Bankruptcy is a debt resolution option of last resort. Ideally, debtors should consider refinancing or consolidating their debts before they choose to have the court declare them bankrupt. If you have decided to go on with this option, however, you should hire a competent lawyer to help you file a chapter 11 Oakland, CA.
This legal option provides for debt restructuring for business debt. A trustee is normally appointed to act as the administrator of the business. The business managers will be required to draft a repayment plan based on their income. Usually, even a payment of just a few hundred dollars every month can be accepted to repay a debt of hundreds of thousands of dollars over a fixed repayment period, usually around 5 years. What is left unpaid after this period is often written off.
If your business is declared bankrupt under this chapter, you cannot hire any new staff, buy new equipment or expand the company. Furthermore, you cannot sell any asset that belongs to your business. Doing this is illegal. The trustee will also have to be involved in any decision making processes. After all, they are the new administrators of the firm.
In case a company fails to meet the terms and conditions of the repayment plan, the trustee will initiate chapter 7 bankruptcy proceedings. This will force the company to close shop because all their assets, including inventory, will be liquidated. That is why business owners need to be careful not to default.
This bankruptcy can be involuntary or voluntary. If suppliers and creditors do not get what is due to them, either due to your inability or refusal to pay, they can have your business declared bankrupt. This will enable them to recover their funds through legal means. Business owners can also rush to court to get protection from creditors by seeking to be declared bankrupt voluntarily.
Hiring a reputable lawyer to advice and represent you during the bankruptcy proceedings is a good idea. This is due to the fact that there are many legal jargon that you may not understand. You also want to know about all the legal consequences of becoming bankrupt. For this reason, you should hire a suitable lawyer to help you deal with the trustee.
If your business is declared bankrupt, accessing any line of credit will become difficult. Procuring goods on credit will also become impossible. After all no supplier will want to take a risk to supply goods or services to your business knowing very well that you might default. This means that bankruptcy can make it difficult for you to run your business.
It is important to note that not every business or organization can qualify for chapter 11. This is because debtors need to have a reliable source of income to qualify. This means that any business that does not generate enough revenue, or one that always makes huge losses cannot qualify. If the business fails to honor the repayment plan drafted by the managers, the trustee will make arrangements for a public auction to liquidate all the assets belonging to the business.
This legal option provides for debt restructuring for business debt. A trustee is normally appointed to act as the administrator of the business. The business managers will be required to draft a repayment plan based on their income. Usually, even a payment of just a few hundred dollars every month can be accepted to repay a debt of hundreds of thousands of dollars over a fixed repayment period, usually around 5 years. What is left unpaid after this period is often written off.
If your business is declared bankrupt under this chapter, you cannot hire any new staff, buy new equipment or expand the company. Furthermore, you cannot sell any asset that belongs to your business. Doing this is illegal. The trustee will also have to be involved in any decision making processes. After all, they are the new administrators of the firm.
In case a company fails to meet the terms and conditions of the repayment plan, the trustee will initiate chapter 7 bankruptcy proceedings. This will force the company to close shop because all their assets, including inventory, will be liquidated. That is why business owners need to be careful not to default.
This bankruptcy can be involuntary or voluntary. If suppliers and creditors do not get what is due to them, either due to your inability or refusal to pay, they can have your business declared bankrupt. This will enable them to recover their funds through legal means. Business owners can also rush to court to get protection from creditors by seeking to be declared bankrupt voluntarily.
Hiring a reputable lawyer to advice and represent you during the bankruptcy proceedings is a good idea. This is due to the fact that there are many legal jargon that you may not understand. You also want to know about all the legal consequences of becoming bankrupt. For this reason, you should hire a suitable lawyer to help you deal with the trustee.
If your business is declared bankrupt, accessing any line of credit will become difficult. Procuring goods on credit will also become impossible. After all no supplier will want to take a risk to supply goods or services to your business knowing very well that you might default. This means that bankruptcy can make it difficult for you to run your business.
It is important to note that not every business or organization can qualify for chapter 11. This is because debtors need to have a reliable source of income to qualify. This means that any business that does not generate enough revenue, or one that always makes huge losses cannot qualify. If the business fails to honor the repayment plan drafted by the managers, the trustee will make arrangements for a public auction to liquidate all the assets belonging to the business.
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