Financial markets everywhere in the world are in turmoil. Currencies fluctuate, the prices of commodities are unreliable and many businesses are forced to let workers go. This has resulted in more and more people finding themselves in a situation where they cannot cope financially any longer. They struggle to make ends meet and they do not know how to respond to the many demands of their creditors. In such cases bankruptcy may be a solution, but when applying in terms of Chapter 7 Oakland citizens need to be very careful.
Many people still thin that bankruptcy is a disgrace, but many others think that this is a sure and easy way to get out of debt. Bankruptcy is not a disgrace and it most definitely is not an easy solution to serious financial troubles. The applicant will have to convince the court that he cannot honour his obligations and the court will order a means test to make sure that this is indeed the case.
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.
The first step that the court will take is to appoint a trustee. This trustee has very wide powers. His job is not to look after the welfare of the applicant, but rather to do everything possible to make sure that the creditors of the applicant are paid. To this end the trustee will immediately seize the assets of the applicant to be sold on open auction. In the case of businesses, the employees will lose their jobs.
Once the trustee has exhausted every avenue of raising cash to pay the creditors of the applicant, the court will finally issue a discharge. Once this is done no creditor may make any further demands upon the applicant. However, the applicant will not escape all obligations. He will still have to pay outstanding taxes and child support, for example. Loans backed by collateral will also have to be paid back.
The entire process of applying for bankruptcy is acutely stressful and most applicants cannot think rationally during this time. That is why it is best to leave the application in the hands of an experienced attorney. The attorney will handle negotiations with the trustee and creditors objectively and he will make sure that all the rules are followed during the process.
Applying for bankruptcy is a very serious decision and applicants should understand that there are many negative long term consequences. They will struggle to obtain financing and it may take a long time to recover financially. In many circles bankruptcy is still seen as a disgrace and proof of the inability of the applicant to manage his own affairs.
Many people still thin that bankruptcy is a disgrace, but many others think that this is a sure and easy way to get out of debt. Bankruptcy is not a disgrace and it most definitely is not an easy solution to serious financial troubles. The applicant will have to convince the court that he cannot honour his obligations and the court will order a means test to make sure that this is indeed the case.
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.
The first step that the court will take is to appoint a trustee. This trustee has very wide powers. His job is not to look after the welfare of the applicant, but rather to do everything possible to make sure that the creditors of the applicant are paid. To this end the trustee will immediately seize the assets of the applicant to be sold on open auction. In the case of businesses, the employees will lose their jobs.
Once the trustee has exhausted every avenue of raising cash to pay the creditors of the applicant, the court will finally issue a discharge. Once this is done no creditor may make any further demands upon the applicant. However, the applicant will not escape all obligations. He will still have to pay outstanding taxes and child support, for example. Loans backed by collateral will also have to be paid back.
The entire process of applying for bankruptcy is acutely stressful and most applicants cannot think rationally during this time. That is why it is best to leave the application in the hands of an experienced attorney. The attorney will handle negotiations with the trustee and creditors objectively and he will make sure that all the rules are followed during the process.
Applying for bankruptcy is a very serious decision and applicants should understand that there are many negative long term consequences. They will struggle to obtain financing and it may take a long time to recover financially. In many circles bankruptcy is still seen as a disgrace and proof of the inability of the applicant to manage his own affairs.
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