THE BANKRUPTCY SITE » chapter 7 bankruptcy

Filing Chapter 7 Bankruptcy

bankruptcysite — Sun, 25 Jul 2010 19:06:53 +0000

Referred to as ‘straight bankruptcy’ is a situation where the debtor hands over all their surviving property to a bankruptcy trustee is the chapter 7 bankruptcy. It is converted in to cash by the trustee in order to allocate amongst the creditors. The debtor in the case of a chapter 7 bankruptcy receives a release of all dischargeable debts within approximately four months. Theories aside, many people who claim chapter 7 bankruptcy have relatively no large assets to lose as they have lost it all . This will mean a new beginning for the bankruptcy party is required.

The debtor in order to be able to receive Chapter 7 bankruptcy, must be an individual, partnership of corporation or any other business unit. Under File chapter 7 bankruptcy, a sole individual cannot claim. An exception is made only if the debtor receives credit counseling from an approved agency within 180 days before filing for chapter 7 bankruptcy. The debtor must fill out a petition with the bankruptcy court regarding their assets in order to receive Chapter 7 bankruptcy. A schedule of assets and liabilities, a schedule of current income and expenditures and a statement of financial affairs with the court must also be filed in addition .
The main reason for bankruptcy is to give an honest individual a new beginning. Therefore the debtor is not legally responsible for discharged debts. In the case of discharging under chapter 7 bankruptcy, it should be known that it is only an option for individual debtors as opposed to the previously mentioned scenario. Though this is the general procedure, an individual’s right of discharge is not to be taken for granted as some categories of debts are not discharged.

It is a smart option to figure the best choice for you regarding the chapter 7 bankruptcy, with the help of a qualified attorney. The need of filing a bankruptcy should be finalized before anything. Online evaluation forms are also available. Always make sure that you provide your attorneys with complete and correct information to gain a better evaluation on your case. It is also essential to remember that the debtor receives a discharge on all dischargeable debts in chapter 7 bankruptcy. Therefore though in some cases this would mean losing all ones assets, in the majority of cases, this isn’t so. Therefore it is essential that you have a bankruptcy attorney before making any rash decisions.

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Filing for Bankruptcy

Bankruptcy-Site.com — Sat, 29 Aug 2009 08:00:00 +0000

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.

Consequences of Filing Bankruptcy

Bankruptcy-Site.com — Sat, 29 Aug 2009 07:49:00 +0000

Filing bankruptcy just to save a company from its financial problems is not a reasonable thing to do. Bankruptcy is not an easy way out. There is a lot information saying that bankruptcy poses certain effects which may not be entirely beneficial for your company.

Looking at bankruptcy’s good points, this is a guarantee that it will free the company from its financial debts. There will be no more harassment from creditors or long list of loans to pay even if the company is not earning anymore. This is if a company is granted a Chapter 7 type. In other cases, although some companies may not be eligible for Chapter 7, another petition may be filed under Chapter 11 which will also take away a huge chunk of financial obligations from the company, at least temporarily, until it is able to re-organize and rebuild its operations. In due time, a company can repay all its debts to its creditors.

A company considering filing bankruptcy should also take an effort to look at its consequences. One is the negative effect of bankruptcy for your business. Imagine, a potential investor or client will hesitate in doing business with a company who has a history of bankruptcy. The bankruptcy consequences extend until after the company has been cleared of its debts. The stigma created by filing bankruptcy will definitely stay a long time. Another of bankruptcy consequences is the fact that creditors will no longer provide flexible loan payment terms for you. You are considered a high risk for financial institutions. Higher interest rates will also be carried on each loan you take as part of bankruptcy consequences .

No matter how difficult a company experiences on the financial side, its owners should exhaust all efforts to sustain it through other possible options like debt consolidation and the likes. If bankruptcy is the only solution possible in some dire cases, being aware about bankruptcy consequences is the first step to do in order to know what to expect from filing bankruptcy.