Financial roadblocks can bring any business to a standstill due to mismanagement of funds. Unpaid debts can also lead to an imminent prospect of a business closure. In such a situation, it would be prudent to seek a bankruptcy filing option to avoid the loss of business and possible shutdown of business operations. When should one file bankruptcy The basic aim of filing bankruptcy through the best bankruptcy attorney MD is to avail an opportunity to begin again by stopping creditors in their tracks. However, one must also understand the consequences of such a decision. The most pressing reason for the bankruptcy filing is the irritating calls from debt collection agencies and their harassment. Plan a fresh start With an automatic stay, one can get relieved from these pressure tactics and plan a fresh start without the stress of replying to continuous calls from creditors. The automatic stay is the most immediate benefit of a bankruptcy declaration because creditors are prevented from property attachment and eviction. Businessmen are also protected against the possibility of snapping up their utilities such as water and electricity. This allows the smooth functioning of the business activities. Bankruptcy declaration saves your business from the embarrassing situation of closure and eviction. Importance of assessing financial aspects Decision to declare bankruptcy should never be an impulsive one. It would be advisable to have a meeting with creditors to explore the possibility of any solution by using your negotiation skills. Several reputed credit agencies and financial institutions have designed policies for amnesty or restructuring of overdue loans due to the current situation of economic uncertainty. Availing a loan to pay back existing loans is an extremely unhealthy sign. You must find and hire the best bankruptcy attorney MD for the bankruptcy declaration process. Before going ahead with the plan to file bankruptcy it would be appropriate to analyze your ability to retain your income and assets by completely settling the dues. If the income and assets are not sufficient to get rid of the overdue debt, then the declaration of bankruptcy may be justified. Before considering bankruptcy filing Any experienced corporate bankruptcy lawyer MD is your best resource to know key aspects of types of bankruptcy declaration end possible consequences of the action. Incidentally, the most sought-after types of declarations are Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. In case the income sources of an individual are falling short of repaying the dues, then a Chapter 7 Bankruptcy would help settle large amounts of dues that may be associated with hospital expenditure or dues of credit card expenses. Entrepreneurs who want to buy time as a breather to start afresh can think of filing a Chapter 13 Bankruptcy declaration that allows debt reorganization with the assurance of prevention of foreclosure of assets. Hiring a bankruptcy lawyer Bankruptcy is an overwhelming situation as there are multiple issues and consequences to address. The legal process of bankruptcy filing is also extremely complex and without the support of the right legal resource, you will encounter several roadblocks and delays. Searching for the best bankruptcy attorney MD is easy if you have a good rapport with some lawyers who can guide you in choosing the right legal resource.
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Dealing with a financial crisis is stressful. Filing for Chapter 7 or Chapter 13 bankruptcy, however, can resolve your problems. Chapter 7 wipes out in quick time certain debts such as personal loans, medical bills, and credit card balances, sometimes in less than 4 months. It is no wonder that a Prince George's County bankruptcy attorney always asserts, “The sooner you file, the faster your credit score will recover”. Chapter 13 is a better option for you if you are facing more challenging issues such as vehicle repossession or home foreclosure. This chapter is also an appropriate one if you are earning too much to qualify for Chapter 7. Chapter 13 allows you to: • Retain all of your property. • Catch up on missed mortgage. • Pay off debts that cannot be wiped off under Chapter 7. • Eliminate your second mortgage. Chapter 11 is similar to Chapter 13 but is crafted for a specific type of debtor.
It is meant chiefly for businesses to either liquidate or reorganize debts. As the Covid-19 pandemic persists, many businesses have filed for bankruptcy protection. Many financial consultants say the filings are likely to accelerate. But cases did slow down in June this year driven chiefly by the federal government’s programs for stabilizing the economy, and also due to efforts by businesses to bolster their cash flow by issuing new bonds. The worrying news is the corona virus may permanently shut millions of small businesses in the coming days. It is a crisis that is likely to adversely affect the economy for generations. Many of them may vanish permanently. But several companies that are leveraging the Small Business Restructuring Act, which took effect in February this year, seem to be weathering the pandemic. Before this law came into effect, the only recourse for a struggling business was to opt for Chapter 11. Though Chapter 11 allows a business to get a fresh start, the process is long and expensive. On the other hand, the newly enacted Small Business Reorganization Act finds middle ground between Chapter 7 and Chapter 11, making it suitable for small business debtors. This act lessens costs and simplifies the plan confirmation processes to enhance small businesses’ ability to survive bankruptcy and retain control of their business operations. Several attorneys for long have been unhappy that the high cost and complexities of Chapter 11 were making it too difficult for small companies to reorganize. In these difficult times, you want your business to survive whichever way it can. A business lawyer can be of great help. Before you choose one, assess your businesses’ financial situation and set up your ultimate objectives. Choose one among bankruptcy attorneys ideally through referrals or legal directories. Rowena N Nelson reviews are very encouraging. A prominent review says, “This legal firm guides you through a complicated process competently”. Business bankruptcy is a challenging situation. A good business attorney with the right guidance can minimize the damage and allow you to get back on your feet. |
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