When the court or department of justice appoints a bankruptcy trustee Calgary residents should know that this individual will be tasked with overseeing the entire process. Trustees can also be appointed by creditors to advise the court accordingly on matters concerning bankruptcy. This individual looks at the merits of a case and makes recommendations on whether to accept or reject the application.
A person or company may declare bankruptcy for a number of reasons. For instance, the taxpayer may have unmanageable levels of debts. Homeowners can also use the process to stop foreclosure proceedings. Whatever the reason, this option gives debtors legal protection from debt collectors and creditors.
There are different types of bankruptcies that taxpayers in the U. S can use to get legal protection. The most common ones include chapters seven, eleven, twelve and thirteen. Since the requirements and applications of these legal options vary, it is the responsibility of the trustee to ensure that taxpayers qualify, and have met the minimum requirements for the different types of bankruptcies.
The main responsibility of this individual, in chapter 7 proceedings, is to liquidate the assets of the debtor. Trustees normally sell all non-exempt assets belonging to the person seeking bankruptcy. They also distribute the proceeds proportionately between all the creditors. Debtors should always have an attorney by their side during the process to ensure that exempt assets are not liquidated.
Reorganization of business debts is what is normally done under chapters 11 and 12. A firm files a petition in the appropriate court to get legal reprieve from creditors. During the proceedings, debtors have to come up with a plan to repay all debts using business income. Unfortunately, only profitable businesses can qualify for this option. Trustees are normally tasked with collecting monthly payments from debtors and forwarding them to creditors accordingly.
Chapter 13, or personal reorganization, is very popular with consumers. In such cases, trustees ensure that debtors have good jobs or reliable sources of income before the case can move to the next stage. When debtors come up with a repayment plan that suits them, these individuals arrange a meet between the two parties. During the meeting, creditors can put debtors on the spot to justify the reasons why the plan should be accepted.
In cases involving bankruptcies, trustees are the most important figures. They can be looked at as the court's hand, or the long arm of the law. They normally go through the financial statements of businesses as well as personal financial records to identify anomalies, inconsistencies or improprieties involving borrowing or disposal or property among other things. If there are anomalies of any kind, and the petitioner cannot make things clear, the individual may ask the court to throw out the case.
A bankruptcy trustee Calgary residents should know must be impartial. These professionals neither work for the creditors nor the debtor. Their job is to ensure that the rights of both the debtor and creditor are upheld. They are also tasked with ensuring that creditors get some or all of their funds back. Trustees are normally experts in the fields of finance, business, accounting or law among other related fields.
A person or company may declare bankruptcy for a number of reasons. For instance, the taxpayer may have unmanageable levels of debts. Homeowners can also use the process to stop foreclosure proceedings. Whatever the reason, this option gives debtors legal protection from debt collectors and creditors.
There are different types of bankruptcies that taxpayers in the U. S can use to get legal protection. The most common ones include chapters seven, eleven, twelve and thirteen. Since the requirements and applications of these legal options vary, it is the responsibility of the trustee to ensure that taxpayers qualify, and have met the minimum requirements for the different types of bankruptcies.
The main responsibility of this individual, in chapter 7 proceedings, is to liquidate the assets of the debtor. Trustees normally sell all non-exempt assets belonging to the person seeking bankruptcy. They also distribute the proceeds proportionately between all the creditors. Debtors should always have an attorney by their side during the process to ensure that exempt assets are not liquidated.
Reorganization of business debts is what is normally done under chapters 11 and 12. A firm files a petition in the appropriate court to get legal reprieve from creditors. During the proceedings, debtors have to come up with a plan to repay all debts using business income. Unfortunately, only profitable businesses can qualify for this option. Trustees are normally tasked with collecting monthly payments from debtors and forwarding them to creditors accordingly.
Chapter 13, or personal reorganization, is very popular with consumers. In such cases, trustees ensure that debtors have good jobs or reliable sources of income before the case can move to the next stage. When debtors come up with a repayment plan that suits them, these individuals arrange a meet between the two parties. During the meeting, creditors can put debtors on the spot to justify the reasons why the plan should be accepted.
In cases involving bankruptcies, trustees are the most important figures. They can be looked at as the court's hand, or the long arm of the law. They normally go through the financial statements of businesses as well as personal financial records to identify anomalies, inconsistencies or improprieties involving borrowing or disposal or property among other things. If there are anomalies of any kind, and the petitioner cannot make things clear, the individual may ask the court to throw out the case.
A bankruptcy trustee Calgary residents should know must be impartial. These professionals neither work for the creditors nor the debtor. Their job is to ensure that the rights of both the debtor and creditor are upheld. They are also tasked with ensuring that creditors get some or all of their funds back. Trustees are normally experts in the fields of finance, business, accounting or law among other related fields.
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