There are many reasons why more and more people and businesses are finding themselves in serious financial trouble. The economy is sluggish, the unemployment rate is rising and many people are in debt. When it becomes impossible for an individual or a business to honor their financial responsibilities they may have to start thinking about liquidation. With help from a bankruptcy lawyer Snellville GA residents can go this painful route with the minimum of stress.
Businesses and individuals alike can file for insolvency in terms of chapter seven or chapter 13. However, the court will not automatically accept all applications. They first conduct a thorough study of the financial affairs of the applicant and they will need to know exactly how the applicant ended up in such a desperate position. This is a strenuous process and applicants should have an attorney on their sides.
It is a common misconception that insolvency is the best way to get out of financial trouble and to get debtors to back off. This is no so. Applicants are not treated very sympathetically by the courts. It is rather the demands of the debtors that are of concern. The aim of the court is to satisfy those demands, not to help the applicant to get back on his feet and to free him from his obligations.
A soon as a court agrees to hear an application, it will appoint a trustee to manage the process. The trustee has wide powers and will almost certainly confiscate all the assets of the applicant, leaving him with nothing but some furniture and perhaps his vehicle. Everything else will be sold and the money thus raised is distributed among the debtors. Sometimes they will sell businesses intact.
As soon as the trustee has done everything possible to satisfy the demands of the debtors, the court will approve a liquidation order. Debtors may then no longer make demands upon the applicant. By no means does this mean that the applicant is totally debt free, however. Back taxes, child support and loans that were secured will still have to be paid.
Applying for insolvency should be the very last resort and reputable lawyers will explore the alternatives before filing for bankruptcy. In most cases, debtors are willing to agree to new payback plans that will extend the time available to the creditor and that will result in lower monthly payments. In some cases the court will even order debtors to come to some agreement with the applicant.
The consequences of a liquidation order can be devastating. Not only does the applicant lose all his assets, but he will have to live with a very poor credit record and he will find it extremely difficult to obtain any form of financing. In addition, the applicant will no longer be in control of his own financial affairs but will be monitored very carefully for some time after the granting of the final order.
If there is no alternative other than to file in terms of chapters 7 and 13 then it is vital to obtain legal help. The process can be humiliating, drawn out and extremely stressful. An attorney can take on the burden and try to obtain the best possible outcome for his client.
Businesses and individuals alike can file for insolvency in terms of chapter seven or chapter 13. However, the court will not automatically accept all applications. They first conduct a thorough study of the financial affairs of the applicant and they will need to know exactly how the applicant ended up in such a desperate position. This is a strenuous process and applicants should have an attorney on their sides.
It is a common misconception that insolvency is the best way to get out of financial trouble and to get debtors to back off. This is no so. Applicants are not treated very sympathetically by the courts. It is rather the demands of the debtors that are of concern. The aim of the court is to satisfy those demands, not to help the applicant to get back on his feet and to free him from his obligations.
A soon as a court agrees to hear an application, it will appoint a trustee to manage the process. The trustee has wide powers and will almost certainly confiscate all the assets of the applicant, leaving him with nothing but some furniture and perhaps his vehicle. Everything else will be sold and the money thus raised is distributed among the debtors. Sometimes they will sell businesses intact.
As soon as the trustee has done everything possible to satisfy the demands of the debtors, the court will approve a liquidation order. Debtors may then no longer make demands upon the applicant. By no means does this mean that the applicant is totally debt free, however. Back taxes, child support and loans that were secured will still have to be paid.
Applying for insolvency should be the very last resort and reputable lawyers will explore the alternatives before filing for bankruptcy. In most cases, debtors are willing to agree to new payback plans that will extend the time available to the creditor and that will result in lower monthly payments. In some cases the court will even order debtors to come to some agreement with the applicant.
The consequences of a liquidation order can be devastating. Not only does the applicant lose all his assets, but he will have to live with a very poor credit record and he will find it extremely difficult to obtain any form of financing. In addition, the applicant will no longer be in control of his own financial affairs but will be monitored very carefully for some time after the granting of the final order.
If there is no alternative other than to file in terms of chapters 7 and 13 then it is vital to obtain legal help. The process can be humiliating, drawn out and extremely stressful. An attorney can take on the burden and try to obtain the best possible outcome for his client.
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You can get valuable tips on how to choose a bankruptcy lawyer Snellville GA area and more information about a reliable attorney at http://www.ajmitchlaw.com/attorney now.
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