There are many reasons why individuals and businesses find themselves in a situation where they cannot financially cope any longer. Fierce competition, an unstable global economy, retrenchments, inflation and many other factors can contribute to the financial demise of an individual or entity. In some cases it is possible to restructure debt and gradually recover from the catastrophe. In other cases, however, this is not possible. By filing for bankruptcy Manhattan New York NY businesses and individuals can at least escape from overwhelming financial stress and start anew.
Individuals and businesses can file for liquidation in terms of either Chapter 7 or Chapter 13. The process is tedious and stressful and numerous criteria must be satisfied before an application is granted. Experts agree that applicants are better off hiring an experienced attorney to handle this type of case. Trying to manage a liquidation application without legal help almost always causes additional hardship.
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.
As soon as the court provisionally approve an application it appoints a trustee to manage the entire process. The trustee will seize all or most of the assets of the applicant. This will be sold to refund the debtors. In the case of a business applicant the business may be sold as a going concern or it may be closed and its assets sold. Applicants are expected to cooperate with the trustee 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.
Prospective applicants should think very carefully before filing an application for bankruptcy. Such a step will have serious long term consequences. The bankrupt individual or business will have a very poor credit record for up to ten years. They will find it very difficult to borrow money and if their financial situation worsens, they will not be allowed to file for liquidation again to gain relief.
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.
Severe financial difficulties can cause enormous stress and anxiety. Anyone experiencing financial problems should act immediately and not wait until the situation becomes desperate. Nothing can be gained from hoping for the best and praying for some miraculous solution.
Individuals and businesses can file for liquidation in terms of either Chapter 7 or Chapter 13. The process is tedious and stressful and numerous criteria must be satisfied before an application is granted. Experts agree that applicants are better off hiring an experienced attorney to handle this type of case. Trying to manage a liquidation application without legal help almost always causes additional hardship.
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.
As soon as the court provisionally approve an application it appoints a trustee to manage the entire process. The trustee will seize all or most of the assets of the applicant. This will be sold to refund the debtors. In the case of a business applicant the business may be sold as a going concern or it may be closed and its assets sold. Applicants are expected to cooperate with the trustee 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.
Prospective applicants should think very carefully before filing an application for bankruptcy. Such a step will have serious long term consequences. The bankrupt individual or business will have a very poor credit record for up to ten years. They will find it very difficult to borrow money and if their financial situation worsens, they will not be allowed to file for liquidation again to gain relief.
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.
Severe financial difficulties can cause enormous stress and anxiety. Anyone experiencing financial problems should act immediately and not wait until the situation becomes desperate. Nothing can be gained from hoping for the best and praying for some miraculous solution.
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