Over the past few years, applications for bankruptcy have risen sharply. Individuals and businesses get deeper and deeper into debt and they reach a stage where they simply cannot cope with the financial demands made upon them. In addition, they have to deal with constant demands and threats from creditors while trying to figure out how to make ends meet. Many consider bankruptcy. When thinking of an application in terms of Chapter 7 Oakland citizens need to obtain professional advice.
Contrary to common belief, bankruptcy is not a tool to escape the demands of creditors and it is not meant to help people to escape their financial obligations. In fact, the process is time consuming and very stressful. The applicant will have to undergo a means test to make sure that he is indeed unable to honour his financial obligations. The entire process can be humiliating.
Bankruptcy should be the very last alternative for those in serious financial trouble. It is vital to communicate with the creditors and to try to come to new arrangements with them. Most creditors will be sympathetic because they know that with a bankruptcy they will not recover their debt. If the creditors will not negotiate, it is even possible to approach the court for an order in this regard.
When considering an application, the court requires the applicant to submit full details of his income, his expenditure, his liabilities, assets and possessions. Even his lifestyle will come under scrutiny. This can be humiliating because all this information will be in the public domain. This evaluation process can take a long time because the court needs to be satisfied that bankruptcy is truly the only option.
Once the court is satisfied, a trustee will be appointed. This trustee is authorized to make a wide range of decisions. His focus is on ways and means to raise the money necessary to pay the debts of the applicant. The needs and welfare of the applicant is not his concern.He will therefore confiscate all assets and sell them on an auction. Business applicants will have to close their doors.
Once the trustee report back to the court that everything possible have been done to satisfy the claims of the creditors, a discharge order will be issued. In terms of such an order no creditor may make any further demands upon the applicant. However, applicants must still honour any debt that was backed by collateral and they must still pay child support and back taxes.
Bankruptcy laws are complex and there are many pitfalls. This fact, and the fact that the process is very stressful are the main reasons why it is best to rather hire an attorney experienced in handling bankruptcies. He will manage the process calmly and do as much as he can to protect the interests of his client. In some cases the lawyer can even negotiate some leniency in certain instances.
Bankruptcy laws are not designed to protect those that manage their financial poorly. It is designed to provide those in dire financial straits with a chance to start anew with a clean slate. It is important to keep in mind, however, that there are many unpleasant long term consequences to be suffered after bankruptcy.
Contrary to common belief, bankruptcy is not a tool to escape the demands of creditors and it is not meant to help people to escape their financial obligations. In fact, the process is time consuming and very stressful. The applicant will have to undergo a means test to make sure that he is indeed unable to honour his financial obligations. The entire process can be humiliating.
Bankruptcy should be the very last alternative for those in serious financial trouble. It is vital to communicate with the creditors and to try to come to new arrangements with them. Most creditors will be sympathetic because they know that with a bankruptcy they will not recover their debt. If the creditors will not negotiate, it is even possible to approach the court for an order in this regard.
When considering an application, the court requires the applicant to submit full details of his income, his expenditure, his liabilities, assets and possessions. Even his lifestyle will come under scrutiny. This can be humiliating because all this information will be in the public domain. This evaluation process can take a long time because the court needs to be satisfied that bankruptcy is truly the only option.
Once the court is satisfied, a trustee will be appointed. This trustee is authorized to make a wide range of decisions. His focus is on ways and means to raise the money necessary to pay the debts of the applicant. The needs and welfare of the applicant is not his concern.He will therefore confiscate all assets and sell them on an auction. Business applicants will have to close their doors.
Once the trustee report back to the court that everything possible have been done to satisfy the claims of the creditors, a discharge order will be issued. In terms of such an order no creditor may make any further demands upon the applicant. However, applicants must still honour any debt that was backed by collateral and they must still pay child support and back taxes.
Bankruptcy laws are complex and there are many pitfalls. This fact, and the fact that the process is very stressful are the main reasons why it is best to rather hire an attorney experienced in handling bankruptcies. He will manage the process calmly and do as much as he can to protect the interests of his client. In some cases the lawyer can even negotiate some leniency in certain instances.
Bankruptcy laws are not designed to protect those that manage their financial poorly. It is designed to provide those in dire financial straits with a chance to start anew with a clean slate. It is important to keep in mind, however, that there are many unpleasant long term consequences to be suffered after bankruptcy.
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