The inability to cope financially can be the single most stressful and debilitating experiences. In extreme cases, individuals and businesses may even be forced to apply for insolvency in accordance with Boston bankruptcy laws. This is a serious matter and may have far reaching effects that could ruin the prospects of individuals for many years.
It is not all that easy to apply for bankruptcy. In terms of Chapter Seven the applicant is required to provide detailed reasons for their applications. But once the court approves an application, matter proceeds very fast. In case of businesses, trading is halted immediately and the court appoints a trustee to oversee the process.
In the case of companies that apply for insolvency, the trustee is given very wide powers. The business may be closed and all the employees may be made redundant. In certain cases, it may be decided that the business should continue operations, but only if it is in favor of the individuals and businesses that are owed money.
Individuals too, may find themselves in a situation where they can no longer honor their financial obligations. In these cases it is possible to apply for a straight insolvency. This should not be done if there is any other solution to the problem, however. Obtaining insolvency is most certainly not a solution to long term debt problems for individuals.
Once an application is accepted by the courts, applicants lose all their assets. The trustee may decide how to dispose of these assets, but in most cases, it is sold on public auction and the moneys thus raised are distributed amongst the creditors. This does not mean that all financial obligations have disappeared, however. Outstanding fines, taxes and court ordered support still have to be paid.
Appointing the services of a Boston bankruptcy lawyer should only be done if there is no other solution. The long term effects of insolvency are horrendous and the law is ruthless. This route is certainly no easy way to avoid financial responsibilities and there can be no doubt at all that a person or business that have been declared to be insolvent will be hard pressed to recover. Boston Bankruptcy
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