djamal-soft
الثلاثاء، 13 نوفمبر 2018
When a business or individual consumer accumulates a lot of bad debt, the only option they may have for getting rid of the debt may be to file for bankruptcy. This is a legal option with serious consequences, so debtors should only use it as an option of last resort. Debt refinancing and consolidation should be considered before bankruptcy CA can be considered.
Corporate entities and businesses can become bankrupt under either chapter 11 or chapter 7. While the latter provides for liquidation of assets, the former is debt reorganization or restructuring. Both options have pros and cons that you should be aware of before you can make any decision. With a chapter 11, the debtor has to make regular monthly payments for a few years to get debt forgiveness.
Individual debts can seek to become bankrupt under chapters 7 and 13. Chapter 7 is basically liquidation of personal assets to offset the outstanding debt while chapter 13 provides for personal debt reorganization. In a chapter 13, the debtor only needs to create a plan to conveniently pay their debts over a period of several years. After that, all unpaid debts will be written off.
There are several negative effects of becoming bankrupt. For one, your credit report will show that you are bankrupt, so nobody will be willing to lend you money. Secondly, the reputation of your business will be adversely affected, and this may force you to close shop. In case of personal bankruptcy, your friends, colleagues, neighbors and relatives will start looking at you differently.
There are certain jobs that require the holder of office not be bankrupt. This means that you cannot get any of these jobs once you have been declared bankrupt. In fact, if you are currently the holder of an office that requires you not be bankrupt, you may lose the job once you file for bankruptcy. Be sure to keep this in mind when looking for debt resolution.
Consulting a competent lawyer is always recommended when you want to become bankrupt. This is crucial because you want to make a well-informed decision. When looking for a suitable lawyer, be sure to compare the years of experience and number of similar cases they have handled in the recent years before making a decision. The most experienced legal services providers usually offer the best counsel.
Student loans, alimony and child support debts cannot be written off through bankruptcy. They have to be settled to the last penny even if you are bankrupt. Therefore, you need to know the types of debts that will be forgiven through this option before you can make a decision. Your lawyer will explain the contents of the Federal Bankruptcy Act to ensure you can make a well-informed decision.
Once you have submitted your petition in court, a trustee will be selected by the court to oversee the process. This is an independent financial and legal expert with in-depth knowledge of the entire process. The trustee is the one who will make arrangements for the auction in case of a chapter 7. They will also arrange a meeting of creditors in case of a chapter 11 or 13.
Corporate entities and businesses can become bankrupt under either chapter 11 or chapter 7. While the latter provides for liquidation of assets, the former is debt reorganization or restructuring. Both options have pros and cons that you should be aware of before you can make any decision. With a chapter 11, the debtor has to make regular monthly payments for a few years to get debt forgiveness.
Individual debts can seek to become bankrupt under chapters 7 and 13. Chapter 7 is basically liquidation of personal assets to offset the outstanding debt while chapter 13 provides for personal debt reorganization. In a chapter 13, the debtor only needs to create a plan to conveniently pay their debts over a period of several years. After that, all unpaid debts will be written off.
There are several negative effects of becoming bankrupt. For one, your credit report will show that you are bankrupt, so nobody will be willing to lend you money. Secondly, the reputation of your business will be adversely affected, and this may force you to close shop. In case of personal bankruptcy, your friends, colleagues, neighbors and relatives will start looking at you differently.
There are certain jobs that require the holder of office not be bankrupt. This means that you cannot get any of these jobs once you have been declared bankrupt. In fact, if you are currently the holder of an office that requires you not be bankrupt, you may lose the job once you file for bankruptcy. Be sure to keep this in mind when looking for debt resolution.
Consulting a competent lawyer is always recommended when you want to become bankrupt. This is crucial because you want to make a well-informed decision. When looking for a suitable lawyer, be sure to compare the years of experience and number of similar cases they have handled in the recent years before making a decision. The most experienced legal services providers usually offer the best counsel.
Student loans, alimony and child support debts cannot be written off through bankruptcy. They have to be settled to the last penny even if you are bankrupt. Therefore, you need to know the types of debts that will be forgiven through this option before you can make a decision. Your lawyer will explain the contents of the Federal Bankruptcy Act to ensure you can make a well-informed decision.
Once you have submitted your petition in court, a trustee will be selected by the court to oversee the process. This is an independent financial and legal expert with in-depth knowledge of the entire process. The trustee is the one who will make arrangements for the auction in case of a chapter 7. They will also arrange a meeting of creditors in case of a chapter 11 or 13.
About the Author:
Get details about the things to consider when choosing a bankruptcy CA attorney and more information about a knowledgeable lawyer at http://www.centralcoastbankruptcy.com now.
Category ›
ليست هناك تعليقات:
إرسال تعليق