When you incur so many losses in your business that you cannot pay your taxes, suppliers, and employees, the best option is filing for bankruptcy to clear your name. Nonetheless, do not take it as a simple process. It could cost you substantial amounts of time to complete. Fortunately, some professionals understand the process well and are better positioned to help you through it. Bankruptcy lawyers have adequate experience, knowledge, and skills to handle all types of bankruptcies. Those are the people you should consider working with to ensure your filing process is as successful as possible. Such legal experts are also equipped with the knowledge to answer all your questions.
Are business bankruptcies on public record? Your attorney will answer such a question and help you understand more about bankruptcy filing. They will also expound further on more matters, including explaining the advantages and disadvantages of filing bankruptcy. These lawyers have been in the legal industry for quite a while. Therefore, they have records of all the jobs they have done. In such a case, you can even get access to a file that contains active bankruptcies. Some of the listed businesses may be your competitors, which gives you some comfort that you can also get back on your feet in the corporate world.
Whether it is a family member or friend, you know someone who has been affected by bankruptcy. Did you know that even the uber-rich real estate mogul Donald Trump has filed for bankruptcy — not just once but four times? If you have chapter 13 bankruptcy questions, contact a bankruptcy lawyer who can help you put your life back together, or start be more financially responsible.
There are two types of personal bankruptcy: Chapter 13 and Chapter 7. As much as 65% of all US consumer bankruptcy filings are Chapter 7 cases. Chapter 7 is a form of personal bankruptcy that is also known as liquidation. In this case, some of the debtor’s assets are turned over to a court-appointed trustee and are liquidated to pay on the outstanding debt. Chapter 13 is a rehabilitation with a payment plan for individuals with a regular source of income, enabling individuals with regular income to develop a plan to repay all or part of their debts.
Bankruptcy is often viewed as a “fresh start,” but it will not wipe out all of your debts. In Chapter 7, a debtor surrenders his or her non-exempt property to a bankruptcy trustee who then liquidates the property and distributes the proceeds to the debtor’s unsecured creditors. In Chapter 13, the debtor retains ownership and possession of all of his or her assets, but must devote some portion of his or her future income to repaying creditors, generally over a period of three to five years. Relief under Chapter 13 is available only to individuals with regular income whose debts do not exceed prescribed limits. A Bankruptcy Exemption defines the property a debtor may retain and preserve through bankruptcy.
With careful planning and financial management, it is possible to rebuild your credit after bankruptcy. If you are working, make sure to put a little bit of your paycheck over time. If you have money saved, it will be easier should you lose your job or have a medical expense. Filing for bankruptcy is inevitable for many people, but that does not have to be you. Save a little now so you will not pay later.
If you have chapter 13 bankruptcy questions, make sure to talk with a bankruptcy attorney. You do not have to file for bankruptcy if you are financially responsible. Do the little things right and you will be financially sound for several years. Read this for more.