Life is composed of different paths that people need to traverse financially, medically, psychologically, academically and in other spheres of life. Financially, many people find themselves with huge debts that they are required to pay or risk having their property repossessed, wages garnished, or some other serious action taken. In such a case, most people usually consider filing for bankruptcy. When in need of Chapter 11 Monterey should be visited.
While applying for bankruptcy saves one from harsh actions, it is crucial to understand how the process works. One must understand what happens afterwards and the circumstances under which it becomes enforceable. Some crucial facts about this issue will be discussed in this article. The definition of insolvency will also be discussed.
The simplest way of defining bankruptcy is the inability of a company or individual to meet their financial obligations. This situation can be caused by several reasons including divorce, natural tragedies, diseases, and poor investment decisions among many others. When it happens, the concerned party requires legal protection provided by the law against creditors. History shows that this strategy has been used by lots of people to prevent creditors from possessing their assets.
When a person files for insolvency, the law provides them with either permanent or temporal legal protection against repayment of debts accumulated prior to filing of the petition. All collection proceedings and actions are normally suspended from the date the petition is filed in court. A part from elimination of the debts, arrangements may be made on how the debtor will repay the money they owe. All such arrangements are made when the debtor is enjoying bankruptcy protection.
Filing for insolvency is a difficult process. To be granted bankruptcy status, individuals must give proof that they are truly not able to repay their debts. That proof is normally presented to a judge in a court of law. Individuals might require a bankruptcy attorney for legal counsel and representation during this process.
After a comprehensive determination, the court makes its determination as to whether the individual qualifies to be listed as bankrupt. If this happens, then a court order is issued to discharge all debts that are listed in the bankruptcy filing. Once the court order is given, creditors are not allowed to make any collections or lay any claims on future earnings of the individual.
It is possible for creditors to dispute the court order regarding the insolvency of the individual if there is cause for it. For instance, in the case where someone owns a house that was issued as collateral for a loan, the creditor may take the house as repayment for the loan. Certain debts or payments cannot be discharged in an insolvency claim, including student loans, alimony, child support, and taxes.
If a person has assets under their name while filing for insolvency, it is required of them to give them up. Normally, such assets are sold then the money is used to pay creditors. The court might refuse to discharge the owed debts if one tries to either conceal or transfer assets prior to their filing for insolvency. A person must also discuss with their attorney the various factors which come to play during the proceedings.
While applying for bankruptcy saves one from harsh actions, it is crucial to understand how the process works. One must understand what happens afterwards and the circumstances under which it becomes enforceable. Some crucial facts about this issue will be discussed in this article. The definition of insolvency will also be discussed.
The simplest way of defining bankruptcy is the inability of a company or individual to meet their financial obligations. This situation can be caused by several reasons including divorce, natural tragedies, diseases, and poor investment decisions among many others. When it happens, the concerned party requires legal protection provided by the law against creditors. History shows that this strategy has been used by lots of people to prevent creditors from possessing their assets.
When a person files for insolvency, the law provides them with either permanent or temporal legal protection against repayment of debts accumulated prior to filing of the petition. All collection proceedings and actions are normally suspended from the date the petition is filed in court. A part from elimination of the debts, arrangements may be made on how the debtor will repay the money they owe. All such arrangements are made when the debtor is enjoying bankruptcy protection.
Filing for insolvency is a difficult process. To be granted bankruptcy status, individuals must give proof that they are truly not able to repay their debts. That proof is normally presented to a judge in a court of law. Individuals might require a bankruptcy attorney for legal counsel and representation during this process.
After a comprehensive determination, the court makes its determination as to whether the individual qualifies to be listed as bankrupt. If this happens, then a court order is issued to discharge all debts that are listed in the bankruptcy filing. Once the court order is given, creditors are not allowed to make any collections or lay any claims on future earnings of the individual.
It is possible for creditors to dispute the court order regarding the insolvency of the individual if there is cause for it. For instance, in the case where someone owns a house that was issued as collateral for a loan, the creditor may take the house as repayment for the loan. Certain debts or payments cannot be discharged in an insolvency claim, including student loans, alimony, child support, and taxes.
If a person has assets under their name while filing for insolvency, it is required of them to give them up. Normally, such assets are sold then the money is used to pay creditors. The court might refuse to discharge the owed debts if one tries to either conceal or transfer assets prior to their filing for insolvency. A person must also discuss with their attorney the various factors which come to play during the proceedings.
About the Author:
You can get a summary of the things to keep in mind when picking a Chapter 11 Monterey attorney at http://www.centralcoastbankruptcy.com/bankruptcy-overview.html right now.
Tidak ada komentar:
Posting Komentar