The number of people that approach the courts for liquidation orders rise every year. More and more people find themselves in financial difficulties so severe that they cannot pay their debts any longer. There are many factors that contribute to this problem. Companies are retrenching workers, the economy is sluggish and the currency is unstable. When obtaining the services of a bankruptcy attorney Washington DC clients can rest assured that some solution to their woes will be found.
When either a business or an individual make an application in terms of chapters 7 or 13 they should never be under the impression that the application will be granted quickly and automatically. It is a long process and applicants are well advised to get a lawyer to deal with their applications. Lawyers specializing in this field can shield their clients from the worst stress.
Many people think that liquidation is the quick and easy way out of overwhelming debt. This is definitely not the case. The applicant has to convince the court that he truly cannot service his debts and that he deserve to be given another chance. The focus of the court is the money owed to the debtors. It is their interests that must be protected and the court will do whatever it can to minimize their losses.
As soon as a court receives an application a trustee is appointed to manage the entire process. The trustee is given wide powers. If the applicant is a business, the trustee may close the business and sell all the assets or he may sell the business as a going concern. In the case of individuals all their assets are sold on open auction and the proceeds will be distributed between the debtors.
Even after a liquidation order is granted the applicant is not freed from all financial obligations. He will still have to pay his taxes and he will remain responsible for paying support. Secured loans are not cancelled by a liquidation order either. On the other hand, at least the applicant will be allowed to keep the tools of his trade and other assets deemed important to maintain a basic lifestyle.
When a lawyer accepts a case he will first ensure that his client fully understand and accept the ramifications of an application for liquidation. The applicant must know that his credit record will be ruined and that he will not be able to obtain financing for a minimum period of ten years. He will have to conduct his life according to a strict budget and during his rehabilitation period his financial affairs can be scrutinized at any time.
Before the lawyer proceed with the application he will help his client to explore all the alternatives. In many cases it is possible to reach new agreements with debtors. Debtors know that they will lose money if the client is liquidated and they are often rather willing to agree to a new payment schedule over a longer period. The lawyer will then proceed to consolidate the debt of his client.
Far too many people land up in the bankruptcy court because they fail to manage their personal finances and they incur debt by buying unnecessary luxuries. It is vital to have a sensible budget and to live according to that budget. When trouble does occur, however, it is important to get professional help from an experienced lawyer immediately.
When either a business or an individual make an application in terms of chapters 7 or 13 they should never be under the impression that the application will be granted quickly and automatically. It is a long process and applicants are well advised to get a lawyer to deal with their applications. Lawyers specializing in this field can shield their clients from the worst stress.
Many people think that liquidation is the quick and easy way out of overwhelming debt. This is definitely not the case. The applicant has to convince the court that he truly cannot service his debts and that he deserve to be given another chance. The focus of the court is the money owed to the debtors. It is their interests that must be protected and the court will do whatever it can to minimize their losses.
As soon as a court receives an application a trustee is appointed to manage the entire process. The trustee is given wide powers. If the applicant is a business, the trustee may close the business and sell all the assets or he may sell the business as a going concern. In the case of individuals all their assets are sold on open auction and the proceeds will be distributed between the debtors.
Even after a liquidation order is granted the applicant is not freed from all financial obligations. He will still have to pay his taxes and he will remain responsible for paying support. Secured loans are not cancelled by a liquidation order either. On the other hand, at least the applicant will be allowed to keep the tools of his trade and other assets deemed important to maintain a basic lifestyle.
When a lawyer accepts a case he will first ensure that his client fully understand and accept the ramifications of an application for liquidation. The applicant must know that his credit record will be ruined and that he will not be able to obtain financing for a minimum period of ten years. He will have to conduct his life according to a strict budget and during his rehabilitation period his financial affairs can be scrutinized at any time.
Before the lawyer proceed with the application he will help his client to explore all the alternatives. In many cases it is possible to reach new agreements with debtors. Debtors know that they will lose money if the client is liquidated and they are often rather willing to agree to a new payment schedule over a longer period. The lawyer will then proceed to consolidate the debt of his client.
Far too many people land up in the bankruptcy court because they fail to manage their personal finances and they incur debt by buying unnecessary luxuries. It is vital to have a sensible budget and to live according to that budget. When trouble does occur, however, it is important to get professional help from an experienced lawyer immediately.
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