Overwhelming debt counts as one of the biggest calamities that can befall anyone. Threats and legal actions are just some of the problems those with serious financial problems have to face. Many people are the architects of their own financial problems. They simply do not manage their finances properly. But other factors, such as the weak economy, also play a role. If it is deemed inevitable to file for bankruptcy Manhattan New York NY residents should be sure that there are no other options.
When filing for liquidation in terms of either Chapter 7 or chapter 13 there are many rules that must be followed. In most cases the process takes three to six months. Most applicants are already dealing with severe stress and anxiety and find it difficult to cope with all the rules and the lengthy process. That is why it is better to appoint an experienced attorney to handle the matter on behalf of the applicant.
It would be a very big mistake to view liquidation as a way to escape responsibility for debt. This is certainly not true. The courts expect the applicant to explain the root causes of his difficulties and he has to convince the court that he deserves the relief provided by a liquidation order. During the process, the aim of the court is mainly to protect the rights of the debtors, not those of the creditor.
Once a court accepts an application it will appoint a trustee to oversee the entire process. In most cases the trustee will liquidate the majority of assets in order to pay the debtors. In the case of business applicants the business is sold, or it is stripped of its assets for sale on open auction. Applicants are required to cooperate with the trustee and to furnish all information and documents related to the liquidation.
It is a common misconception that liquidation will free the applicant from all financial responsibilities. Taxes, child support and payments on assets that are secured are not influenced by liquidation and the applicant will have to keep honouring those financial obligations. Unsecured debt, such as medical cost and credit card debt will, however, be erased. The applicant will also keep certain possessions, such as clothes and furnishings.
Bankruptcies should always be the very last resort. It is a serious step that will influence the life of the applicant for years to come. When liquidated, it is extraordinary difficult to obtain financing for up to ten years. If, during the rehabilitation period, the liquidated person experiences yet more serious financial difficulties he will not be eligible to apply for bankruptcy again.
Bankruptcies do not culminate in winners and losers. Everyone is a loser. Debtors seldom get all their money back and applicants lose their assets and good credit record. That is why it is very important to explore every possible alternative before filing for liquidation. In many cases it is possible to negotiate some sort of agreement whereby the applicant can honour his obligations if given time.
Severe financial difficulties can cause enormous stress and anxiety. Anyone experiencing financial problems should act immediately and not wait until the situation becomes desperate. Nothing can be gained from hoping for the best and praying for some miraculous solution.
When filing for liquidation in terms of either Chapter 7 or chapter 13 there are many rules that must be followed. In most cases the process takes three to six months. Most applicants are already dealing with severe stress and anxiety and find it difficult to cope with all the rules and the lengthy process. That is why it is better to appoint an experienced attorney to handle the matter on behalf of the applicant.
It would be a very big mistake to view liquidation as a way to escape responsibility for debt. This is certainly not true. The courts expect the applicant to explain the root causes of his difficulties and he has to convince the court that he deserves the relief provided by a liquidation order. During the process, the aim of the court is mainly to protect the rights of the debtors, not those of the creditor.
Once a court accepts an application it will appoint a trustee to oversee the entire process. In most cases the trustee will liquidate the majority of assets in order to pay the debtors. In the case of business applicants the business is sold, or it is stripped of its assets for sale on open auction. Applicants are required to cooperate with the trustee and to furnish all information and documents related to the liquidation.
It is a common misconception that liquidation will free the applicant from all financial responsibilities. Taxes, child support and payments on assets that are secured are not influenced by liquidation and the applicant will have to keep honouring those financial obligations. Unsecured debt, such as medical cost and credit card debt will, however, be erased. The applicant will also keep certain possessions, such as clothes and furnishings.
Bankruptcies should always be the very last resort. It is a serious step that will influence the life of the applicant for years to come. When liquidated, it is extraordinary difficult to obtain financing for up to ten years. If, during the rehabilitation period, the liquidated person experiences yet more serious financial difficulties he will not be eligible to apply for bankruptcy again.
Bankruptcies do not culminate in winners and losers. Everyone is a loser. Debtors seldom get all their money back and applicants lose their assets and good credit record. That is why it is very important to explore every possible alternative before filing for liquidation. In many cases it is possible to negotiate some sort of agreement whereby the applicant can honour his obligations if given time.
Severe financial difficulties can cause enormous stress and anxiety. Anyone experiencing financial problems should act immediately and not wait until the situation becomes desperate. Nothing can be gained from hoping for the best and praying for some miraculous solution.
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