It is a sad but real fact that many businesses and individuals get to a point where they realize that they simply do not have the means to honor their commitments and that they have no choice other than to apply for bankruptcy. It is a brutal process that places the applicant under the scrutiny of the court and the officials that are appointed to investigate the finances of the person or business. Houston liquidators are used to dealing with distraught applicants.
Anybody that is of the opinion that bankruptcy is an easy way out of a financial mess is in for a very rude surprise. The process is brutal and the laws governing bankruptcy are extremely strict. The law simply does not allow an easy way out of financial difficulties. It is truly best to try and reach accommodations before resorting to such an extreme step.
When somebody applies for liquidation the court acts very quickly. In the United States chapter seven of the Bankruptcy Code is immediately invoked. A trustee is appointed by the court and the applicant is immediately placed under severe financial restrictions. If the applicant is a business, trading is halted immediately. In cases where the creditors of the person or business are the applicants, no further financial dealings are tolerated.
The trustee has the unfortunate task to investigate the financial position and dealings of the applicant or defendant. In some cases companies are allowed to continue trading, but only if this is deemed to be to the advantage of the creditors. In many cases businesses are sold as going concerns, but the trustee may decide to sell the assets at an auction in order to pay the creditors.
Individual people that hope to be released from all their financial commitments apply for bankruptcy in vain. They still have to honor their debts that are paid on the basis of a lien, they still have to pay child and spouse support and they never get released from their tax obligations. The trustee is made responsible for distributing the income of the defendant.
In modern times courts have done much to prevent abuse of the bankruptcy laws Applicants must now undergo a means test. This test aims to determine whether the applicant can somehow still honor all financial commitments, even if it means that certain arrangements must be made with the creditors. In some cases the court will order a payment schedule and deny the application.
Applicants simply have to understand that they will have to tolerate severe restrictions. They are not allowed to enter into any new financial agreements and they have to comply with any reasonable demands made by the trustee. They have to attend meetings and they have to provide detailed documentation as it is demanded. Failure to comply can have serious consequences and it is even possible to be arrested and jailed when lying to the trustee.
Bankruptcy is a very serious matter and it is truly best to first explore every possible alternative before going this route. Houston liquidators may show empathy but they have a job to do. The interests of the creditors are the most important issue and the applicant cannot expect any leniency.
Anybody that is of the opinion that bankruptcy is an easy way out of a financial mess is in for a very rude surprise. The process is brutal and the laws governing bankruptcy are extremely strict. The law simply does not allow an easy way out of financial difficulties. It is truly best to try and reach accommodations before resorting to such an extreme step.
When somebody applies for liquidation the court acts very quickly. In the United States chapter seven of the Bankruptcy Code is immediately invoked. A trustee is appointed by the court and the applicant is immediately placed under severe financial restrictions. If the applicant is a business, trading is halted immediately. In cases where the creditors of the person or business are the applicants, no further financial dealings are tolerated.
The trustee has the unfortunate task to investigate the financial position and dealings of the applicant or defendant. In some cases companies are allowed to continue trading, but only if this is deemed to be to the advantage of the creditors. In many cases businesses are sold as going concerns, but the trustee may decide to sell the assets at an auction in order to pay the creditors.
Individual people that hope to be released from all their financial commitments apply for bankruptcy in vain. They still have to honor their debts that are paid on the basis of a lien, they still have to pay child and spouse support and they never get released from their tax obligations. The trustee is made responsible for distributing the income of the defendant.
In modern times courts have done much to prevent abuse of the bankruptcy laws Applicants must now undergo a means test. This test aims to determine whether the applicant can somehow still honor all financial commitments, even if it means that certain arrangements must be made with the creditors. In some cases the court will order a payment schedule and deny the application.
Applicants simply have to understand that they will have to tolerate severe restrictions. They are not allowed to enter into any new financial agreements and they have to comply with any reasonable demands made by the trustee. They have to attend meetings and they have to provide detailed documentation as it is demanded. Failure to comply can have serious consequences and it is even possible to be arrested and jailed when lying to the trustee.
Bankruptcy is a very serious matter and it is truly best to first explore every possible alternative before going this route. Houston liquidators may show empathy but they have a job to do. The interests of the creditors are the most important issue and the applicant cannot expect any leniency.
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