The bankruptcy monster is knocking at your business door. This means that you will not be able to pay your debt on time. Can you claim bankruptcy on IRS debt? It could be your top question on your browser.
At this point, only one question will baffle you. “Should I file for bankruptcy”? To be honest, this will solve your problem and probably give you a clean slate.
Bankruptcy may be a new start, and it is the best decision in certain instances. Can you file for bankruptcy and keep your business? By doing so, you can avoid inconveniences in the future for your firm.
This could be your first time to look for bankruptcy services; another baffling question giving you a headache could be, can you file bankruptcy in a different state? Yes, and this could be possible after moving, but it is not encouraged since it is the most complicated, since you need to know which bankruptcy service well suits your needs.
There are a lot of questions you need to ask yourself before filing for bankruptcy. Can you file bankruptcy on being declared bankrupt? Yes, coming up are three common questions about filing bankruptcy.
If you’re trying to figure out how to file for bankruptcy, you likely have a number of questions about the process itself, the proper way to follow the procedures, and how it will affect your life. Unfortunately, it can often be difficult to find the bankruptcy help you need to ease your concerns and move forward with confidence. Below are answers on some of the most common questions people have about financial decision to help you determine the best course of action for your specific case.
What Are the Different Types of Bankruptcy?
There are five different types of bankruptcy filings: chapters 7, 9, 11, 12 and 13. Most of these types are not used by individuals, such as chapter 9, which is designed for municipalities, and chapter 11, which is primarily used by large corporations. Meanwhile, chapter 12 bankruptcy is specifically meant for family farmers. In the end, the average American will likely file for chapter 7 or chapter 13 bankruptcy.
But What is the Difference Between Chapter 7 and 13 Bankruptcy?
Chapter 7 is the most common type of bankruptcy used by individuals. Also called straight bankruptcy or liquidation, the court appoints a trustee to help administer the process. This option is preferable to many, as the petitioner is usually allowed to keep their household goods and clothing, and can even keep their home and vehicle as long as the equity rates are low enough to be exempted. Chapter 7 bankruptcies typically take four to six months, and most debts are extinguished through a discharge.
In contrast, a chapter 13 bankruptcy lasts for the duration of a debt repayment plan, which can last anywhere from three to five years. Past due bills must be paid in full, but general, unsecured creditors will only be a small percentage. Individuals may also be able to keep their cars and homes, and debts will be extinguished through a discharge.
Do I Need Help With Filing Bankruptcy?
While it is not required that individuals obtain help filing bankruptcy, a local bankruptcy attorney may be instrumental in helping you figure out how to file for bankruptcy. This is especially true due to several laws passed in 2005, which now require individuals to undergo credit counseling before they file for Chapter 7 and undertake a financial reorganization under Chapter 13, among other stipulations. A bankruptcy lawyer is usually the best resource when it comes to navigating these rules and following proper procedures.
Do you have any further questions about how to file for bankruptcy? Ask them in the comments below!
Get more on this here.