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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A common belief about bankruptcy is that it absolves all of your debts. This is a wrong belief. Whether personal or business bankruptcy, going bankrupt involves selling your assets or shutting down your business or paying hefty fines. It’s not as easy as it seems to be.
Business people usually think that they can simply declare themselves bankrupt in case their business fails. However, the word “simply” is deceptive here. It isn’t simple, as bankruptcy is a complicated law by itself. Also, it is not always the best choice to file for bankruptcy. So, before you make a decision, it is good to consult a small business bankruptcy lawyer in MD. He or she will guide you into making the right decision and in proceeding with the bankruptcy filing steps correctly. Should small businesses file for bankruptcy? This is an important question that a small business owner must get an answer to before they hastily decide to file for bankruptcy. According to a reputable lawyer, if your business is limited-liability entity, you can simply shut it down and walk away. You need not file for bankruptcy. That’s why business lawyers usually advice new business people to register their company as LLC or Corporation or Limited-Liability Entity. This helps you safeguard your personal assets in case your business fails and the creditors hound you. This isn’t all Even if you run your business as sole proprietorship or in partnership, you can still bring your personal assets to risk, if you fail to run your business properly. Several reasons play a role for this to happen. According to lawyers, You may not have separated your business finance and personal finance properly. In this case, the court will realize that there is actually no separate business entity. It will disregard your entity and put your personal property at risk. Banks and other lenders are not so eager to finance new businesses. They are afraid they won’t have a means to recover in case the business owner defaults on the loan. Due to this, many business owners put their personal property at stake as a “personal guarantee” to get approval for loans to start the business. Some even get financing through personal collateral, like home. This puts both your business and your home at risk, in case your business fails. Avoid getting in such a situation where in you put your personal assets at risk along with the business. Hire an experienced small business bankruptcy lawyer in MD and make the right legal moves. |
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