Business Finance

Posts Tagged ‘Bankruptcy’

It is really a dream of many individuals to own their very own company. The thought of employed by themselves, setting their own working hours and selling services or products in which they’re individually interested seems extremely appealing. What most people do not realize, however, is the quantity of responsibility that includes running their own business. From product or service sourcing to advertising to sales, accounting, and taxes, there are lots of responsibilities involved in running a business which take time, and suitable understanding, to do. Modest mistakes can lead to big difficulties for the company’s stability.

People who are not ready to take on or outsource the responsibilities discover fast that they have bitten off a lot more than they are able to chew. Individuals who did not enter having a good and sound strategic business plan quickly find themselves in trouble- and several times, this particular trouble ends up being financial. Whenever a business owner finds himself in dire straits, they ought to consult a chapter 11 bankruptcy attorney and discover what their rights under federal law are just before simply giving up on the business.

Did you know that if you do not file a reaffirmation with your mortgage company after you file for bankruptcy that the mortgage company does not have to report your good payment history?

Yes, that is correct. If you file a bankruptcy and do not include the mortgage in the bankruptcy, you still must file a reaffirmation with the mortgage company within 30 days of the discharge of the bankruptcy.

By not doing so, the mortgage company will then report to the credit bureaus that your mortgage has also been discharged. However, they will not tell you that. Instead, you will continue to make your mortgage payments and they will be glad to take them.

It won’t be until years later that you discover that they have not been reporting your good payment history to the credit bureaus. Then when you have a credit history pulled to get a new mortgage or a car loan, you may not understand why your credit score is still low.

People file bankruptcy for a number of reasons. Some because they lost a job or came down with an unexpected illness. Others because they have simply overextended themselves and need a fresh start. Whatever your reason, It is very important that you understand a few basic things about bankruptcy. So here we go. Here are 4 things you should know before filing bankruptcy.

You must list all of your debts – When you file bankruptcy you must list every single debt you have. It doesn’t matter if it is current or not. It must be listed. Do not intentionally leave of any creditors. It is illegal and can come back to haunt you.

You must list all properties and assets – Most of your assets are protected and cannot be seized by the court during a bankruptcy proceeding. However, if they are not listed, they cannot be protected. So make sure you list every asset and property that you own. It is illegal not to.

There are certain types of legal representation that deal specifically with the financial struggles of a person or company. They are trained and certified in handling the re-organization of overwhelming debt, and they are known as bankruptcy lawyers. The majority of these filings in the United States are cases organized under Chapter 7 since this is the fastest and less complex form available. This type accounts for approximately 65% of consumer filings.
Bankruptcy lawyers advise and council their clients through the legal proceedings and paperwork associated with filing a Chapter 7 bankruptcy.

It is important that the debtors file their eligibility paperwork at the proper time, and that all the particular requirements for qualification are fulfilled. The specially-appointed attorneys assist their clients in these matters, as well as protect their rights throughout this process. They also help ensure that their clients’ assets are protected if applicable to the situation.

In the land of bankruptcy, it is easy to be swayed by cheap deals and promises of a quick and painless hearing. Lawyers can be very persuasive. Try to look past the smokescreen to avoid the unfortunate circumstance of hiring a bad attorney.

The Absolutely Worst Thing to Do When Filing

Waiting around for the right attorney to fall into your lap is actually one of the worst things to do. While it is one of those parts of your financial crisis that feels much like choosing your undertaker, it can’t wait. The last scenario you want on your hands is a pack of wild hyenas at your front door, ready to tear you to shreds for not paying your bills. You should make it a top priority, almost like a second job, to interview and consult as many bankruptcy attorneys and other sources as it takes to find one that fits your needs.