Throughout history global or even local financial difficulties have caused vulnerable businesses and individuals to become unable to honor their financial obligations. In many cases the only solution is to become insolvent. This is a serious business and should only be contemplated as a very last resort. If this seems to be the only solution however, it is vital to obtain the services of a bankruptcy attorney in Fairhope AL.
Insolvency is not an easy way out of trouble and many people have found this out to their own detriment. It is an embarrassing process that will put the applicant through the wringer. The entire process is designed to make sure that the applicant is not merely trying to avoid his financial responsibilities and the penalties of the process are high indeed, inevitably resulting in significant losses for the applicant.
As soon as an application is approved by the court, a trustee is appointed. This trustee is empowered to make decisions and to act in the interests of the creditors. In the case of individuals, all assets will most surely be confiscated immediately. The assets will be sold in order to raise funds to pay the creditors. Bank accounts will also be frozen and the funds will also be used to satisfy the demands of creditors.
When the applicant is a business the trustee may opt to close the business forthwith. Employees will then lose their jobs. He may also opt for keeping the doors open, but only if he deems this to be in the interests of the creditors. The business will then be sold as a going concern or the assets may be stripped and sold piecemeal at an auction.
Before an application can be approved the courts first apply a means test. This test has been devised because so many people and businesses used to abuse the system simply to avoid their financial responsibilities. The purpose of the test is to determine whether the applicant can pay his debts, even if it has to be done on reduced installments. In such cases the court will appoint an administrator that will make sure that the applicant keeps to the arrangement.
Applicants have to agree to very onerous and serious obligations. They have to produce all the records demanded by the trustee or administrator. Their affairs will be investigated thoroughly and if any dishonesty is suspected the applicant will face serious consequences. He may be criminally charged and even arrested. It is best for applicants to cooperate fully and willingly.
When in serious financial trouble it is very important to seek professional help immediately. A lawyer can help to deal with the stress of the situation by dealing with creditors and by negotiating on behalf of his client. In many cases a settlement can be reached without having to resort to the insolvency process. It is best to seek advice from a lawyer that specializes in this specific field.
An application for insolvency should always be the very last resort. It is a humiliating process and applicants will feel the consequences for many years. It is absolutely vital to obtain legal help before even thinking about approaching the courts.
If you ever have the need for a bankruptcy attorney in Fairhope AL best thing to do is visit the Web and enter the keywords in a search engine. Alternatively, you may go directly to this website at http://ift.tt/1vMMbSE.
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Why The Services Of A Bankruptcy Attorney In Fairhope AL Is Vital
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