As global markets and currencies continue to fluctuate, more and more individuals and businesses struggle to survive financially. There is no choice other than to try and cope by cutting cost, looking at ways in which to raise more money and negotiating with creditors. In many cases, however, the situation becomes so desperate that the individual or business simply cannot cope any longer. In such cases, by filing for Ch 11 bankruptcy TN applicants can perhaps make a brand new beginning.
It is a huge misconception that being declared bankrupt will release the applicant from all financial obligations. It is certainly not the case. The courts are extremely careful when they vet applicants and they first need to be sure that there is no other remedy to the dilemma. To this end they will insist upon a means test to see if the applicant can, in any way, actually honor his obligations even if it requires some sacrifices.
Bankruptcies are not the only solution to financial problems. It is almost always possible to negotiate with creditors in order to extend payment periods and to lessen the monthly installments. It is even possible to approach the court to order creditors to do so. Specially trained debt counselors can help those in trouble to explore all their options and to consolidate their debt. It is definitely worth the effort.
It is also important to know that the application process is grueling and lengthy. The applicant will be submitted to a detailed examination of his finances, his life style, his spending habits and his income. His assets will be catalogued and he will be prohibited from making a single further financial commitment. Every single record demanded by the court will have to be submitted.
Once the court accepts an application, it will move fast to appoint a qualified trustee. The job of the trustee is to oversee the process whereby all the assets of the applicant is confiscated and sold. Only essential assets necessary for survival will be left. Money thus raised is distributed to the creditors. The trustee is not there to protect the applicant, but rather the creditors.
As soon as the trustee is satisfied that everything possible has been done to satisfy the demands of the creditors, the court will finally issue a discharge. Once this is done, creditors may no longer make demands upon the applicant. However, not all obligations are erased with a discharge order. Secured loans, child support payment, back taxes and maintenance payments must still be paid.
It is only natural for human beings to ignore problems when they first manifest themselves, hoping that matters will be resolved in good time. This is seldom the case, unfortunately. When it becomes clear that there are financial troubles, the very best thing to do is to seek help immediately. In fact, most bankruptcies can be avoided if only the applicant acted in time.
The bankruptcy laws are not designed to protect those that find themselves in serious financial trouble. It is there to protect the interests of the creditors. Being bankrupt has serious consequences and it is important to make absolutely sure there is no alternative.
It is a huge misconception that being declared bankrupt will release the applicant from all financial obligations. It is certainly not the case. The courts are extremely careful when they vet applicants and they first need to be sure that there is no other remedy to the dilemma. To this end they will insist upon a means test to see if the applicant can, in any way, actually honor his obligations even if it requires some sacrifices.
Bankruptcies are not the only solution to financial problems. It is almost always possible to negotiate with creditors in order to extend payment periods and to lessen the monthly installments. It is even possible to approach the court to order creditors to do so. Specially trained debt counselors can help those in trouble to explore all their options and to consolidate their debt. It is definitely worth the effort.
It is also important to know that the application process is grueling and lengthy. The applicant will be submitted to a detailed examination of his finances, his life style, his spending habits and his income. His assets will be catalogued and he will be prohibited from making a single further financial commitment. Every single record demanded by the court will have to be submitted.
Once the court accepts an application, it will move fast to appoint a qualified trustee. The job of the trustee is to oversee the process whereby all the assets of the applicant is confiscated and sold. Only essential assets necessary for survival will be left. Money thus raised is distributed to the creditors. The trustee is not there to protect the applicant, but rather the creditors.
As soon as the trustee is satisfied that everything possible has been done to satisfy the demands of the creditors, the court will finally issue a discharge. Once this is done, creditors may no longer make demands upon the applicant. However, not all obligations are erased with a discharge order. Secured loans, child support payment, back taxes and maintenance payments must still be paid.
It is only natural for human beings to ignore problems when they first manifest themselves, hoping that matters will be resolved in good time. This is seldom the case, unfortunately. When it becomes clear that there are financial troubles, the very best thing to do is to seek help immediately. In fact, most bankruptcies can be avoided if only the applicant acted in time.
The bankruptcy laws are not designed to protect those that find themselves in serious financial trouble. It is there to protect the interests of the creditors. Being bankrupt has serious consequences and it is important to make absolutely sure there is no alternative.
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