Financial markets everywhere in the world are in turmoil. Currencies fluctuate, the prices of commodities are unreliable and many businesses are forced to let workers go. This has resulted in more and more people finding themselves in a situation where they cannot cope financially any longer. They struggle to make ends meet and they do not know how to respond to the many demands of their creditors. In such cases bankruptcy may be a solution, but when applying in terms of Chapter 7 Oakland citizens need to be very careful.
Contrary to common belief, bankruptcy is not a tool to escape the demands of creditors and it is not meant to help people to escape their financial obligations. In fact, the process is time consuming and very stressful. The applicant will have to undergo a means test to make sure that he is indeed unable to honour his financial obligations. The entire process can be humiliating.
Bankruptcy should be the very last alternative for those in serious financial trouble. It is vital to communicate with the creditors and to try to come to new arrangements with them. Most creditors will be sympathetic because they know that with a bankruptcy they will not recover their debt. If the creditors will not negotiate, it is even possible to approach the court for an order in this regard.
When considering a bankruptcy application, the private and financial life of the applicant will be laid bare and a matter for public insight. The assets and possessions of the applicant, details about his financial dealings, his liabilities and his income will all be scrutinized. This is done to make sure that the applicant is indeed unable to service his debt.
Once an application is accepted, the court will appoint a trustee to manage the rest of the process. The first step of the trustee will be to seize all the assets of the applicant and to sell them on auction. Money thus raised is distributed among the creditors. The goal of the trustee is to satisfy the demands of the creditors and to this end he enjoys wide powers of decision making.
Once the trustee report back to the court that everything possible have been done to satisfy the claims of the creditors, a discharge order will be issued. In terms of such an order no creditor may make any further demands upon the applicant. However, applicants must still honour any debt that was backed by collateral and they must still pay child support and back taxes.
Bankruptcy laws are complex and there are many pitfalls. This fact, and the fact that the process is very stressful are the main reasons why it is best to rather hire an attorney experienced in handling bankruptcies. He will manage the process calmly and do as much as he can to protect the interests of his client. In some cases the lawyer can even negotiate some leniency in certain instances.
Applying for bankruptcy is a very serious decision and applicants should understand that there are many negative long term consequences. They will struggle to obtain financing and it may take a long time to recover financially. In many circles bankruptcy is still seen as a disgrace and proof of the inability of the applicant to manage his own affairs.
Contrary to common belief, bankruptcy is not a tool to escape the demands of creditors and it is not meant to help people to escape their financial obligations. In fact, the process is time consuming and very stressful. The applicant will have to undergo a means test to make sure that he is indeed unable to honour his financial obligations. The entire process can be humiliating.
Bankruptcy should be the very last alternative for those in serious financial trouble. It is vital to communicate with the creditors and to try to come to new arrangements with them. Most creditors will be sympathetic because they know that with a bankruptcy they will not recover their debt. If the creditors will not negotiate, it is even possible to approach the court for an order in this regard.
When considering a bankruptcy application, the private and financial life of the applicant will be laid bare and a matter for public insight. The assets and possessions of the applicant, details about his financial dealings, his liabilities and his income will all be scrutinized. This is done to make sure that the applicant is indeed unable to service his debt.
Once an application is accepted, the court will appoint a trustee to manage the rest of the process. The first step of the trustee will be to seize all the assets of the applicant and to sell them on auction. Money thus raised is distributed among the creditors. The goal of the trustee is to satisfy the demands of the creditors and to this end he enjoys wide powers of decision making.
Once the trustee report back to the court that everything possible have been done to satisfy the claims of the creditors, a discharge order will be issued. In terms of such an order no creditor may make any further demands upon the applicant. However, applicants must still honour any debt that was backed by collateral and they must still pay child support and back taxes.
Bankruptcy laws are complex and there are many pitfalls. This fact, and the fact that the process is very stressful are the main reasons why it is best to rather hire an attorney experienced in handling bankruptcies. He will manage the process calmly and do as much as he can to protect the interests of his client. In some cases the lawyer can even negotiate some leniency in certain instances.
Applying for bankruptcy is a very serious decision and applicants should understand that there are many negative long term consequences. They will struggle to obtain financing and it may take a long time to recover financially. In many circles bankruptcy is still seen as a disgrace and proof of the inability of the applicant to manage his own affairs.
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