The number of people that approach the courts for liquidation orders rise every year. More and more people find themselves in financial difficulties so severe that they cannot pay their debts any longer. There are many factors that contribute to this problem. Companies are retrenching workers, the economy is sluggish and the currency is unstable. When obtaining the services of a bankruptcy attorney Washington DC clients can rest assured that some solution to their woes will be found.
Both individuals and companies can file in terms of either chapter 7 or chapter 13. It is not just a matter of filing for insolvency, however. The process is lengthy and the court has to consider many criteria before it will grant an order in favour of the applicant. It is a stressful and emotional process and those that are in this unfortunate situation is best off by hiring a lawyer to handle the matter.
It is a very big mistake to think that a liquidation order is a convenient way of getting rid of debt. This is not so. The court has the interest of the debtors at heart and it needs to be convinced that their is no way in which the applicant can honour his obligations. The court will also apply a means test and may order a rescheduled payment plan rather than granting a liquidation order.
A trustee with wide powers is appointed as soon as the court accepts an application. The role of the trustee is to manage the liquidation process and to satisfy the claims of the debtors. To this end he will attach all the assets of the applicant. In the case of business he can decide whether he wants to keep the business running, sell it as a going concern or simply strip it of its assets.
Even when an application is granted all the debts of the applicant do not disappear. Certain financial obligation remain valid even when a liquidation order has been granted. Taxes, child support payments and secured loans remain the responsibility of the applicant. However, the applicant is normally allowed to keep some basic possessions such as a car.
The lawyer will make very sure that his client understands and accepts the serious consequences of liquidation before he will file the application. His credit record will be poor and he will not be able to apply for a loan for at least ten years. During the rehabilitation period his financial circumstances may be reviewed at any time. He will have to downgrade his lifestyle too.
Because a liquidation order can have such serious implications the lawyer will try to find alternative solutions. In many cases he will be able to negotiate with debtors and agree to new payment plans whereby the client will by smaller amounts over a longer period. In most cases such a solution is far better than a liquidation order.
It is a sad fact that many people land in severe financial difficulties because they waited too long before they took action. It is best to approach a lawyer as soon as it becomes apparent that financial difficulties are inevitable. The sooner the lawyer addresses the issue, the easier it is to work out a solution.
Both individuals and companies can file in terms of either chapter 7 or chapter 13. It is not just a matter of filing for insolvency, however. The process is lengthy and the court has to consider many criteria before it will grant an order in favour of the applicant. It is a stressful and emotional process and those that are in this unfortunate situation is best off by hiring a lawyer to handle the matter.
It is a very big mistake to think that a liquidation order is a convenient way of getting rid of debt. This is not so. The court has the interest of the debtors at heart and it needs to be convinced that their is no way in which the applicant can honour his obligations. The court will also apply a means test and may order a rescheduled payment plan rather than granting a liquidation order.
A trustee with wide powers is appointed as soon as the court accepts an application. The role of the trustee is to manage the liquidation process and to satisfy the claims of the debtors. To this end he will attach all the assets of the applicant. In the case of business he can decide whether he wants to keep the business running, sell it as a going concern or simply strip it of its assets.
Even when an application is granted all the debts of the applicant do not disappear. Certain financial obligation remain valid even when a liquidation order has been granted. Taxes, child support payments and secured loans remain the responsibility of the applicant. However, the applicant is normally allowed to keep some basic possessions such as a car.
The lawyer will make very sure that his client understands and accepts the serious consequences of liquidation before he will file the application. His credit record will be poor and he will not be able to apply for a loan for at least ten years. During the rehabilitation period his financial circumstances may be reviewed at any time. He will have to downgrade his lifestyle too.
Because a liquidation order can have such serious implications the lawyer will try to find alternative solutions. In many cases he will be able to negotiate with debtors and agree to new payment plans whereby the client will by smaller amounts over a longer period. In most cases such a solution is far better than a liquidation order.
It is a sad fact that many people land in severe financial difficulties because they waited too long before they took action. It is best to approach a lawyer as soon as it becomes apparent that financial difficulties are inevitable. The sooner the lawyer addresses the issue, the easier it is to work out a solution.
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