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.
Far too many people think that insolvency is an easy and quick route out of financial obligations. This is most certainly not the case. The court will apply a means tests and if it is of the opinion that the applicant can pay the claimants, albeit at a reduced rate, it will refuse to grant the order. It is up to the applicant to convince the court that he cannot honour his obligations and that it is unlikelihood that his situation will improve.
As soon as a court agrees to consider an insolvency application it will appoint a trustee. The trustee has wide powers and will, in most cases, immediately liquidate the estate of the applicant in order to raise cash to pay the claimants. If the applicants a business, the trustee may sell the assets or decide to keep the company going until it can be sold as a going concern. Full cooperation is expected from the applicant.
Applicants often do not know that they will remain responsible for certain financial obligations. Debts that are secured must still be honoured. Child support payments must still be made and taxes, even back taxes, are still due. The trustee will leave the applicant with some furniture, clothes, tools and in some cases his vehicle. The rest will be forfeit.
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.
Financial experts advise that anyone who finds himself in financial difficulties act immediately. Far too many people ignore their problems and when they act, it is often too late to avoid a catastrophe. It is not a shame to admit to experiencing difficulties and it is certainly far better to obtain help at an early stage.
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.
Far too many people think that insolvency is an easy and quick route out of financial obligations. This is most certainly not the case. The court will apply a means tests and if it is of the opinion that the applicant can pay the claimants, albeit at a reduced rate, it will refuse to grant the order. It is up to the applicant to convince the court that he cannot honour his obligations and that it is unlikelihood that his situation will improve.
As soon as a court agrees to consider an insolvency application it will appoint a trustee. The trustee has wide powers and will, in most cases, immediately liquidate the estate of the applicant in order to raise cash to pay the claimants. If the applicants a business, the trustee may sell the assets or decide to keep the company going until it can be sold as a going concern. Full cooperation is expected from the applicant.
Applicants often do not know that they will remain responsible for certain financial obligations. Debts that are secured must still be honoured. Child support payments must still be made and taxes, even back taxes, are still due. The trustee will leave the applicant with some furniture, clothes, tools and in some cases his vehicle. The rest will be forfeit.
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.
Financial experts advise that anyone who finds himself in financial difficulties act immediately. Far too many people ignore their problems and when they act, it is often too late to avoid a catastrophe. It is not a shame to admit to experiencing difficulties and it is certainly far better to obtain help at an early stage.
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