A bankrupt business is usually an undesirable situation for all affected parties. Suppliers and service providers are not paid and workers have to seek alternative employment. Yet there are cases where the struggling business is genuinely not in a position to pay what it owes, and it may therefore use bankruptcy attorneys in Los Angeles County to obtain a discharge of debt through the legal system.
A discharge order is officially issued by the court and it effectively removes some or all of the bankrupt party's financial liabilities (it only pertains to those debts which existed at the time that the court procedure was instituted). Once issued, it is unassailable by those to whom the debts were owed. The debts are then officially of no effect and cannot be recovered.
Not all debts can be legally discharged. Where the Receiver is owed money, the debtor does not always have this option. Also, family debts such child support and alimony are sacrosanct, as are criminal penalties or personal liability arising from drink driving (or driving under the influence of drugs).
In such proceedings, the judge requires consistent good faith on the part of the bankrupt party. No debt must be excluded from the proceedings, as it may then be omitted from the final order. Fabricated statements or the destruction of evidence, such as company documents, may make the order impossible to grant.
If a debt pertains to criminal activity or fraud, the judge will not discharge it. Income or assets derived from that kind of activity prevent the granting of the order. The legal tenet at play here is that restitution in criminal cases cannot be alleviated through filing for bankruptcy.
The elimination of a secured debt does not always imply that the debtor keeps the asset. Even if the debt is discharged, the creditor may still repossess the financed item or property. If the debtor desires to retain it, they should make a repayment arrangement to that effect.
Bankruptcy is a problematic occurrence. But for some people, repayment is impossible. By following a formal legal process, assisted by experienced practitioners, bankrupt entities may elicit a more understanding response from their creditors.
A discharge order is officially issued by the court and it effectively removes some or all of the bankrupt party's financial liabilities (it only pertains to those debts which existed at the time that the court procedure was instituted). Once issued, it is unassailable by those to whom the debts were owed. The debts are then officially of no effect and cannot be recovered.
Not all debts can be legally discharged. Where the Receiver is owed money, the debtor does not always have this option. Also, family debts such child support and alimony are sacrosanct, as are criminal penalties or personal liability arising from drink driving (or driving under the influence of drugs).
In such proceedings, the judge requires consistent good faith on the part of the bankrupt party. No debt must be excluded from the proceedings, as it may then be omitted from the final order. Fabricated statements or the destruction of evidence, such as company documents, may make the order impossible to grant.
If a debt pertains to criminal activity or fraud, the judge will not discharge it. Income or assets derived from that kind of activity prevent the granting of the order. The legal tenet at play here is that restitution in criminal cases cannot be alleviated through filing for bankruptcy.
The elimination of a secured debt does not always imply that the debtor keeps the asset. Even if the debt is discharged, the creditor may still repossess the financed item or property. If the debtor desires to retain it, they should make a repayment arrangement to that effect.
Bankruptcy is a problematic occurrence. But for some people, repayment is impossible. By following a formal legal process, assisted by experienced practitioners, bankrupt entities may elicit a more understanding response from their creditors.
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Find an overview of the benefits you get when you work with bankruptcy attorneys in Los Angeles County and more information about a well-respected lawyer at http://www.goldbachlaw.com/ now.
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