Global financial instability, currency fluctuations, job losses and many other factors have cause numerous people and businesses to experience serious financial problems. Of course there are those that are also in trouble because of irresponsible financial dealings. Those in trouble try to remedy the situation by cutting expenses but in many cases the situation is so bad that there does not seem to be a solution. However, by filing for Ch 11 bankruptcy TN residents need to know that this is a serious matter.
Having oneself or a business declared bankrupt is a very serious matter. It is not an easy way out of debt and other financial obligations. Courts are reluctant to grant such an order and they will first make absolutely sure that the applicant is truly unable to meet his commitments. A means test is applied and the financial dealings of the applicant will be examined.
Bankruptcies are not the only solution to financial problems. It is almost always possible to negotiate with creditors in order to extend payment periods and to lessen the monthly installments. It is even possible to approach the court to order creditors to do so. Specially trained debt counselors can help those in trouble to explore all their options and to consolidate their debt. It is definitely worth the effort.
If a decision is made to proceed with an application, the applicant should understand that it is a very long process that is almost guaranteed to be extremely stressful and often even humiliating. The applicant will have to make all his records and documents available for scrutiny. He will have to explain his life style and he will have to provide a detailed inventory of all his assets.
When the court agrees to hear an application, it will immediately appoint a trustee to oversee the process. The role of the trustee is primarily to protect the interests of the creditors, not the interests of the applicant. He will therefore seize all the assets of the applicant, leaving only those items deemed crucial for continued survival. The assets will be sold on open auction and the proceeds will be distributed among the creditors.
Only when the appointed trustee has done everything within his power to satisfy the creditors of the applicant will he notify the court of that fact. The court will then proceed and issue a discharge. Once this is done, the creditors of the applicant are prohibited from any further threats or legal actions against him. The applicant nevertheless remains responsible for paying back secured loans, child support payments and outstanding taxes.
Financial experts agree that the majority of applicants waited too long to address their financial problems. If they acted as soon as the trouble started, drastic measures such as bankruptcies can often be avoided. It is only human to ignore problems and hope they will go away. They will not and the only sensible thing to do is to seek professional help as soon as possible.
The bankruptcy laws are not designed to protect those that find themselves in serious financial trouble. It is there to protect the interests of the creditors. Being bankrupt has serious consequences and it is important to make absolutely sure there is no alternative.
Having oneself or a business declared bankrupt is a very serious matter. It is not an easy way out of debt and other financial obligations. Courts are reluctant to grant such an order and they will first make absolutely sure that the applicant is truly unable to meet his commitments. A means test is applied and the financial dealings of the applicant will be examined.
Bankruptcies are not the only solution to financial problems. It is almost always possible to negotiate with creditors in order to extend payment periods and to lessen the monthly installments. It is even possible to approach the court to order creditors to do so. Specially trained debt counselors can help those in trouble to explore all their options and to consolidate their debt. It is definitely worth the effort.
If a decision is made to proceed with an application, the applicant should understand that it is a very long process that is almost guaranteed to be extremely stressful and often even humiliating. The applicant will have to make all his records and documents available for scrutiny. He will have to explain his life style and he will have to provide a detailed inventory of all his assets.
When the court agrees to hear an application, it will immediately appoint a trustee to oversee the process. The role of the trustee is primarily to protect the interests of the creditors, not the interests of the applicant. He will therefore seize all the assets of the applicant, leaving only those items deemed crucial for continued survival. The assets will be sold on open auction and the proceeds will be distributed among the creditors.
Only when the appointed trustee has done everything within his power to satisfy the creditors of the applicant will he notify the court of that fact. The court will then proceed and issue a discharge. Once this is done, the creditors of the applicant are prohibited from any further threats or legal actions against him. The applicant nevertheless remains responsible for paying back secured loans, child support payments and outstanding taxes.
Financial experts agree that the majority of applicants waited too long to address their financial problems. If they acted as soon as the trouble started, drastic measures such as bankruptcies can often be avoided. It is only human to ignore problems and hope they will go away. They will not and the only sensible thing to do is to seek professional help as soon as possible.
The bankruptcy laws are not designed to protect those that find themselves in serious financial trouble. It is there to protect the interests of the creditors. Being bankrupt has serious consequences and it is important to make absolutely sure there is no alternative.
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