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.
Bankruptcy can be defined simply as the inability of an individual or a company to meet its financial obligations. This may happen due to several different reasons, which include poor investment decisions, natural tragedies, diseases, and divorce among others. When this happens, the law can provide legal protection to the bankrupt individual against creditors. Many people in history have used this strategy to protect their assets from being repossessed by creditors.
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.
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 thorough investigation, the court determines whether the concerned person does or does not qualify to be listed as bankrupt. In the event that it goes through, then the court orders that all debts listed in the application to be discharged. The moment the court issues its order, all creditors are required to desist from making any claims or collections on future earnings of the involved person.
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.
Bankruptcy can be defined simply as the inability of an individual or a company to meet its financial obligations. This may happen due to several different reasons, which include poor investment decisions, natural tragedies, diseases, and divorce among others. When this happens, the law can provide legal protection to the bankrupt individual against creditors. Many people in history have used this strategy to protect their assets from being repossessed by creditors.
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.
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 thorough investigation, the court determines whether the concerned person does or does not qualify to be listed as bankrupt. In the event that it goes through, then the court orders that all debts listed in the application to be discharged. The moment the court issues its order, all creditors are required to desist from making any claims or collections on future earnings of the involved person.
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.
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