Points to Note Concerning Bankruptcy Ephrata, PA
The terms ‘bankruptcy’ and ‘insolvency’ are always used interchangeably. But truth be told, they carry different meaning. While the former refers to a state where an individual person has been adjudged by a court of law to be unable to discharge his financial obligations, insolvency relates to a company or legal entity which is incapable of paying its debts. So the test lies in the subject: bankruptcy usually deals with individual persons while insolvency deals with legal persons. But make no mistake, the effect is the same. In both instances, the party is held, through a legal process, to be unable to discharge debts owed as and when they fall due.
So the first thing anyone should note about bankruptcy Ephrata PA is that it is a legal state. A person can only be adjudged bankrupt if a court of law declares him or her to be so and likewise for the declaration of insolvency. So the reference to “bankruptcy” when a person is simply broke is terribly misplaced – unless of course it’s meant to elicit laughter and amusement.
Secondly, it is important to note that there are two types of insolvency cases: voluntary and involuntary. They both relate to the form in which the insolvency petition Ephrata PA was instigated. For voluntary cases, it is the debtors who petition for the order. Now, “why on earth would someone do that?” Well, that is certainly a topic for another day. But just to touch on that a bit, a state of insolvency is advantageous in certain situations. An involuntary petition for insolvency is made by creditors who are seeking payment of the debts owed to them by the debtor.
The third thing to bear in mind about bankruptcy Ephrata, PA is that it places certain limitations on the subject. As such it should never be treated casually. Upon being declared bankrupt, there are many things that you cannot do – at least in the eyes of the law. Now, there is a very long list in this regard. But just to give a foretaste of the limitations: you are barred from seeking public office, receiving loans from banks or individual persons, engaging in certain business transactions, entering into certain contracts – and the list goes on and on. So what if a bankrupt contravenes any of the conditions placed on him or her? That ushers us to our next point.
Breach of the conditions imposed on a person adjudged bankrupt amounts to a bankruptcy offense. And the penalty could range from fines to imprisonment – depending on the circumstances of the case.
From the foregoing, bankruptcy Ephrata, PA should never be taken lightly. Legal advice should always be sought from a qualified Attorney before any action is taken in this regard.
Bankruptcy in Ephrata PA – is no simple matter. It ought to be treated with all the seriousness it deserves. For professional legal advice concerning this issue, visit our website.