Few things are as stressful as realizing that one cannot cope financially any longer. Sadly, an increasing number of people find themselves in this very unenviable position. Recession, job losses, a weak economy and often very poor personal financial management cause families and businesses to face utter ruin. Sometimes this lead to insolvency. When represented by a reputable bankruptcy attorney Washington DC clients can at least rest assured that their affairs are in good hands.
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.
It would be a huge mistake to think that an application for insolvency will prove to be a quick and convenient way in which to abdicate financial obligations. The court will thoroughly investigate all the affairs of the applicant and consider various ways in which the applicant can remain responsible for his obligations. The priority of the court is not to protect the applicant but rather to protect the interests of the debtors of the applicant.
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.
Bankruptcy is a serious matter and should be avoided if at all possible. Many people wait until it is too late for alternative solutions to be found. It is certainly best to obtain professional help as soon as it becomes clear that serious financial problems are looming.
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.
It would be a huge mistake to think that an application for insolvency will prove to be a quick and convenient way in which to abdicate financial obligations. The court will thoroughly investigate all the affairs of the applicant and consider various ways in which the applicant can remain responsible for his obligations. The priority of the court is not to protect the applicant but rather to protect the interests of the debtors of the applicant.
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.
Bankruptcy is a serious matter and should be avoided if at all possible. Many people wait until it is too late for alternative solutions to be found. It is certainly best to obtain professional help as soon as it becomes clear that serious financial problems are looming.
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