Bankruptcy

Chapter 7 Business Bankruptcy

Companies fail daily, they fail so frequently that starting a business is one of the most risky financial decisions of any body’s life. Sometimes the risk pays off, but often times it does not and that’s understandable. If you are part of a failed company, the best thing you can do is take a breath and begin thinking of a way to salvage the situation. This may even include bankruptcy. Probably the most dreaded thing for any entrepreneur to even think about. However, with chapter 7 bankruptcy, a business owner can finally put aside that chapter of their life and begin anew.

Chapter 7 business bankruptcies works much like the conventional idea of bankruptcy, but it is much more compromising than most people may think. Upon approval of the bankruptcy petition and all other necessary financial documents, assets are divided into exempt and nonexempt assets. Nonexempt assets will be then be liquidated at auction and used to repay business debts. Exempt assets such as clothing, motor vehicles, and pensions are able to be kept to maintain a basic standard of living. Debts are then divided into secured and unsecured debts. Perhaps one of the most significant aspects with chapter 7 is the ability to discharge a majority of unsecured debts. These include any asset that is not secured with tangible property such as credit card debt and medical bills. If unsecured debts are unable to be discharged, many creditors will accept a reduced settlement amount for these debts which can be 50% lower than the original. According to Bradford Law Offices, PLLC, the majority of a company’s debts will in fact be eligible for discharge.

Businesses are difficult to own and operate, and it is inevitable that some companies are bound to fail. The thought of bankruptcy is hard for most entrepreneurs to stomach as they believe it is the mark of failure, but this is a unhealthy way of thinking. Bankruptcies need to be viewed as an opportunity for business owners to start over and create a better business from what you learned in the past.

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Can Filing for Bankruptcy Be A Good Choice?

Financial woes can get the better and best out of any of us. After all, not everyone makes savvy financial decisions in their youth and it was always easy to think “when I get money, I’ll pay all of my debt quickly!” as if their future selves would just magically have the answers to their then-present selves. The world we live in is one that celebrates in euphoric immediate gratification and it was this kind of spend first, ask where you’ll get the money later kind of thinking that sent so many adults today spiraling into financial ruin at such an early age.

So when you’ve reached the point where you consider bankruptcy, you might be wondering – what good can filing for bankruptcy ever do for someone in financial crisis?

The answer is that, if your situation calls for it, filing for bankruptcy can help you change everything for the better from the span of a few months to around three to five years instead of spending a lifetime in debt. According to the website of  Erin B. Shank, PC, Killeen bankruptcy attorney, if bankruptcy is the most advisable course of action for your given situation, things can only start to improve from there. For a start, once you file for bankruptcy, your creditors will be notified that you have filed for bankruptcy and the endless phone calls that you fear will cease to happen.

A lot of people tend to just shrink away from their financial problems once thing start to seem too overwhelming to handle. If you sweep your problems under the rug too often and do nothing to start rectifying the situation, you may face lawsuits and more trouble than you would have done if you had just made the first step into getting back a decent credit score.

Bankruptcy can allow for you to follow your own bespoke payment plan, depending on your income and lifestyle so that you needn’t have to pay out too much at once and end up in a difficult living situation. If you want to know what your options are and if filing for bankruptcy is on the table, it is recommended that you consult your potential solutions with a reputable bankruptcy attorney of your choic

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