Support payments must also continue.
It is only natural for human beings to ignore problems when they first manifest themselves, hoping that matters will be resolved in good time. This is seldom the case, unfortunately. When it becomes clear that there are financial troubles, the very best thing to do is to seek help immediately. In fact, most bankruptcies can be avoided if only the applicant acted in time.
Being bankrupt has long term consequences. The applicant will not easily obtain financing again and his credit record will be ruined for a very long time. The loss of his assets can easily lead to long term financial ruin too.
It is a huge misconception that being declared bankrupt will release the applicant from all financial obligations. It is certainly not the case. The courts are extremely careful when they vet applicants and they first need to be sure that there is no other remedy to the dilemma. To this end they will insist upon a means test to see if the applicant can, in any way, actually honor his obligations even if it requires some sacrifices.
Bankruptcies are not the only solution to financial problems. It is almost always possible to negotiate with creditors in order to extend payment periods and to lessen the monthly installments. It is even possible to approach the court to order creditors to do so. Specially trained debt counselors can help those in trouble to explore all their options and to consolidate their debt. It is definitely worth the effort.
Those that decide to go ahead with an application must accept the fact that the process is lengthy, humiliating and often embarrassing. Every aspect of the lifestyle and financial situation of the applicant will come under scrutiny. They will be forced to submit all their records and provide a detailed account of all their financial transactions. They will also have to submit a list of all their assets.
Once the court accepts the application, a trustee will be appointed without delay. Trustees have wide powers and they will concentrate on satisfying the demands of the creditors, not the needs of the applicant. To do this, they will seize the assets of the applicant and sell them to raise money that can be distributed among the creditors. The applicant will be left with the bare minimum needed to survive.
Only once the trustee informs the court that he has done everything he can to pay the creditors of the applicant will the court finally issue a discharge order. When this is done, the applicant may no longer be contacted by his creditors. The order does not cancel all his obligations, however. He will still have to pay outstanding taxes and the payments on any secured loan. Support payments must also continue.
It is only natural for human beings to ignore problems when they first manifest themselves, hoping that matters will be resolved in good time. This is seldom the case, unfortunately. When it becomes clear that there are financial troubles, the very best thing to do is to seek help immediately. In fact, most bankruptcies can be avoided if only the applicant acted in time.
Being bankrupt has long term consequences. The applicant will not easily obtain financing again and his credit record will be ruined for a very long time. The loss of his assets can easily lead to long term financial ruin too.
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