Filing for Bankruptcy
A company or individual who decided to file for bankruptcy now faces the reality of the beginning of the bankruptcy process. Basic as it may seem, many are not aware of the initial steps in filing for bankruptcy. A legal process such as this requires careful steps to meet each requirements required by the courts.
A company or individual filing bankruptcy now hires a bankruptcy attorney to assist in the bankruptcy process. A personal bankruptcy is a little less difficult to manage since this involves the individual’s household assets and liabilities whose documents may take less time to gather. A corporation, on the other hand, that flies for bankruptcy will need more time to collect its financial documents due to a much bigger operations it is involved with. The financial documents include, but not limited to, list of all debts, assets, liabilities, tax documents and loans. Forms are also filled up which will be submitted along with all these financial documents.
The type of bankruptcy should be determined based on what grounds is appropriate for the petitioner(s). Chapter 7 may be filed by an individual, proprietor and corporations seeking for the discharge of most debts. Chapter 11 is for corporations and partnerships and Chapter 13 only caters to individuals. Both chapters generally require the petitioners to provide a re-organization or re-payment plan to be presented to the trustee and creditors for the hope of regaining their financial control of finances over a period of time.
As mentioned, a bankruptcy attorney may best represent a petitioner filing for bankruptcy for its technicalities. Missing out on important areas during the bankruptcy process will only cause delays and further financial expenses for the petitioners.
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