Filing Bankruptcy – When Is the Right Time

Bankruptcy is a condition where a business sector fails to work like before because of insufficient bank balance. The company owner will decide whether to declare bankruptcy or not based on the current condition of their business.

Usually deciding whether to declare bankruptcy or not becomes quite difficult call for the employer, since many rules and regulations should be considered while doing so. However, if done in the right time, there are chances that the declaration of bankruptcy will help you get back to your normal pace within no time.

If you are a company owner, and your company is at the brink of shutting down, then here are some alternatives that you can consider instead of planning to go ahead with your idea of declaring bankruptcy.

Is it Beneficial for Your Company to Declare Bankruptcy?

In order to declare bankruptcy, your first goal should be to check whether the company condition meets the regulations and specifications as described under “Chapter 13 bankruptcy”. Once you conclude that the company condition meets the rules, your next goal will be to set up the game plan, which can help you maintain and even complete the regular payment within the next four or five years.

By declaring bankruptcy, you will become eligible to obtain money for some expenses such as medical bills, clothing, food, utilities, etc, and every other such basic necessity. You can spare enough amounts for your mortgage and car loans, after you take care of your regular requirements.

Is there any Alternative Method to Pay the Bills and Loans?

Even though you find two or three part-time jobs, after completing your office hours, you cannot spare enough to clear loans, which will be around tens of thousands to million dollars. So, declaring bankruptcy will be your best option during such cases.

Is the Phase that you are going through, a Temporary One?

Most of the times, the finance department in any company follows the idea of clearing the bills and debts and even loans, as early as possible before taking fresh loan from different sources. When such business goes through the period of financial crisis, there are chances that the phase may pass within the next 3 to 6 months and the company might get back in business in no time.

When you lose your job, you will come under the benefits of unemployment as declared by that particular state. You should make sure that your credentials will help you get a job in no time. Based on this, you can decide whether to declare bankruptcy or not.

Are You a Perfect Planner of Monthly Budget?

Company owners usually stick to their monthly budget, and hence never try and spend money for such requirements that they cannot afford for now. However, some business managements do not follow strict financial plan, and hence end up losing the track of the amount that has been spent for some requirements.

Never try and decide to declare bankruptcy without proper knowledge about what exactly you are getting into. If you are not sure about bankruptcy laws, then you can take help from an expert in the field. Visit www.thebklawyers.com to find an experienced expert for the job.

Steps in Bankruptcy

When your finances seem like they are turned upside down, one of the options that you have is to file bankruptcy. Lawyer Wilson Neely, and others who work in the finance law field, may be able to help walk you through the steps of the filing process in order to streamline this step as much as possible.

The first thing that you need to do before you file for bankruptcy is to get as much information as possible. Read about all of your options and the ramifications of filing before you speak to an attorney. There are some things that you won’t be able to do after you file that you might not think about, such as buy a car or a house because the bankruptcy will be on your credit history. Avoid asking others about filing because they might not know all of the information that is relative to your situation. An attorney will know of the latest laws that have changed as well as the best way to pursue the filing process.

Many attorneys will speak with you for free at the initial consultation. At this time, you will be advised as to why you need to file for bankruptcy and the various kinds that you can file for including Chapter 7 and Chapter 13 Bankruptcy NY. If you feel like you’re ready to proceed after you have discussed your options, then the attorney will start the paperwork and determine how much you will need to pay. Some attorneys will accept payments for their services if you don’t have all of the money up front. There are some who will want all of the money paid before the paperwork can be filed in the court. If you are being sued by someone, then you need to pay the fees as soon as you can so that you can get creditors to leave you alone.

Once the petition has been drawn, you will want to review all of the details so that you can make sure all of the information is correct. If there is anything you need to add or remove, now is the time to do it because once the paperwork is filed, it usually can’t be changed. In order for the bankruptcy to be approved, you will need a certificate from a credit counselor. This is simply a small process where you will talk to a counselor who will help you get back on the right financial track after you file. The process can take place by phone, online or in person, and it usually only lasts for about an hour. The certificate must be received at least 180 days before you file. If this is not done within the specified amount of time, your case will likely be dismissed. After all of this is processed, your bankruptcy is filed in court. When the paperwork is filed, it will mean an automatic stay so that creditors can’t call you about your payments. A Trustee is assigned to help manage any payments that you do have to make, such as a mortgage.