Global financial instability, currency fluctuations, job losses and many other factors have cause numerous people and businesses to experience serious financial problems. Of course there are those that are also in trouble because of irresponsible financial dealings. Those in trouble try to remedy the situation by cutting expenses but in many cases the situation is so bad that there does not seem to be a solution. However, by filing for Ch 11 bankruptcy TN residents need to know that this is a serious matter.
Having oneself or a business declared bankrupt is a very serious matter. It is not an easy way out of debt and other financial obligations. Courts are reluctant to grant such an order and they will first make absolutely sure that the applicant is truly unable to meet his commitments. A means test is applied and the financial dealings of the applicant will be examined.
Bankruptcies are not the only solution to financial problems. It is almost always possible to negotiate with creditors in order to extend payment periods and to lessen the monthly installments. It is even possible to approach the court to order creditors to do so. Specially trained debt counselors can help those in trouble to explore all their options and to consolidate their debt. It is definitely worth the effort.
Those that decide to go ahead with an application must accept the fact that the process is lengthy, humiliating and often embarrassing. Every aspect of the lifestyle and financial situation of the applicant will come under scrutiny. They will be forced to submit all their records and provide a detailed account of all their financial transactions. They will also have to submit a list of all their assets.
Once the court accepts the application, a trustee will be appointed without delay. Trustees have wide powers and they will concentrate on satisfying the demands of the creditors, not the needs of the applicant. To do this, they will seize the assets of the applicant and sell them to raise money that can be distributed among the creditors. The applicant will be left with the bare minimum needed to survive.
Only once the trustee informs the court that he has done everything he can to pay the creditors of the applicant will the court finally issue a discharge order. When this is done, the applicant may no longer be contacted by his creditors. The order does not cancel all his obligations, however. He will still have to pay outstanding taxes and the payments on any secured loan. Support payments must also continue.
In a large percentage of cases, applicants simply waited far too long before they too action in dealing with their financial problems. The best course of action is to seek help from a lawyer specializing in these matters as soon as it becomes clear that matters are not likely to get better. If there is no other solution than filing in terms of chapter eleven, at least the lawyer can protect his client from the tremendous stress involved.
Being bankrupt has long term consequences. The applicant will not easily obtain financing again and his credit record will be ruined for a very long time. The loss of his assets can easily lead to long term financial ruin too.
Having oneself or a business declared bankrupt is a very serious matter. It is not an easy way out of debt and other financial obligations. Courts are reluctant to grant such an order and they will first make absolutely sure that the applicant is truly unable to meet his commitments. A means test is applied and the financial dealings of the applicant will be examined.
Bankruptcies are not the only solution to financial problems. It is almost always possible to negotiate with creditors in order to extend payment periods and to lessen the monthly installments. It is even possible to approach the court to order creditors to do so. Specially trained debt counselors can help those in trouble to explore all their options and to consolidate their debt. It is definitely worth the effort.
Those that decide to go ahead with an application must accept the fact that the process is lengthy, humiliating and often embarrassing. Every aspect of the lifestyle and financial situation of the applicant will come under scrutiny. They will be forced to submit all their records and provide a detailed account of all their financial transactions. They will also have to submit a list of all their assets.
Once the court accepts the application, a trustee will be appointed without delay. Trustees have wide powers and they will concentrate on satisfying the demands of the creditors, not the needs of the applicant. To do this, they will seize the assets of the applicant and sell them to raise money that can be distributed among the creditors. The applicant will be left with the bare minimum needed to survive.
Only once the trustee informs the court that he has done everything he can to pay the creditors of the applicant will the court finally issue a discharge order. When this is done, the applicant may no longer be contacted by his creditors. The order does not cancel all his obligations, however. He will still have to pay outstanding taxes and the payments on any secured loan. Support payments must also continue.
In a large percentage of cases, applicants simply waited far too long before they too action in dealing with their financial problems. The best course of action is to seek help from a lawyer specializing in these matters as soon as it becomes clear that matters are not likely to get better. If there is no other solution than filing in terms of chapter eleven, at least the lawyer can protect his client from the tremendous stress involved.
Being bankrupt has long term consequences. The applicant will not easily obtain financing again and his credit record will be ruined for a very long time. The loss of his assets can easily lead to long term financial ruin too.
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