Many types of Springfield bankruptcy are filed by individual and business entities; often the individual filing for bankruptcy seek to get rid of debt and get a new start financially; with the aid of a bankruptcy attorney, they can get the courts to appoint a trustee to sell your non-exempt personal assets to pay all of your creditors. There are other ways to file a Springfield bankruptcy. The key thing is to find the correct type of filing for your situation and that means that you must understand what types of assets you own and if you have any unsecured debts that need to be liquidated.
A person or business may have many types of assets that do not involve property such as cash, stocks, bonds, mutual funds, vehicles and more. They may also have tax liens, bank accounts and bank loans, but the majority of the assets that the individual or business has will be exempt from liquidation. Most of the time these types of assets are not listed as “exempt.” A person or business who owns and manages a lot of these types of assets may be able to liquidate those assets through a bankruptcy, even though it will not be listed under that category.
Liquidation is used when someone wants to liquidate their assets but does not want to deal with having to declare bankruptcy. The process of liquidation will help the person or business, get rid of the assets they no longer use and then sell them to pay off the debts. Once the debts are paid, then the remaining balance of the debts are written off. The court will appoint a trustee to sell the asset in question on behalf of the individual or business and then the trustee sells it for the amount owed and that amount is then distributed between the remaining debts and creditors. The assets may also be sold for an amount that is less than what was owed, in order to avoid bankruptcy.
If a company is sued for debt, a court order will be filed stating what assets will be sold and the amount that will be deducted from the assets that will be sold to pay off the debt. This will determine who will liquidate their assets.
One of the biggest reasons that a person or business goes bankrupt is because they are dealing with financial problems and are not sure how they are going to get out of it. If they have a lot of assets and not many debts, then bankruptcy may not be needed. There are many people that have made it through bankruptcy without declaring it and getting a lot of assets.
If you are thinking about filing for a Springfield bankruptcy, it is important that you understand the requirements of your particular situation and that you check into the laws in your area and also know about any rules and regulations that are applicable. You may want to take some courses to learn about bankruptcy and find the right type of filing that is right for your particular situation.