As the unemployment rate rises, the cost of living sores and the economy remains sluggish more and more people find themselves facing serious financial difficulties. There are also more and more people and businesses that experience financial difficulties so severe that they simply cannot cope any longer. In such cases liquidation is sometimes the only option. However, without help from a bankruptcy attorney Washington DC families and businesses may struggle to cope with the system.
Applications made by either individuals or business entities in terms of chapters 7 and 13 is seen as very serious by the courts. The process is never quick and it can be extremely stressful. The best course of action is to hire the services of a lawyer that specialize in this type of case. He will deal with the myriad of details involved in an application for insolvency.
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.
The court will appoint a trustee as soon as the application is accepted. This trustee enjoys wide powers and his aim is to wind up the estate of the applicant to to do everything possible to settle the claims of the debtors. The assets of the applicant will be confiscated and sold to raise money to pay the claims of the debtors. Business applicant can expect their businesses to be sold or stripped of its assets.
Even when a liquidation order is made by the court all financial obligations of the applicant do not magically disappear. The payment of loans that were made with assets as surety must still be paid. Tax arrears will never disappear and must also still be paid. Espousal and child support payments must be continued. The applicant will only retain his vehicle, clothes and some furniture.
Experienced lawyers that have the interests of their clients at heart will advise them on the many negative consequences of insolvency. The client will have a serious black mark on his credit record for ten years. During this period he will not be able to borrow money or finance any purchases. He will have to downgrade his lifestyle and he will have to submit to financial monitoring.
There are alternatives to insolvency when in dire financial straits. In many cases claimants are willing to talk about longer payment periods and smaller monthly payments. In other cases it is possible to approach the courts to make an order in this regard. In such cases the lawyer will consolidate all the debt of his client and distribute payments to the claimants on a monthly basis.
It is a sad fact that so many people facing liquidation could have prevented it if only they sought help in time. There is no profit to be gained from ignoring serious financial problems and hoping that they will go away. The longer one waits before seeking help to more damaging the process will be.
Applications made by either individuals or business entities in terms of chapters 7 and 13 is seen as very serious by the courts. The process is never quick and it can be extremely stressful. The best course of action is to hire the services of a lawyer that specialize in this type of case. He will deal with the myriad of details involved in an application for insolvency.
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.
The court will appoint a trustee as soon as the application is accepted. This trustee enjoys wide powers and his aim is to wind up the estate of the applicant to to do everything possible to settle the claims of the debtors. The assets of the applicant will be confiscated and sold to raise money to pay the claims of the debtors. Business applicant can expect their businesses to be sold or stripped of its assets.
Even when a liquidation order is made by the court all financial obligations of the applicant do not magically disappear. The payment of loans that were made with assets as surety must still be paid. Tax arrears will never disappear and must also still be paid. Espousal and child support payments must be continued. The applicant will only retain his vehicle, clothes and some furniture.
Experienced lawyers that have the interests of their clients at heart will advise them on the many negative consequences of insolvency. The client will have a serious black mark on his credit record for ten years. During this period he will not be able to borrow money or finance any purchases. He will have to downgrade his lifestyle and he will have to submit to financial monitoring.
There are alternatives to insolvency when in dire financial straits. In many cases claimants are willing to talk about longer payment periods and smaller monthly payments. In other cases it is possible to approach the courts to make an order in this regard. In such cases the lawyer will consolidate all the debt of his client and distribute payments to the claimants on a monthly basis.
It is a sad fact that so many people facing liquidation could have prevented it if only they sought help in time. There is no profit to be gained from ignoring serious financial problems and hoping that they will go away. The longer one waits before seeking help to more damaging the process will be.
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