It is everybody’s dream to have a business of his or her own. It is where all the hard work of working as company slaves goes to. It is important to save a lot for the future. And a good way to have a sure income is to have a business of your own. Although it is not enough that you have money to start up a business, you should also know how a business works. Basic knowledge of how money can go in and out of a business is a must. It is never a shame to ask for others’ help regarding this one. It is better to let professionals in the field of business and marketing guide you in maintaining the fruits of your hard work and labor. Do not let your hard-earned money go to waste. Secure a good strategy to avoid bankruptcy.
Bankruptcy is a term used to denote a person that is unable to pay his/her debts to creditors. This marks the end of a business career. Legally speaking, bankruptcy is usually filed by a business owner who cannot repay any money that he/she owed. In doing so, filing bankruptcy provides an avenue for people who owe money to someone to discard the debt or better yet come up with a plan on how to repay the borrowed money. This kind of case is usually filed in the federal courts.
There are six types of bankruptcy according to the United States Code. One of which is the Chapter 7 bankruptcy law or the straight bankruptcy law. This type of bankruptcy covers those individuals, couples, or businesses that are facing a dilemma on how to repay the money they borrowed. With this, anyone can assure a fresh new start on earning money for the purpose of repaying debts. The debtor, in return, must surrender the properties that he/she owns to the court. The court will be the one who will divide the acquired properties based on the number of creditors and the amount of debt to be paid. It is only the house and the vehicle of the debtor that is spared in this kind of bankruptcy. In this process, the excess properties that the debtor gave up will be liquidated and will act as a payment for those people or companies they owe money with.
There are pros and cons in declaring bankruptcy. Yes, bankruptcy will reflect on the profile of the person that filled it. There is at most 10 years of temporary appearance of this case in credit reports. Here is where straight bankruptcy enters. With this kind of bankruptcy, it will only take around three to six months before the record on bankruptcy will be lifted. Other possible downfalls with straight bankruptcy are that the debtor will lose a lot of expensive and luxurious possessions and it will cause a lot of loss in the credentials of the debtor.
If you are encountering such kind of dilemma, there is a bankruptcy attorney that is ready to guide you all throughout the process. It is a very long process so make sure that you entrust everything to an attorney that knows everything regarding bankruptcy.