Few things are as stressful as realizing that one cannot cope financially any longer. Sadly, an increasing number of people find themselves in this very unenviable position. Recession, job losses, a weak economy and often very poor personal financial management cause families and businesses to face utter ruin. Sometimes this lead to insolvency. When represented by a reputable bankruptcy attorney Washington DC clients can at least rest assured that their affairs are in good hands.
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.
Anyone thinking that once they apply for liquidation all their immediate financial problems will disappear. This is certainly not true. The aim of the court is to do everything possible to make sure that the claimants are paid what they are owed. The court does not focus on the needs of the applicant, but rather on those in danger of suffering financially due to the way the applicant conducted his financial affairs.
Once an application has been taken under consideration by the court, a trustee will be appointed. The trustee will immediately attach all the assets of the applicant. These will be sold on auction to ensure that claimants are paid at least a part of the money owed to them. In the case of business applicants the trustee may decide to sell the enterprise as a going concern, but he may also decide to close down the business and to sell the assets.
Applicants often think that an insolvency order will absolve them from all debt and financial obligations. This is not so. They will have to keep on paying court ordered support to their children and spouses and they will remain responsible for paying all outstanding taxes. Payments on secured loans will also have to be maintained. At least the applicant is allowed to keep his automobile and some personal effects.
When a lawyer accepts a case he will ensure that his client is fully informed about the various ramifications and consequences of insolvency. The clients needs to know that such an order will ruin his credit record for at least ten years and that he will not be able to obtain financing of any sort during that period. His income and expenditures will be closely monitored to ensure that he honours his obligations.
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 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.
Anyone thinking that once they apply for liquidation all their immediate financial problems will disappear. This is certainly not true. The aim of the court is to do everything possible to make sure that the claimants are paid what they are owed. The court does not focus on the needs of the applicant, but rather on those in danger of suffering financially due to the way the applicant conducted his financial affairs.
Once an application has been taken under consideration by the court, a trustee will be appointed. The trustee will immediately attach all the assets of the applicant. These will be sold on auction to ensure that claimants are paid at least a part of the money owed to them. In the case of business applicants the trustee may decide to sell the enterprise as a going concern, but he may also decide to close down the business and to sell the assets.
Applicants often think that an insolvency order will absolve them from all debt and financial obligations. This is not so. They will have to keep on paying court ordered support to their children and spouses and they will remain responsible for paying all outstanding taxes. Payments on secured loans will also have to be maintained. At least the applicant is allowed to keep his automobile and some personal effects.
When a lawyer accepts a case he will ensure that his client is fully informed about the various ramifications and consequences of insolvency. The clients needs to know that such an order will ruin his credit record for at least ten years and that he will not be able to obtain financing of any sort during that period. His income and expenditures will be closely monitored to ensure that he honours his obligations.
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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