Life has several paths that need to be traversed including academic, financial, medical, and psychological among many other spheres. In terms of finance, lots of people have huge debts which they must clear or risk their wages being garnished, property repossessed or other serious action. When in such situation, filing for bankruptcy is a thing that most people consider. When one needs to file chapter 11 Monterey offers the perfect location to visit.
Whereas filing for bankruptcy may save one from some of the harsh actions, it is important to have a good understanding of how the process works. One should know the circumstance under which filing for insolvency is allowed by the law and what follows after that. This article will present some important facts about this issue. Additionally, it will provide a comprehensive definition of what insolvency is.
Bankruptcy is simply the inability of companies or individuals to meet their financial obligations. This might happen because of various reasons including natural tragedies, divorce, poor investment decisions, and diseases among others. When such happens, the law can offer legal protection to bankrupt persons against their creditors. Most individuals in history have been using this method to protect repossession of their assets by creditors.
When individuals file for insolvency, they are protected permanently or temporarily by the law against all debts accumulated before the day the petition for insolvency was filed. Any proceedings and collection actions are normally suspended from that specific date. Alongside debt elimination, a plan is drawn for the debtor to repay what they owe. Plans for repayment are formulated while one is protected by bankruptcy law.
Filing for insolvency is not a very easy process like many people may think. To be granted the status of being bankrupt, one must provide proof to show that they are actually incapable of repaying debts. The proof is usually provided before a judge in a court of law. One may need a bankruptcy lawyer for legal representation during these proceedings.
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.
Creditors are allowed to dispute court orders concerning the insolvency status of an individual if they have a reason for the dispute. For example, in the case where an individual owns a house which was issued as collateral for loans, the creditor can dispute a court order and take the house in question as a repayment for loan. Certain payments or debts are also not capable of being discharged from insolvency claim. Such debts include child support, taxes, student loans, and alimony.
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.
Whereas filing for bankruptcy may save one from some of the harsh actions, it is important to have a good understanding of how the process works. One should know the circumstance under which filing for insolvency is allowed by the law and what follows after that. This article will present some important facts about this issue. Additionally, it will provide a comprehensive definition of what insolvency is.
Bankruptcy is simply the inability of companies or individuals to meet their financial obligations. This might happen because of various reasons including natural tragedies, divorce, poor investment decisions, and diseases among others. When such happens, the law can offer legal protection to bankrupt persons against their creditors. Most individuals in history have been using this method to protect repossession of their assets by creditors.
When individuals file for insolvency, they are protected permanently or temporarily by the law against all debts accumulated before the day the petition for insolvency was filed. Any proceedings and collection actions are normally suspended from that specific date. Alongside debt elimination, a plan is drawn for the debtor to repay what they owe. Plans for repayment are formulated while one is protected by bankruptcy law.
Filing for insolvency is not a very easy process like many people may think. To be granted the status of being bankrupt, one must provide proof to show that they are actually incapable of repaying debts. The proof is usually provided before a judge in a court of law. One may need a bankruptcy lawyer for legal representation during these proceedings.
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.
Creditors are allowed to dispute court orders concerning the insolvency status of an individual if they have a reason for the dispute. For example, in the case where an individual owns a house which was issued as collateral for loans, the creditor can dispute a court order and take the house in question as a repayment for loan. Certain payments or debts are also not capable of being discharged from insolvency claim. Such debts include child support, taxes, student loans, and alimony.
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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