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 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.
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 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.
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.
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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.
