Global economic uncertainty, fluctuating exchange rates and inflation are just some of the reasons why more and more people are struggling to balance their finances. Bad debt is escalating and thousands of people simply cannot pay their accounts any longer. Some even face losing everything that they have worked years to accumulate. As a last resort, individuals and businesses can obtain some relief by applying for bankruptcy in Chicago.
A chapter 7 or chapter 13 application for insolvency is not a straight forward affair. The court has to consider numerous issues. The applicant must explain why he became unable to honour his obligations. The finalization of applications can take up to six months and the applicant will have to cooperate fully or face charges. The best course of action is to appoint a lawyer to deal with the matter.
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.
Applicants are often shocked to learn that insolvency does not absolve them from all their obligations. Secured debts are not written off. Child support payments will continue to be due and all taxes will still have to be paid. In many cases the applicant ends up with nothing but some furniture, sometimes his car and the means to make a living.
Nobody should attempt an insolvency application before obtaining advice from an experienced and reputable attorney. The long term consequences of insolvency can be devastating. Once an order is granted by the court the applicant will find it very difficult to obtain finance for at least ten years. He may be forced to make drastic life style changes and these changes will also be applicable to his family.
Any reputable lawyer will first try every possible avenue before filing for insolvency. Many creditors are willing to accept lower payments over extended pay back periods because they will at least be paid. The lawyer can even approach the court to enforce such arrangements. He can also help his client to draw up a realistic budget that will enable him to retain at least some quality of life whilst paying his debts.
Far too many people end up in the insolvency court because they neglected to take action when they first realized that they are in trouble. It is imperative to get professional help immediately. In most cases a complete financial disaster can be averted but decisive action needs to be taken and the applicant will have to impose strict financial discipline.
A chapter 7 or chapter 13 application for insolvency is not a straight forward affair. The court has to consider numerous issues. The applicant must explain why he became unable to honour his obligations. The finalization of applications can take up to six months and the applicant will have to cooperate fully or face charges. The best course of action is to appoint a lawyer to deal with the matter.
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.
Applicants are often shocked to learn that insolvency does not absolve them from all their obligations. Secured debts are not written off. Child support payments will continue to be due and all taxes will still have to be paid. In many cases the applicant ends up with nothing but some furniture, sometimes his car and the means to make a living.
Nobody should attempt an insolvency application before obtaining advice from an experienced and reputable attorney. The long term consequences of insolvency can be devastating. Once an order is granted by the court the applicant will find it very difficult to obtain finance for at least ten years. He may be forced to make drastic life style changes and these changes will also be applicable to his family.
Any reputable lawyer will first try every possible avenue before filing for insolvency. Many creditors are willing to accept lower payments over extended pay back periods because they will at least be paid. The lawyer can even approach the court to enforce such arrangements. He can also help his client to draw up a realistic budget that will enable him to retain at least some quality of life whilst paying his debts.
Far too many people end up in the insolvency court because they neglected to take action when they first realized that they are in trouble. It is imperative to get professional help immediately. In most cases a complete financial disaster can be averted but decisive action needs to be taken and the applicant will have to impose strict financial discipline.
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