It is a sad fact that every year there are more people that feel that that they can no longer cope with their financial responsibilities. They are under pressure from creditors and they start to feel that bankruptcy is the only way out of the crisis. There are indeed many circumstances that can cause a family to face financial demands that they simply cannot hope to satisfy. When filing for bankruptcy under Chapter 7 Monterey residents can, in some cases, solve their problems.
It is a common mistake to think that bankruptcy is an easy solution for financial troubles. It is all but that. It is a stressful process and applicants will have to live with the consequences for many years. Also, courts are not inclined to grant bankruptcy orders without performing a means test and evaluating the circumstances of the applicant in great detail. Citizens are expected to honour their obligations.
There are alternatives to bankruptcy. Those is financial dire straits should never ignore their problems. Instead, the should communicate with their creditors. In many cases it is possible to make arrangements for a new schedule of payments. There are even cases where the courts can be approached to order revised payment schedules. Bankruptcy should really be the very last resort because the consequences of such an order can haunt applicants for years.
If there is no alternative, applicants must know that they are in for a gruelling time. Their application must be accompanied by detailed financial records. They have to list all their creditors, their income, their expenditures and every last one of their assets and possessions. They have to provide valid reasons why bankruptcy is seen as their only resort. This takes time and can be very stressful.
The next step is the appointment of an independent trustee. His task is to look after the interests of creditors, not those of the applicant. In cases where the applicant is a business entity, the trustee may decide to sell the business as a going concern or to simply sells its assets. In the case of private individuals, all assets that are not exempted by law is sold on open auction and the income thus generated is distributed.
At the end of the entire process the applicant will be issued with a discharge. No creditor will be able to take action against him again and no new claims may be made upon him. However, certain obligations, such as taxes due, child support payments and maintenance will never disappear. Debt on contracts that were covered by collateral will also be excluded from the discharge order.
Many applicants do not realize just how stressful the bankruptcy application process can be. The best option is to appoint a lawyer specializing in such matters. Brutal honesty is vital, however. Applicants that lie to the court or the trustee can be severely punished. Applicants should also understand and accept the serious consequences of being declared bankrupt.
Financial problems can be devastating and debilitating. Bankruptcy is most certainly not the only option but if there are no other avenues to follow, it can provide relief for those that really need it. It is not an easy way out of trouble, but for certain people it can be a way to start again from scratch.
It is a common mistake to think that bankruptcy is an easy solution for financial troubles. It is all but that. It is a stressful process and applicants will have to live with the consequences for many years. Also, courts are not inclined to grant bankruptcy orders without performing a means test and evaluating the circumstances of the applicant in great detail. Citizens are expected to honour their obligations.
There are alternatives to bankruptcy. Those is financial dire straits should never ignore their problems. Instead, the should communicate with their creditors. In many cases it is possible to make arrangements for a new schedule of payments. There are even cases where the courts can be approached to order revised payment schedules. Bankruptcy should really be the very last resort because the consequences of such an order can haunt applicants for years.
If there is no alternative, applicants must know that they are in for a gruelling time. Their application must be accompanied by detailed financial records. They have to list all their creditors, their income, their expenditures and every last one of their assets and possessions. They have to provide valid reasons why bankruptcy is seen as their only resort. This takes time and can be very stressful.
The next step is the appointment of an independent trustee. His task is to look after the interests of creditors, not those of the applicant. In cases where the applicant is a business entity, the trustee may decide to sell the business as a going concern or to simply sells its assets. In the case of private individuals, all assets that are not exempted by law is sold on open auction and the income thus generated is distributed.
At the end of the entire process the applicant will be issued with a discharge. No creditor will be able to take action against him again and no new claims may be made upon him. However, certain obligations, such as taxes due, child support payments and maintenance will never disappear. Debt on contracts that were covered by collateral will also be excluded from the discharge order.
Many applicants do not realize just how stressful the bankruptcy application process can be. The best option is to appoint a lawyer specializing in such matters. Brutal honesty is vital, however. Applicants that lie to the court or the trustee can be severely punished. Applicants should also understand and accept the serious consequences of being declared bankrupt.
Financial problems can be devastating and debilitating. Bankruptcy is most certainly not the only option but if there are no other avenues to follow, it can provide relief for those that really need it. It is not an easy way out of trouble, but for certain people it can be a way to start again from scratch.
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