It’d be great if every business operating today became successful and lasted for years and years. However, it’s not uncommon for businesses to suffer severe financial setbacks. When this happens, a business may need to file for bankruptcy. Sometimes choosing bankruptcy is the only way to keep a business alive. Get Help with Bankruptcy in order to save your business.
Most small business owners will need to choose Chapter 7 bankruptcy. Chapter 7 bankruptcy is generally for those businesses and individuals who have acquired a generous amount of debt. This bankruptcy option will require a business to liquidate some of their assets in order to cover as much of their debt as they can. A judge will require that only eligible property be sold.
Unfortunately, some businesses have simply acquired too much debt to file for Chapter 7 bankruptcy. If a person has too much debt and makes too much money, they’ll need to file for Chapter 13 bankruptcy. Chapter 13 bankruptcy will give a business access to a special repayment plan. Creditors will work closely with a business in order to determine how much money can be paid each month. Once a payment plan has been set up, a business owner cannot deviate away from the agreement.
A business should Get Help with Bankruptcy only if they absolutely need to. Filing for bankruptcy can damage a person’s credit score, and this is something that’ll stay on your record for several years. Owners should also be prepared to share personal information about their finances. Both judges and creditors will want to know the total amount of debt that a business owner owes. It’s important that all of the information that’s provided is accurate and complete.
Business owners and individuals will have options when faced with financial difficulties. Again, Chapter 7 bankruptcy will require a business to liquidate some of their assets to pay off their creditors. Chapter 13 bankruptcy is for those looking to restructure their debt and agree to a repayment plan. Filing for bankruptcy will leave a lasting impression on a person’s credit score. Don’t file for bankruptcy unless you absolutely have to. Work with an attorney to learn about the other options available.
