Global economic uncertainty, fluctuating exchange rates and inflation are just some of the reasons why more and more people are struggling to balance their finances. Bad debt is escalating and thousands of people simply cannot pay their accounts any longer. Some even face losing everything that they have worked years to accumulate. As a last resort, individuals and businesses can obtain some relief by applying for bankruptcy in Chicago.
A chapter 7 or chapter 13 application for insolvency is not a straight forward affair. The court has to consider numerous issues. The applicant must explain why he became unable to honour his obligations. The finalization of applications can take up to six months and the applicant will have to cooperate fully or face charges. The best course of action is to appoint a lawyer to deal with the matter.
Anyone that thinks that insolvency is the ideal way to get rid of debt and to escape financial responsibilities is in for a rude awakening. The rights of the creditors involved in the application must also be protected. In fact, in most cases their rights are seen as a deciding factor in the evaluation of the application. The court does not focus on making sure that the applicant will continue to enjoy a reasonable quality of life.
As soon as a court agrees to consider an insolvency application it will appoint a trustee. The trustee has wide powers and will, in most cases, immediately liquidate the estate of the applicant in order to raise cash to pay the claimants. If the applicants a business, the trustee may sell the assets or decide to keep the company going until it can be sold as a going concern. Full cooperation is expected from the applicant.
Applicants often do not know that they will remain responsible for certain financial obligations. Debts that are secured must still be honoured. Child support payments must still be made and taxes, even back taxes, are still due. The trustee will leave the applicant with some furniture, clothes, tools and in some cases his vehicle. The rest will be forfeit.
The dire consequences of insolvency can have a devastating influence upon the life of the applicant for many years. He will not be able to enter into some contracts and he will not be able to borrow money for at least ten years. His credit rating will be extremely poor. In most cases the applicant and his family will face many years of hardship and a much reduced quality of life.
Any reputable lawyer will first try every possible avenue before filing for insolvency. Many creditors are willing to accept lower payments over extended pay back periods because they will at least be paid. The lawyer can even approach the court to enforce such arrangements. He can also help his client to draw up a realistic budget that will enable him to retain at least some quality of life whilst paying his debts.
Far too many people end up in the insolvency court because they neglected to take action when they first realized that they are in trouble. It is imperative to get professional help immediately. In most cases a complete financial disaster can be averted but decisive action needs to be taken and the applicant will have to impose strict financial discipline.
A chapter 7 or chapter 13 application for insolvency is not a straight forward affair. The court has to consider numerous issues. The applicant must explain why he became unable to honour his obligations. The finalization of applications can take up to six months and the applicant will have to cooperate fully or face charges. The best course of action is to appoint a lawyer to deal with the matter.
Anyone that thinks that insolvency is the ideal way to get rid of debt and to escape financial responsibilities is in for a rude awakening. The rights of the creditors involved in the application must also be protected. In fact, in most cases their rights are seen as a deciding factor in the evaluation of the application. The court does not focus on making sure that the applicant will continue to enjoy a reasonable quality of life.
As soon as a court agrees to consider an insolvency application it will appoint a trustee. The trustee has wide powers and will, in most cases, immediately liquidate the estate of the applicant in order to raise cash to pay the claimants. If the applicants a business, the trustee may sell the assets or decide to keep the company going until it can be sold as a going concern. Full cooperation is expected from the applicant.
Applicants often do not know that they will remain responsible for certain financial obligations. Debts that are secured must still be honoured. Child support payments must still be made and taxes, even back taxes, are still due. The trustee will leave the applicant with some furniture, clothes, tools and in some cases his vehicle. The rest will be forfeit.
The dire consequences of insolvency can have a devastating influence upon the life of the applicant for many years. He will not be able to enter into some contracts and he will not be able to borrow money for at least ten years. His credit rating will be extremely poor. In most cases the applicant and his family will face many years of hardship and a much reduced quality of life.
Any reputable lawyer will first try every possible avenue before filing for insolvency. Many creditors are willing to accept lower payments over extended pay back periods because they will at least be paid. The lawyer can even approach the court to enforce such arrangements. He can also help his client to draw up a realistic budget that will enable him to retain at least some quality of life whilst paying his debts.
Far too many people end up in the insolvency court because they neglected to take action when they first realized that they are in trouble. It is imperative to get professional help immediately. In most cases a complete financial disaster can be averted but decisive action needs to be taken and the applicant will have to impose strict financial discipline.
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