what are the dangers and disadvantages of filing insolvency petition?? please answer iam in deep trouble
2007-01-29 04:18:32 · 6 answers · asked by Anonymous in Politics & Government ➔ Law Enforcement & Police
Insolvency is the legal way of saying that you don't have a penny to pay back. No dangers and this is the last resort. Do it.
2007-01-29 04:22:47 · answer #1 · answered by liketoaskq 5 · 0⤊ 0⤋
Insolvency Petition
2016-10-02 10:53:12 · answer #2 · answered by koltz 4 · 0⤊ 0⤋
First clear this misconception of dangers and disadvantages.
A person is said to be an insolvent when he is unable to pay his creditors even by selling all his assets, both moveable and immoveable properties.
If the creditors resort to recovery of all the moveables and immoveables of a person for satisfying their claims, then what danger and disadvantage will that person have. He will be left with nothing. He will virtually become a beggar with no home to live and no clothes to wear and nothing to eat.
At least if one applies to the Court for a declaration of insolvency then that person will be allowed to stay or live with the basic requirements. No doubt all his properties would be put to sale but the person won't be stripped of his basic necessities.
Therefore opting for a declaration of insolvency before a Court would be rather advantageous and beneficial in all respects. And you hardly have any other option.
2007-01-29 16:22:29 · answer #3 · answered by thiru 2 · 2⤊ 0⤋
Insolvency petition means you don't have anything left and so you are unale to return the money taken from people or pay the debts. This can be used as a final solution. The only disadvantage is that that after this no bank will take your gaurentee or will be ready to loan you money in the future. But, this is a very good solution in case if the people are doing dadagiri or abusing you for their money and you are in no situation to pay.
2007-02-06 01:15:52 · answer #4 · answered by Pirate of the Bassein Creek 4 · 1⤊ 0⤋
An insolvent person doesn't have money in cash & in bank to pay money to there lenders.If somebody file a case against you then your all money(whatever is left),the assets which you mortgage at the time of deed is all to be divided to your lenders in there proportion .But if you don't have anything to pay then nobody clamed you.Take some legal advice from a good lawyer if you are really in trouble .I hope i'll help you.Best of luck.
2007-01-29 04:52:57 · answer #5 · answered by i20sick 2 · 0⤊ 0⤋
U have t prove in court of law/disadvantages r too many,None pay any value to that individual,temporary,but will be taken seriously,once u repay the dues in due course
2007-02-05 05:12:57 · answer #6 · answered by snyl 2 · 0⤊ 0⤋