A majority of startups and other new business ventures fail in the very first years of inception. Bankruptcy and financial ruin are not restricted to new and small businesses. Recognized names like Lehman Brothers Holdings Inc., General Motors, Enron Corp. Chrysler are just some of the household names that have filed bankruptcy petitions in this past decade. If your business is failing, take the advice of a bankruptcy lawyer.
When outstanding debts surpass the value of non-exempt assets and you are unable to keep paying bills and salaries on time, your business could be heading for financial trouble. Instead of feeling hopeless and depressed, seek legal help from an experienced bankruptcy lawyer. Thousands of individuals and businesses are seeking bankruptcy as the last resort to seek debt relief.
Many American families are facing severe credit problems causing them to struggle to pay debts and bills. Uncontrolled expenditure is often presumed to be a cause for bad credit. However, credit problems can hit any family anytime right out of the blue. An unexpected medical expenditure, sudden loss of income and a divorce can cause an individual or family to be all of a sudden knee deep in debt and unpaid bills. Creditors can begin to harass you and your family with phone calls for debt recovery, or take legal action to recover their loans.
Bankruptcy is a last ditch effort to wipe the slate clean, or manage your debts in a more systematic way. Chapter 7 of the bankruptcy code offers a fresh start to debtors by wiping off unsecured loans like credit card debt, medical bills and other loans. The debtor can prevent creditors from seizing the family home and car and any further garnishments and legal action against the debtor would go into an instant stay.
Chapter 13 is designed to reorganize personal debt to allow individuals to pay off most of their debts over a time frame. When the debtor has a regular source of income, but is unable to pay off immediate debts for some reason, a bankruptcy lawyer can advise filing under Chapter 13. Unlike Chapter 7, most of the debt is not erased but the court recommends a plan and time frame (usually 3-5 years) in which to repay the outstanding loans from future earnings. As long as the debtor follows payments according to plan, outstanding debts at the end of the period are discharged. The debtor will, however, be obligated to pay off student loans, child support, alimony, long term secured obligations and certain taxes, compensation for criminal offenses like drunken driving etc. For more information on legal options available to you, consult a bankruptcy lawyer.