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.
Bankruptcy is not an easy route and anybody that thinks this is a good way to get rid of financial responsibilities is making a very big mistake. The process is humiliating and once an estate is liquidated the person involved is faced with years of financial difficulties. Bankruptcy should always be the very last resort. There are other ways in which to solve serious financial difficulties.
Once an application for bankruptcy is received and registered by a court things move very swiftly. In the case of businesses trade is halted without delay in in most cases employees are sent home without any prospect of retaining their jobs Individuals are placed under severe restrictions and the court immediately appoints a trustee with wide powers of attorney.
Once a trustee is appointed the defendant is required to provide full cooperation in all matters. In the case of businesses the trustee routinely closes the concern down, although there are cases where trade is continued. Every decision of the trustee is based upon the interests of the creditors. He may decide to sell the business or he may decide to simply get rid of the assets in order to raise cash.
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.
The person or business involved in the application must forfeit all their assets. This will be sold to satisfy the demands of the creditors. These days the courts apply a means test to decide whether the applicant is indeed unable to meet financial demands. In terms of this test the court may actually deny the application and order the applicant to negotiate with creditors and to meet all financial obligations.
Defendants are required to cooperate in many different ways and they are placed under very severe restrictions. They are not allowed to enter into any legal agreements and their financial situations will be scrutinized in detail. All documents required by the trustee must be furnished immediately and any failure to comply with these demands may lead to an arrest and even imprisonment.
Houston liquidators are used to deal with bankruptcy cases and while they try to be sympathetic towards applicants they have to keep the interests of the creditors foremost in their minds. Bankruptcy is not an easy way out of financial trouble. The process is stressful and the consequences will be felt for years to come.
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