Bankruptcy can help the debtor to get some relief from his mounting debts. This allows the individual to release some or all of the debt and give him some time to restore its financial position without any harassment by creditors. As individuals, businesses, too, may face financial problems.
Bankruptcy is a last option for situations when nothing seems to work. In deciding to opt for bankruptcy can be difficult and you need to consult with prominent bankruptcy lawyer before taking any step. Filing a bankruptcy case is one of the major decisions. It has its own legal complications. Only special counsel will know the consequences of this lawsuit.The two most common chapters of bankruptcy Chapter 7 bankruptcy and Chapter 13 bankruptcy.
Chapter 7: This chapter of bankruptcy is also called "liquidation of assets. It is ideal for businesses that simply could not recover and will have no gain on restructuring of the company. In short, this case shows that the business took on too heavy duty to pay. With the filing of a bankruptcy case under Chapter 7, the court will appoint someone to take responsibility for the assets of your business and distribute them among the creditors. Chapter 7 has advantages for businesses that have the same owner, as it frees himfrom all his debts. The partnership of business and corporations can not qualify for this benefit.
Chapter 13: This option, which is popular with consumers but is also suitable for individual entrepreneurs. If you decide to file for bankruptcy under this chapter, the court will keep a portion of your assets and you will need to prepare a plan for how you will pay your creditors. It depends on your income and assets. This is especially useful for business owners, business and personal assets are interrelated.
Filing a bankruptcy case in any of these chapters is vitally important decision and should be taken with all the necessary aspects of the situation. Talk with a qualified and experienced lawyer can help you decide on this.