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.
The courts do not deal with insolvency applications in terms of chapters 13 and 7 quickly or flippantly. Before such an application can be approved the courts need to now that the applicant is indeed in dire straits. The entire process is complicated and often prolonged. The very best course of action is to get a lawyer that specialize in insolvencies.
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.
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 a number of things that a lawyer can do to avoid an application for liquidation. He can negotiate longer payment terms with the claimants. Many claimants know that such agreements are their best chance of being paid. The lawyer can also consolidate the debt of the applicant and distribute payments according to the stipulations of a court order.
It is sad to learn that most applications in terms of chapters 13 and 7 could be avoided if only the applicants admitted their problems in good time. It is never a good idea to ignore financial difficulties. They will not disappear and it is always best to get professional help as quickly as possible.
The courts do not deal with insolvency applications in terms of chapters 13 and 7 quickly or flippantly. Before such an application can be approved the courts need to now that the applicant is indeed in dire straits. The entire process is complicated and often prolonged. The very best course of action is to get a lawyer that specialize in insolvencies.
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.
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 a number of things that a lawyer can do to avoid an application for liquidation. He can negotiate longer payment terms with the claimants. Many claimants know that such agreements are their best chance of being paid. The lawyer can also consolidate the debt of the applicant and distribute payments according to the stipulations of a court order.
It is sad to learn that most applications in terms of chapters 13 and 7 could be avoided if only the applicants admitted their problems in good time. It is never a good idea to ignore financial difficulties. They will not disappear and it is always best to get professional help as quickly as possible.
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