Monday, July 24, 2017

When Facing Bankruptcy In Chicago Get A Lawyer Immediately

September 14, 2016 by  
Filed under Business

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.

It is very important to understand that insolvency is not an easy route out of financial trouble. Firstly, the applicant will have to convincingly prove that he is utterly unable to honour his obligations. The court does nor focus on the hardship of the applicant, but rather on the rights of the creditors that are owed money by the applicant. Their rights are therefore the main priority.

The first step taken by the court will be to appoint a trustee. Trustees has broad powers and their main task is to ensure that the creditors are paid. To this end they normally liquidate the assets of the applicant by selling them on open auction. If the applicant is a business, he may decide to sell the business as a going concern or he may simply strip the business of its assets and close the concern down.

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.

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.

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.

It is most certainly not always possible to foresee serious financial problems. It is possible, however, to take action the very moment that such problems become apparent. It is vital to face the problems and to immediately obtain legal help. Taking immediate action can often help prevent disastrous long term consequences.

Get a list of important things to consider before selecting a lawyer and more information about an experienced attorney who specializes in bankruptcy in Chicago at now.

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