There is a steady increase in the number of businesses and individuals that apply for bankruptcy. In some cases such applications are the result of financial irresponsibility, but in many cases applicants simply find themselves in very severe financial trouble due to circumstances completely out of their control. In most cases applicants approach the courts when they no longer see any way in which they can survive financially. When applying according to Chapter 11 Oakland applicants are taking a very serious step.
Anyone that files for bankruptcy, thinking that it is a quick and easy way out of their financial responsibilities is in for a very rude awakening. The courts do not issue bankruptcy orders without doing a thorough investigations and before applying a means test. The court must be satisfied that the applicant has no other choice but to make his application. The entire process can be lengthy and very stressful.
Bankruptcy should always be the absolutely last resort. There are alternatives. Those in trouble should communicate with their creditors and try to negotiate more favourable payback schedules. In some cases they can even approach the court to order a review of they payback plans with their creditors. In many cases it is possible to obtain finance in order to consolidate all the debt.
Applicants need to prepare themselves for intensive scrutiny. Their financial histories will be examined and they will be asked to explain the reasoning behind some of their previous financial decisions. They will have to make all their records available to the court and they will have to list all their assets and belongings, regardless of their value. The entire process can take a long time and it is very stressful.
The court will appoint a trustee as soon as it agrees to hear the application. The role of the trustee is to try and satisfy all the demands of the creditors. To this end he will seize and sell assets, leaving families with only the absolute minimum that will be necessary for survival. In the case of businesses he may decide to close them and to sell the assets.
The court will finally issue a discharge when it is convinced that every effort has been made to reimburse the creditors. Once this is done, creditors may not make further demands on the applicant. This does not release the applicant from his obligations regarding tax, loans that were secured by assets, child support payments and fines. These obligations remain and must be honoured.
Because the process of applying for bankruptcy is so stressful and complex, it is better to leave matters in the hands of an experienced attorney that specialize in these cases. He can often negotiate more lenient terms from the trustee and he will guide his client throughout the process. He will also advise his client about alternative solutions before finally filing for bankruptcy.
Contrary to popular belief, bankruptcy is not easily granted. Once granted, applicants will have to accept the consequences. They will not easily obtain finance and their financial dealings will be watched very carefully for a number of years.
Anyone that files for bankruptcy, thinking that it is a quick and easy way out of their financial responsibilities is in for a very rude awakening. The courts do not issue bankruptcy orders without doing a thorough investigations and before applying a means test. The court must be satisfied that the applicant has no other choice but to make his application. The entire process can be lengthy and very stressful.
Bankruptcy should always be the absolutely last resort. There are alternatives. Those in trouble should communicate with their creditors and try to negotiate more favourable payback schedules. In some cases they can even approach the court to order a review of they payback plans with their creditors. In many cases it is possible to obtain finance in order to consolidate all the debt.
Applicants need to prepare themselves for intensive scrutiny. Their financial histories will be examined and they will be asked to explain the reasoning behind some of their previous financial decisions. They will have to make all their records available to the court and they will have to list all their assets and belongings, regardless of their value. The entire process can take a long time and it is very stressful.
The court will appoint a trustee as soon as it agrees to hear the application. The role of the trustee is to try and satisfy all the demands of the creditors. To this end he will seize and sell assets, leaving families with only the absolute minimum that will be necessary for survival. In the case of businesses he may decide to close them and to sell the assets.
The court will finally issue a discharge when it is convinced that every effort has been made to reimburse the creditors. Once this is done, creditors may not make further demands on the applicant. This does not release the applicant from his obligations regarding tax, loans that were secured by assets, child support payments and fines. These obligations remain and must be honoured.
Because the process of applying for bankruptcy is so stressful and complex, it is better to leave matters in the hands of an experienced attorney that specialize in these cases. He can often negotiate more lenient terms from the trustee and he will guide his client throughout the process. He will also advise his client about alternative solutions before finally filing for bankruptcy.
Contrary to popular belief, bankruptcy is not easily granted. Once granted, applicants will have to accept the consequences. They will not easily obtain finance and their financial dealings will be watched very carefully for a number of years.
About the Author:
You can get valuable tips for picking a Chapter 11 Oakland attorney and more information about a reliable lawyer at http://www.centralcoastbankruptcy.com/chapter-11.html now.
No comments:
Post a Comment