There can be no doubt that bankruptcy is on the rise. More and more people and businesses simply cannot cope with the financial demands that they face. Unstable markets and currency, inflation and many other external factors contribute to this situation. When under tremendous pressure, many people start to think that bankruptcy is the only solution to their problems. However, when filing in terms of Chapter 11 Oakland applicants must make very sure that they are doing the right thing.
Bankruptcy is most certainly not a convenient loophole that can be used to escape financial obligations. It is a very strictly controlled process. The courts will not hear an application unless they are convinced that bankruptcy is the only solution still available to the applicant. To satisfy themselves in this regards, courts will examine all the records of the applicant and apply a strict means test.
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.
Few people fully understand the complexity of the bankruptcy process. That is why it is better to appoint a lawyer to handle an application. The lawyer will first consider all the alternatives, and if bankruptcy is truly the only solution, he will will handle the filing. He will also deal with the trustee and the creditors and he will help his client deal with the demands made upon him.
Bankruptcy is not meant to serve as a loophole for irresponsible people and businesses. It is designed to help those that truly fall foul of circumstances outside their control. That is why the process is so lengthy and strict.
Bankruptcy is most certainly not a convenient loophole that can be used to escape financial obligations. It is a very strictly controlled process. The courts will not hear an application unless they are convinced that bankruptcy is the only solution still available to the applicant. To satisfy themselves in this regards, courts will examine all the records of the applicant and apply a strict means test.
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.
Few people fully understand the complexity of the bankruptcy process. That is why it is better to appoint a lawyer to handle an application. The lawyer will first consider all the alternatives, and if bankruptcy is truly the only solution, he will will handle the filing. He will also deal with the trustee and the creditors and he will help his client deal with the demands made upon him.
Bankruptcy is not meant to serve as a loophole for irresponsible people and businesses. It is designed to help those that truly fall foul of circumstances outside their control. That is why the process is so lengthy and strict.
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