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.
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 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.
Becoming bankrupt can lead to job loss if you have a job that can only be handled by financially responsible persons. When you become bankrupt, therefore, you may be fired because you no longer meet the minimum requirements for holding that office. To make matters worse, finding a similar or better job will also be challenging.
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.
Alimony, student loan debts and child support back payments are some of the debts that cannot be written off. If your debt portfolio consists of these debts, and they form a significant portion of your debt, becoming bankrupt may not be such a great option. After all, you will still remain with these debts after becoming bankrupt. There are also other debts that are not covered under the Federal Bankruptcy Act. Your lawyer will provide you with the required information to help you make an informed decision.
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 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.
Becoming bankrupt can lead to job loss if you have a job that can only be handled by financially responsible persons. When you become bankrupt, therefore, you may be fired because you no longer meet the minimum requirements for holding that office. To make matters worse, finding a similar or better job will also be challenging.
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.
Alimony, student loan debts and child support back payments are some of the debts that cannot be written off. If your debt portfolio consists of these debts, and they form a significant portion of your debt, becoming bankrupt may not be such a great option. After all, you will still remain with these debts after becoming bankrupt. There are also other debts that are not covered under the Federal Bankruptcy Act. Your lawyer will provide you with the required information to help you make an informed decision.
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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