There are many reasons why an increasing number of people find themselves in financial difficulties so severe that they can no longer pay their debts. The global economy remains unstable, inflation is high and retrenchments are increasing at an alarming rate. Anyone in such a situation is under severe pressure from their creditors and even from their own families. In some cases, an application for bankruptcy in Chicago can provide some relief.
One of the main reasons why it is so important to get a lawyer to handle a chapter 7 or 13 application is that the entire process can be extremely stressful. It will take at least three, but more likely six months to see a final result. The courts do not grant applications without exhausting evaluation of all the factors involved. The court needs to keep the rights of all parties in mind.
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.
Once a court agrees to consider an application in terms of Chapters 7 or 13, it will immediately appoint a trustee to oversee the process. The main priority of the trustee is to see to it that claimants receive what is due to them, or at least as large a percentage as possible. To this end he will sell the assets of the applicant at an open auction and liquidate all his investments and savings.
Many applicants are disillusioned when they find out that an insolvency order does not make their financial troubles disappear. This is simply not the case. Obligations such as back taxes, child support payments, secured loans and other debts cannot be set aside or cancelled by the court. All the applicant will be allowed to keep is some furniture, clothes and the tools of his trade, sometimes including his vehicle.
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.
An experienced attorney will do everything possible to avoid filing for insolvency. In the majority of cases he will be able to negotiate with the creditors and reach an agreement on how the debt of the applicant will be paid. In some cases the attorney can even approach the court to order creditors to accept new payment schedules.
It is most certainly not always possible to foresee serious financial problems. It is possible, however, to take action the very moment that such problems become apparent. It is vital to face the problems and to immediately obtain legal help. Taking immediate action can often help prevent disastrous long term consequences.
One of the main reasons why it is so important to get a lawyer to handle a chapter 7 or 13 application is that the entire process can be extremely stressful. It will take at least three, but more likely six months to see a final result. The courts do not grant applications without exhausting evaluation of all the factors involved. The court needs to keep the rights of all parties in mind.
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.
Once a court agrees to consider an application in terms of Chapters 7 or 13, it will immediately appoint a trustee to oversee the process. The main priority of the trustee is to see to it that claimants receive what is due to them, or at least as large a percentage as possible. To this end he will sell the assets of the applicant at an open auction and liquidate all his investments and savings.
Many applicants are disillusioned when they find out that an insolvency order does not make their financial troubles disappear. This is simply not the case. Obligations such as back taxes, child support payments, secured loans and other debts cannot be set aside or cancelled by the court. All the applicant will be allowed to keep is some furniture, clothes and the tools of his trade, sometimes including his vehicle.
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.
An experienced attorney will do everything possible to avoid filing for insolvency. In the majority of cases he will be able to negotiate with the creditors and reach an agreement on how the debt of the applicant will be paid. In some cases the attorney can even approach the court to order creditors to accept new payment schedules.
It is most certainly not always possible to foresee serious financial problems. It is possible, however, to take action the very moment that such problems become apparent. It is vital to face the problems and to immediately obtain legal help. Taking immediate action can often help prevent disastrous long term consequences.
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