By Ann Fox When a business or individual consumer accumulates a lot of bad debt, the only option they may have for getting rid of the debt...
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 numerous disadvantages of becoming bankrupt. For one, it will limit your access to affordable credit. Secondly, it will reduce your chances of getting a better or job, renting a decent house or even renting a car. Therefore, you need to consider all the pros and cons before making a decision because you do not want to have regrets later on.
If you become bankrupt, and you are the holder of an office that requires you to be financially responsible and not bankrupt, you may be fired. After all, you cannot handle other peoples money if you have a poor track record of managing your own cash. If you are a bankrupt job seeker, there are many jobs that you will not be able to qualify for.
It is always recommended you consult a suitable lawyer before deciding to become bankrupt. This is because you may not be fully aware of the legal consequences of becoming bankrupt. By consulting a lawyer, you will be able to make an informed decision. To find the right lawyer, simply search the web and compare their experiences and reputation before making a decision.
Student loan debts, alimony and child support payments cannot be written off when you become bankrupt. If these debts form a huge chunk of your outstanding debts, therefore, you should rethink your decision to become bankrupt. After all, this option will only complicate matters for you. Since you may not know what this law entails, you must hire a competent lawyer to explain the contents of the Federal Bankruptcy Act to you.
After submitting the necessary paperwork, the court will appoint a trustee to oversee the whole process. The trustee is usually an independent, unbiased, legal and business expert who will put the finances of the applicant under a microscope to determine whether or not they qualify for the chapter they are requesting.
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 numerous disadvantages of becoming bankrupt. For one, it will limit your access to affordable credit. Secondly, it will reduce your chances of getting a better or job, renting a decent house or even renting a car. Therefore, you need to consider all the pros and cons before making a decision because you do not want to have regrets later on.
If you become bankrupt, and you are the holder of an office that requires you to be financially responsible and not bankrupt, you may be fired. After all, you cannot handle other peoples money if you have a poor track record of managing your own cash. If you are a bankrupt job seeker, there are many jobs that you will not be able to qualify for.
It is always recommended you consult a suitable lawyer before deciding to become bankrupt. This is because you may not be fully aware of the legal consequences of becoming bankrupt. By consulting a lawyer, you will be able to make an informed decision. To find the right lawyer, simply search the web and compare their experiences and reputation before making a decision.
Student loan debts, alimony and child support payments cannot be written off when you become bankrupt. If these debts form a huge chunk of your outstanding debts, therefore, you should rethink your decision to become bankrupt. After all, this option will only complicate matters for you. Since you may not know what this law entails, you must hire a competent lawyer to explain the contents of the Federal Bankruptcy Act to you.
After submitting the necessary paperwork, the court will appoint a trustee to oversee the whole process. The trustee is usually an independent, unbiased, legal and business expert who will put the finances of the applicant under a microscope to determine whether or not they qualify for the chapter they are requesting.
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