Bankruptcy is a legal option for debtors to settle their debts without paying the outstanding balance of their debts. Both businesses and individual debtors can file for bankruptcy to get debt forgiveness. Whatever the case, it is crucial you look for a competent lawyer to advise and guide you through the process. After all, legal counsel is absolutely necessary when filing for chapter 11 Monterey.
Since there are many lawyers in the industry, there is need to do a comparison to identify the best lawyer for your needs. Ideally, you should make a shortlist of the most experienced bankruptcy lawyers in the city. After that, you should search for reviews and testimonials. After reading them, you should be able to identify the most suitable lawyer. A comparison of legal fees should also be done before a decision can be made.
There are many types of bankruptcies in existence. The most common, however, are; chapters 11, 13 and 7. Chapter 11 is basically business bankruptcy. It provides for debt restructuring. When a business has accumulated too much bad debt, the management can use this option to have their debts restructured and eventually forgiven.
When you need bankruptcy protections, you will be required to explain to your creditors as well as the court how you intend to service your debts. Obviously, your business must have a stable income and too much bad debt. The income must be enough to cover your overheads and payroll as well as leave something to go to your creditors. After making payments for several years, the firm will be forgiven of all its debts.
It is important to note that under this option, the trustee will not liquidate the assets of the debtor. Instead, regular monthly installments are made by the debtor to offset the outstanding balance. After a few years, all unpaid debts will be forgiven. However, if the debtor defaults on the payments, chapter 7 bankruptcy proceedings will be initiated to liquidate their assets.
With this option, debtors do not lose their assets to liquidation. What happens is that the trustee helps the firm to come up with a repayment plan for their debts. The plan must be presented to creditors, who will ask questions. After approval of the plan, the debtor will retain all assets and be required to make regular payments to the trustee every month to service their debts. After some time, all unpaid debts will be written off.
Ideally, bankruptcy should be considered after all other options have failed to yield any results. For starters, you should consider refinancing your debts. If this fails, you should consider consolidating your debts. If these two options, together with other debt resolution options fail, you should consider filing for bankruptcy to get bankruptcy protections.
After a firm has declared bankruptcy under this option, it will be almost impossible to purchase new equipment or sell existing equipment. This is because the trustee will have to approve major decisions, and their work is to ensure no asset is lost. As a result, growing or expanding the business will become a major challenge for the business.
Since there are many lawyers in the industry, there is need to do a comparison to identify the best lawyer for your needs. Ideally, you should make a shortlist of the most experienced bankruptcy lawyers in the city. After that, you should search for reviews and testimonials. After reading them, you should be able to identify the most suitable lawyer. A comparison of legal fees should also be done before a decision can be made.
There are many types of bankruptcies in existence. The most common, however, are; chapters 11, 13 and 7. Chapter 11 is basically business bankruptcy. It provides for debt restructuring. When a business has accumulated too much bad debt, the management can use this option to have their debts restructured and eventually forgiven.
When you need bankruptcy protections, you will be required to explain to your creditors as well as the court how you intend to service your debts. Obviously, your business must have a stable income and too much bad debt. The income must be enough to cover your overheads and payroll as well as leave something to go to your creditors. After making payments for several years, the firm will be forgiven of all its debts.
It is important to note that under this option, the trustee will not liquidate the assets of the debtor. Instead, regular monthly installments are made by the debtor to offset the outstanding balance. After a few years, all unpaid debts will be forgiven. However, if the debtor defaults on the payments, chapter 7 bankruptcy proceedings will be initiated to liquidate their assets.
With this option, debtors do not lose their assets to liquidation. What happens is that the trustee helps the firm to come up with a repayment plan for their debts. The plan must be presented to creditors, who will ask questions. After approval of the plan, the debtor will retain all assets and be required to make regular payments to the trustee every month to service their debts. After some time, all unpaid debts will be written off.
Ideally, bankruptcy should be considered after all other options have failed to yield any results. For starters, you should consider refinancing your debts. If this fails, you should consider consolidating your debts. If these two options, together with other debt resolution options fail, you should consider filing for bankruptcy to get bankruptcy protections.
After a firm has declared bankruptcy under this option, it will be almost impossible to purchase new equipment or sell existing equipment. This is because the trustee will have to approve major decisions, and their work is to ensure no asset is lost. As a result, growing or expanding the business will become a major challenge for the business.
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Get a summary of the things to consider before picking a Chapter 11 Monterey attorney and more information about a knowledgeable lawyer at http://www.centralcoastbankruptcy.com/bankruptcy-overview.html now.
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