Why it is important to know what the purposes of bankruptcy and probate are? When you are into business or possesses assets, leaving these behind without any written will might cause chaos not just to your family but to the business as well.
Let’s begin with the declaration of bankruptcy. When you have business, the Assets are your way to success when you are into business. The more assets you have, the more you are able to roll the business and grow. But there are really instances in your life that you experience the worst and to a businessman, bankruptcy is one of the worst. The term bankruptcy is supported by law. This is not just about you closing down your business. When you declare bankruptcy under the rule of court, this will be your only way to pay your debts in the most convenient way possible. As long as you declare bankruptcy, you will be able to liquidate the existing assets you have and under the law, you will be able to pay your debts to your creditors in an orderly manner. The reason why you need to declare bankruptcy is to ensure that all debts are paid with the right amount at a given period of time. At the same time, whatever remaining amount after selling your assets, it will be given back to you. This way, you won’t be stressed much on your debts and there will be no more death threats from your creditors.
Probate on the other hand is still about your assets. The difference is that, this time, you died without being able to write your last will or liquidate your assets. This is what you call the person’s estate. Regardless of the value, your estate should be distributed to the rightful heirs. But if you didn’t leave a will and testament as to who will own which, the family of the bereaved will have to go through the probate in court. This means that everything is in accordance with the rule of court. This will take time but the thing about this is that the estate is given to the rightful owners.
The thing about both probate and bankruptcy is they are difficult to handle. Thus, you need the expertise of lawyers who have been handling similar cases for the past years. Why do you need to have an experienced lawyer? This is because you need to ensure that everything is smooth and fast. These cases under the rule of law are expensive. The longer it takes to solve it, the more you spend for it. If you are into probate, this will mean you need to pay even if you might not be able to get a portion of the deceased’s assets.
Therefore, if you want to win and make things fast and simple without actually worrying much because you know that you have the higher chance to win. Make sure you look for an experienced law firm to guarantee success no matter how much pay for the legal fees.