When you first started your company, you may never have envisioned it failing at some point. Instead, you probably had high hopes for it to do well and make a lot of money. However, given the recent economic downturn, you might not have been able to protect your company from the pitfalls of the recession. You may have lost more money than you could have afforded. You also may have creditors knocking at your door and calling you at all hours for their payments. By filing for business bankruptcy TN entrepreneurs may safeguard your own personal assets and be able to rebuild your company in the near future.
Taking this legal step to protect your assets may be necessary sooner rather than later. Depending on your financial situation, you may be told that creditors like banks and equipment loan holders can seize your assets and sell them off to settle your debts. This action could mean losing your company's car, liquid assets like cash and accounts receivable, and perhaps even personal possessions like your home.
Once the case is filed, your assets will be protected by the court and the court trustee appointed to your case. Nothing may be sold, transferred, or leased without the permission of the court and the trustee. This step means that creditors have no legal right to lay claim to anything you or your company owns.
In some instances, the trustee can decide to liquidate assets after the case is decided, however. For instance, if you have more than one vehicle, the secondary one may be sold to settle some accounts as long as it does not have a lien on it. The money will be used to close out accounts with creditors. You will have no legal say in this action if you are filing for a total liquidation of your debt.
Even so, your primary home as well as at least one vehicle and your income will be safe from seizure and levies. The court must allow you access to these belongings so you can continue to work, earn an income, and care for your family. With that, some of your debts might be written off by the creditors because of the action taken by the court to protect these possessions.
When you plan to file this action quickly, it can be important for you to hire an attorney who specializes in this area of law. Your attorney will know what documents to file with the judge. Without certain documents, your case cannot move forward as quickly as you would like.
The attorney likewise will make sure creditors leave you alone and no longer contact you either by writing or phone call. They cannot show up to your company's location and demand payment. If they make this mistake, they could be prosecuted and be forced to pay your court costs.
Filing for bankruptcy might be the only way you have to protect important assets in your possession. Without this legal protection, creditors can lay claim to them. They also could seize your bank account and home. An attorney can help you file for this protective legal action right away.
Taking this legal step to protect your assets may be necessary sooner rather than later. Depending on your financial situation, you may be told that creditors like banks and equipment loan holders can seize your assets and sell them off to settle your debts. This action could mean losing your company's car, liquid assets like cash and accounts receivable, and perhaps even personal possessions like your home.
Once the case is filed, your assets will be protected by the court and the court trustee appointed to your case. Nothing may be sold, transferred, or leased without the permission of the court and the trustee. This step means that creditors have no legal right to lay claim to anything you or your company owns.
In some instances, the trustee can decide to liquidate assets after the case is decided, however. For instance, if you have more than one vehicle, the secondary one may be sold to settle some accounts as long as it does not have a lien on it. The money will be used to close out accounts with creditors. You will have no legal say in this action if you are filing for a total liquidation of your debt.
Even so, your primary home as well as at least one vehicle and your income will be safe from seizure and levies. The court must allow you access to these belongings so you can continue to work, earn an income, and care for your family. With that, some of your debts might be written off by the creditors because of the action taken by the court to protect these possessions.
When you plan to file this action quickly, it can be important for you to hire an attorney who specializes in this area of law. Your attorney will know what documents to file with the judge. Without certain documents, your case cannot move forward as quickly as you would like.
The attorney likewise will make sure creditors leave you alone and no longer contact you either by writing or phone call. They cannot show up to your company's location and demand payment. If they make this mistake, they could be prosecuted and be forced to pay your court costs.
Filing for bankruptcy might be the only way you have to protect important assets in your possession. Without this legal protection, creditors can lay claim to them. They also could seize your bank account and home. An attorney can help you file for this protective legal action right away.
About the Author:
Get a summary of the factors to consider when picking a business bankruptcy TN attorney and more information about an experienced lawyer at http://www.chattanoogach11.com now.
0 komentar:
Posting Komentar