By Karen Edwards Life is composed of different paths that people need to traverse financially, medically, psychologically, academically an...
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.
As bankruptcy filing can save an individual from harsh actions, it is essential to have proper knowledge of how the process does work. One should know the circumstances under which insolvency filing can be enforceable by the law and what comes after filing. This article presents important facts concerning this issue. In addition, it will offer comprehensive definition of insolvency.
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 one files for insolvency, the law provides temporary or permanent legal protection against repaying the debts that were accumulated before the date of filing the petition. Any collection actions and proceedings are usually suspended from that date. Besides eliminating the debts, a plan may be made for the debtor to repay the amount they owe. Repayment plans are made while the debtor is under bankruptcy protection.
Many people assume that filing for insolvency is easy while it is not. In order for the application to go through one is required to provide proof showing their inability to repay debts. Normally, the evidence is presented in a court of law before a judge. A person may require the counsel of a bankruptcy attorney during the hearing of their case.
After comprehensive determination, a court determines whether the person qualifies to be considered as bankrupt. If this is the case, a court order is given to discharge all the debts listed in bankruptcy filing. After the court order has been given, all creditors are prevented from making collections or claims on the future earnings of the person involved.
When there is sufficient cause, creditors can successfully dispute the order regarding insolvency issued by court regarding a person. For example, in the event that a person owns a house that they used as collateral, the creditor may take possession of the property as payment for the loan. Also, certain debts cannot are not covered under insolvency claim. Such debts include child support, taxes, alimony, and student loans.
In case one has assets to their name when they file for insolvency, they are usually required to give them up. The assets are then sold and used to repay creditors. Also, in case one makes attempts to transfer or conceal assets before they file for insolvency, the court may refuse to discharge the debts owed. There are several other factors that come to play during insolvency proceedings that one must discuss with their lawyers.
As bankruptcy filing can save an individual from harsh actions, it is essential to have proper knowledge of how the process does work. One should know the circumstances under which insolvency filing can be enforceable by the law and what comes after filing. This article presents important facts concerning this issue. In addition, it will offer comprehensive definition of insolvency.
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 one files for insolvency, the law provides temporary or permanent legal protection against repaying the debts that were accumulated before the date of filing the petition. Any collection actions and proceedings are usually suspended from that date. Besides eliminating the debts, a plan may be made for the debtor to repay the amount they owe. Repayment plans are made while the debtor is under bankruptcy protection.
Many people assume that filing for insolvency is easy while it is not. In order for the application to go through one is required to provide proof showing their inability to repay debts. Normally, the evidence is presented in a court of law before a judge. A person may require the counsel of a bankruptcy attorney during the hearing of their case.
After comprehensive determination, a court determines whether the person qualifies to be considered as bankrupt. If this is the case, a court order is given to discharge all the debts listed in bankruptcy filing. After the court order has been given, all creditors are prevented from making collections or claims on the future earnings of the person involved.
When there is sufficient cause, creditors can successfully dispute the order regarding insolvency issued by court regarding a person. For example, in the event that a person owns a house that they used as collateral, the creditor may take possession of the property as payment for the loan. Also, certain debts cannot are not covered under insolvency claim. Such debts include child support, taxes, alimony, and student loans.
In case one has assets to their name when they file for insolvency, they are usually required to give them up. The assets are then sold and used to repay creditors. Also, in case one makes attempts to transfer or conceal assets before they file for insolvency, the court may refuse to discharge the debts owed. There are several other factors that come to play during insolvency proceedings that one must discuss with their lawyers.
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.
Aucun commentaire