Consumers and businesses usually accumulate a lot of debt over time. Most borrowers can manage the debt they accumulate while others usually have problems servicing their debts. Those who have a lot of bad debt can get rid of their debt problem by filing for bankruptcy CA. After becoming bankrupt, the vast majority of their bad debts will be forgiven. This will leave them debt free.
There are two chapters under which business or corporate debtors can seek to become bankrupt. They are; chapter 7 and chapter 11. In case you decide to use chapter 7, you will have to close shop as everything in your business will be sold to pay part of your debt. If you choose a chapter 11, you will have a chance to continue running your business profitably and service your debts under improved terms and conditions.
Individual debtors can use either the chapter 7 or chapter 13 to become bankrupt. During chapter 7 proceedings, the assets of the debtor are usually sold to recover money to settle their debts. In a chapter 13, the debtor retains all their assets, but has to make regular monthly payments for several years. The payments are usually convenient and affordable to the debtor.
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.
There are two chapters under which business or corporate debtors can seek to become bankrupt. They are; chapter 7 and chapter 11. In case you decide to use chapter 7, you will have to close shop as everything in your business will be sold to pay part of your debt. If you choose a chapter 11, you will have a chance to continue running your business profitably and service your debts under improved terms and conditions.
Individual debtors can use either the chapter 7 or chapter 13 to become bankrupt. During chapter 7 proceedings, the assets of the debtor are usually sold to recover money to settle their debts. In a chapter 13, the debtor retains all their assets, but has to make regular monthly payments for several years. The payments are usually convenient and affordable to the debtor.
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.
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