Every year an increasing number of people find themselves in a situation so dire that they are no longer able to honour their financial commitments. There are many reasons for this trend. The economy is shaky, businesses are laying off people and many people simply live beyond their means. In some severe cases insolvency may turn out to be the only solution. Helped by a bankruptcy attorney Washington DC citizens can find relief from the courts.
Applications for liquidation is normally made in terms of chapter 7 or chapter 13. Applications take time to process and the courts are often hesitant in granting orders before a thorough investigation has not been concluded. Nobody should embark on this route without legal help. It is best to appoint a lawyer experienced in handling insolvency cases to deal with the matter.
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.
Many applicants do not realize that an insolvency order does not mean that they do not still have outstanding debt. Secured loans, for example, are not affected by an insolvency order. Back taxes, child support payments must also be paid even if an insolvency order was issued. The applicant will, , however, be allowed to retain his car, basic items of furniture and his clothing.
Experienced lawyers that have the interests of their clients at heart will advise them on the many negative consequences of insolvency. The client will have a serious black mark on his credit record for ten years. During this period he will not be able to borrow money or finance any purchases. He will have to downgrade his lifestyle and he will have to submit to financial monitoring.
Reputable lawyers will do everything they can to find alternative solutions before filing a chapter 7 or 13 application. Debtors are often willing to negotiate new pay back plans with smaller monthly payments over a longer time. It is even possible to obtain a court order obliging debtors to negotiate with the applicant. In such cases the applicant is placed under administration and his lawyer will handle his financial affairs.
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.
Applications for liquidation is normally made in terms of chapter 7 or chapter 13. Applications take time to process and the courts are often hesitant in granting orders before a thorough investigation has not been concluded. Nobody should embark on this route without legal help. It is best to appoint a lawyer experienced in handling insolvency cases to deal with the matter.
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.
Many applicants do not realize that an insolvency order does not mean that they do not still have outstanding debt. Secured loans, for example, are not affected by an insolvency order. Back taxes, child support payments must also be paid even if an insolvency order was issued. The applicant will, , however, be allowed to retain his car, basic items of furniture and his clothing.
Experienced lawyers that have the interests of their clients at heart will advise them on the many negative consequences of insolvency. The client will have a serious black mark on his credit record for ten years. During this period he will not be able to borrow money or finance any purchases. He will have to downgrade his lifestyle and he will have to submit to financial monitoring.
Reputable lawyers will do everything they can to find alternative solutions before filing a chapter 7 or 13 application. Debtors are often willing to negotiate new pay back plans with smaller monthly payments over a longer time. It is even possible to obtain a court order obliging debtors to negotiate with the applicant. In such cases the applicant is placed under administration and his lawyer will handle his financial affairs.
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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