If you own a business that is experiencing financial problems that have made it impossible for you to service your business debts, you can file for bankruptcy. A chapter 11 Oakland residents should know, is a type of bankruptcy that was designed specifically for businesses and legal entities that are unable to service their debts. You can file for bankruptcy under this provision to get rid of your business debt.
It is crucial you get legal assistance when filing for bankruptcy. This is because you will need to know all the pros and cons of filing for bankruptcy. A competent lawyer can help you out with the entire process, so be sure to take your time to compare all the bankruptcy lawyers in the city to identify the right one. Experience and reputation are the two key factors to consider when carrying out due diligence.
This bankruptcy chapter is meant for businesses only. It provides for reorganization or debt. Individual consumers cannot use this option, as they can only qualify for bankruptcy under chapters 7 and 13. Be sure to work with a reputable lawyer when seeking bankruptcy protections.
There are a number of disadvantages of filing for bankruptcy. The biggest one, however, is that your business will be blacklisted, so you will not be able to get commercial loans from mainstream lenders. Suppliers will also refuse to supply goods and services on credit due to your track record of refusing to pay. Be sure to keep this in mind when filing for bankruptcy.
Only businesses or legal entities with a regular income can qualify for this bankruptcy option. If your business is not able to generate any income, your only option would be to have its assets liquidated under chapter 7. However, if you have a reliable and significant income source, you might just be lucky enough to get the bankruptcy protections that come with this bankruptcy provision.
It is important to note that the bankruptcy will remain on the credit report of the business for several years. This means that the bankruptcy will taint the reputation of the business. However, this is the best way for the business to settle its debts without shutting its doors or losing any of its assets. Therefore, the owners of distressed businesses should consider this option.
Once a business has been declared bankrupt under this bankruptcy provision, the trustee will take over the day to day running of the business. This means that they have to sign off on important business decisions. Furthermore, additional credit cannot be procured and no core asset can be disposed of during the bankruptcy period.
Business owners are often required to draft a repayment plan for their business debt when filing for this bankruptcy option. The plan must take into consideration the average income of the business, and must span the entire bankruptcy period. By paying these installments without fail, business owners can be assured of getting debt forgiveness after the bankruptcy period.
It is crucial you get legal assistance when filing for bankruptcy. This is because you will need to know all the pros and cons of filing for bankruptcy. A competent lawyer can help you out with the entire process, so be sure to take your time to compare all the bankruptcy lawyers in the city to identify the right one. Experience and reputation are the two key factors to consider when carrying out due diligence.
This bankruptcy chapter is meant for businesses only. It provides for reorganization or debt. Individual consumers cannot use this option, as they can only qualify for bankruptcy under chapters 7 and 13. Be sure to work with a reputable lawyer when seeking bankruptcy protections.
There are a number of disadvantages of filing for bankruptcy. The biggest one, however, is that your business will be blacklisted, so you will not be able to get commercial loans from mainstream lenders. Suppliers will also refuse to supply goods and services on credit due to your track record of refusing to pay. Be sure to keep this in mind when filing for bankruptcy.
Only businesses or legal entities with a regular income can qualify for this bankruptcy option. If your business is not able to generate any income, your only option would be to have its assets liquidated under chapter 7. However, if you have a reliable and significant income source, you might just be lucky enough to get the bankruptcy protections that come with this bankruptcy provision.
It is important to note that the bankruptcy will remain on the credit report of the business for several years. This means that the bankruptcy will taint the reputation of the business. However, this is the best way for the business to settle its debts without shutting its doors or losing any of its assets. Therefore, the owners of distressed businesses should consider this option.
Once a business has been declared bankrupt under this bankruptcy provision, the trustee will take over the day to day running of the business. This means that they have to sign off on important business decisions. Furthermore, additional credit cannot be procured and no core asset can be disposed of during the bankruptcy period.
Business owners are often required to draft a repayment plan for their business debt when filing for this bankruptcy option. The plan must take into consideration the average income of the business, and must span the entire bankruptcy period. By paying these installments without fail, business owners can be assured of getting debt forgiveness after the bankruptcy period.
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