Overwhelming debt counts as one of the biggest calamities that can befall anyone. Threats and legal actions are just some of the problems those with serious financial problems have to face. Many people are the architects of their own financial problems. They simply do not manage their finances properly. But other factors, such as the weak economy, also play a role. If it is deemed inevitable to file for bankruptcy Manhattan New York NY residents should be sure that there are no other options.
Individuals and businesses can file for liquidation in terms of either Chapter 7 or Chapter 13. The process is tedious and stressful and numerous criteria must be satisfied before an application is granted. Experts agree that applicants are better off hiring an experienced attorney to handle this type of case. Trying to manage a liquidation application without legal help almost always causes additional hardship.
It is vital to understand that liquidation is not an easy route out of debilitating debt. The applicant will have to convince the courts that he deserves a chance and that he truly cannot honour his obligations. The priority of the court is to try and make sure that the losses suffered by debtors are kept to the absolute minimum and not to make sure that the applicant can continue with his present lifestyle.
Once an application for liquidation is filed the court will appoint a trustee. The main tasks of the trustee are to evaluate the estate of the applicant, to liquidate some assets in order to satisfy the demands of the debtors and to make sure that all the rules are followed. It is very important to fully cooperate with the appointed trustee and to be honest at all times.
When an application is granted it does not mean that the applicant is suddenly totally free of all his financial obligations. He still has to pay alimony, child support, outstanding taxes and other secured debts. Unsecured debt, such as credit card debt and outstanding medical bills are, however, scrapped. The law also makes provision for applicant to retain certain possessions, such as a car and clothing.
Bankruptcies have very serious consequences and applicants should gain expert advice before deciding upon this route. Once bankruptcies are granted, applicants will find it almost impossible to obtain financing for up to ten years. They will have to adjust to a new lifestyle and they will have to accept the fact that their families will have to downgrade.
Bankruptcies do not culminate in winners and losers. Everyone is a loser. Debtors seldom get all their money back and applicants lose their assets and good credit record. That is why it is very important to explore every possible alternative before filing for liquidation. In many cases it is possible to negotiate some sort of agreement whereby the applicant can honour his obligations if given time.
Far too many people end up liquidated because they did not act as soon as they realized that they have severe financial problems. Ignoring such problems is foolish in the extreme. The problem should be addressed in good time and this will often be enough to ward of long term financial hardship.
Individuals and businesses can file for liquidation in terms of either Chapter 7 or Chapter 13. The process is tedious and stressful and numerous criteria must be satisfied before an application is granted. Experts agree that applicants are better off hiring an experienced attorney to handle this type of case. Trying to manage a liquidation application without legal help almost always causes additional hardship.
It is vital to understand that liquidation is not an easy route out of debilitating debt. The applicant will have to convince the courts that he deserves a chance and that he truly cannot honour his obligations. The priority of the court is to try and make sure that the losses suffered by debtors are kept to the absolute minimum and not to make sure that the applicant can continue with his present lifestyle.
Once an application for liquidation is filed the court will appoint a trustee. The main tasks of the trustee are to evaluate the estate of the applicant, to liquidate some assets in order to satisfy the demands of the debtors and to make sure that all the rules are followed. It is very important to fully cooperate with the appointed trustee and to be honest at all times.
When an application is granted it does not mean that the applicant is suddenly totally free of all his financial obligations. He still has to pay alimony, child support, outstanding taxes and other secured debts. Unsecured debt, such as credit card debt and outstanding medical bills are, however, scrapped. The law also makes provision for applicant to retain certain possessions, such as a car and clothing.
Bankruptcies have very serious consequences and applicants should gain expert advice before deciding upon this route. Once bankruptcies are granted, applicants will find it almost impossible to obtain financing for up to ten years. They will have to adjust to a new lifestyle and they will have to accept the fact that their families will have to downgrade.
Bankruptcies do not culminate in winners and losers. Everyone is a loser. Debtors seldom get all their money back and applicants lose their assets and good credit record. That is why it is very important to explore every possible alternative before filing for liquidation. In many cases it is possible to negotiate some sort of agreement whereby the applicant can honour his obligations if given time.
Far too many people end up liquidated because they did not act as soon as they realized that they have severe financial problems. Ignoring such problems is foolish in the extreme. The problem should be addressed in good time and this will often be enough to ward of long term financial hardship.
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