Sometimes because of financial circumstances beyond your control, declaring personal bankruptcy becomes the most logical option. Because of the societal stigma associated with filing personal bankruptcy, you may try other options that just get you deeper into debt. While personal bankruptcy is a crucial decision, it is not the end of the world and you can emerge from it in a better financial position.
Personal bankruptcy for business owners can complicate the process more so than the average bankruptcy. However, with the proper due diligence and the right guidance, you can eliminate most of the major problems associated with declaring personal bankruptcy as a business owner. Choosing the right bankruptcy lawyer and understanding all of the details of personal bankruptcy filings are essential in this process. Too many times people that file for bankruptcy do not understand the long-term financial implications and live to regret it. Given these complications, there are few items to consider before filing personal bankruptcy:
1. Examine all of your personal bankruptcy options.
2. Contact a few bankruptcy lawyers to obtain bankruptcy help and guidance.
3. Determine if you want to file for consumer bankruptcy.
Action Steps
The best contacts and resources to help you get it done
Understand Chapter 13, Chapter 7 bankruptcy and the process
The primary filing distinction between Chapter 7 and Chapter 13 bankruptcies is that you can keep some assets under Chapter 13 that you would have to liquidate under a Chapter 7 filing. There are other disparities between the two and it is prudent to know each and every one. In addition, you can file other types of bankruptcy besides these two but they are by far the most popular.
I recommend: Recognize how the process of filing for Chapter 7 and Chapter 13 bankruptcy works at
uscourts.gov. Determine the personal bankruptcy laws and information specific to the state in which you live from the website
BankruptcyInformation.com.
Obtain advice from a bankruptcy attorney
When filing for personal bankruptcy, the services of an attorney are imperative. Sometimes people will file too quickly or too late but retaining an attorney can give you an unbiased picture of the financial situation and help you make the correct decision.
I recommend: Complete the free bankruptcy case assessment form at
Totalbankruptcy.com. The website can recommend an attorney in your area from their network of bankruptcy attorneys. Obtain relief from debt without incurring costly legal fees by handling your own bankruptcy proceedings at
Socrates.com.
Make the decision whether to file for personal bankruptcy
As previously stated, bankruptcy is not something to take lightly but sometimes it is the best option. Because each financial situation differs greatly there is no simple or right answer.
I recommend: Analyze the business implications of personal bankruptcy published on the
Moran Law Group website. Understand the common myths of filing for personal bankruptcy at
Mortgage Knowledge Base.
Tips & Tactics
Helpful advice for making the most of this Guide
- If you decide to file for personal bankruptcy be sure to keep the personal bankruptcy records for at least seven years. Often companies listed on the bankruptcy sell your debt during the filing and those companies will try collect the debts even after the filing.
The official source of Personal Bankruptcy is the Personal Bankruptcy page at Business.com
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