There are many bankruptcy chapters that individual consumers, businesses, charities and other legal entities can use to get rid of their debts. This legal provision has been provided under the federal bankruptcy act, but state law also has some provisions that guide the entire process. If you have been weighed down by debt, you can use bankruptcy to get a fresh start. The key to success, however, lies in hiring a chapter 11 Oakland lawyer.
Chapter 11 is available to business and corporate debtors. Any legal entity that consumes debt can apply for legal protections under this option. However, the business must have a regular source of income, which is predictable and considerable. If not, liquidation may be recommended by the trustee.
Liquidation is the default type of bankruptcy. It calls for selling of all the assets owned by the business to pay off debts. The downside with this option is that it prevents the business from continuing with operations, so they may have to close shop. With debt restructuring, debts are restructured to allow for monthly payments throughout the bankruptcy period.
The main advantage of debt restructuring through chapter 11 over liquidation is that no assets are sold, the business can continue operating unhindered. This will make it easier for the debtor to clear all debts in question. Secondly, it can prevent a business from shutting down, which is always good news for the owner, the government and employees.
After filing the necessary paperwork in court, a bankruptcy trustee will be appointed. This is the person who will be in charge of the entire bankruptcy process. They will carry out due diligence on the financial position of the debtor to confirm that they meet all the minimum requirements for this option. If the debtor has a lot of valuable assets and an unreliable income, the trustee may recommend liquidation as opposed to restructuring of debts.
It is crucial to note that there are some debts that can never be written off. For instance, taxes must be paid no matter what. If you owe a lot of money in terms of business taxes, penalties and interest, you will be required to settle your debts as you continue to make payments towards settling your other debts.
The main benefit of a chapter 11 bankruptcy is that it allows businesses or legal entities to restructure their debts. Once the trustee has been appointed, the firm will be required to come up with a payment plan that they can honor with their average monthly income. This means that the business will continue to operate and retain all personnel as they service their debts.
It is important to note that bankruptcy is a serious legal process that nobody should opt for before considering the pros and cons. If you are running a successful business with a powerful brand, for instance, you should check all the cons to see if bankruptcy is for you. After all, your brand is too valuable to tarnish through a bankruptcy petition. Once your business is declared bankrupt, you may lose business, scare away potential investors and make suppliers uneasy when it comes to dealing with you. The upside is that you will be able to get rid of all your business debts.
Chapter 11 is available to business and corporate debtors. Any legal entity that consumes debt can apply for legal protections under this option. However, the business must have a regular source of income, which is predictable and considerable. If not, liquidation may be recommended by the trustee.
Liquidation is the default type of bankruptcy. It calls for selling of all the assets owned by the business to pay off debts. The downside with this option is that it prevents the business from continuing with operations, so they may have to close shop. With debt restructuring, debts are restructured to allow for monthly payments throughout the bankruptcy period.
The main advantage of debt restructuring through chapter 11 over liquidation is that no assets are sold, the business can continue operating unhindered. This will make it easier for the debtor to clear all debts in question. Secondly, it can prevent a business from shutting down, which is always good news for the owner, the government and employees.
After filing the necessary paperwork in court, a bankruptcy trustee will be appointed. This is the person who will be in charge of the entire bankruptcy process. They will carry out due diligence on the financial position of the debtor to confirm that they meet all the minimum requirements for this option. If the debtor has a lot of valuable assets and an unreliable income, the trustee may recommend liquidation as opposed to restructuring of debts.
It is crucial to note that there are some debts that can never be written off. For instance, taxes must be paid no matter what. If you owe a lot of money in terms of business taxes, penalties and interest, you will be required to settle your debts as you continue to make payments towards settling your other debts.
The main benefit of a chapter 11 bankruptcy is that it allows businesses or legal entities to restructure their debts. Once the trustee has been appointed, the firm will be required to come up with a payment plan that they can honor with their average monthly income. This means that the business will continue to operate and retain all personnel as they service their debts.
It is important to note that bankruptcy is a serious legal process that nobody should opt for before considering the pros and cons. If you are running a successful business with a powerful brand, for instance, you should check all the cons to see if bankruptcy is for you. After all, your brand is too valuable to tarnish through a bankruptcy petition. Once your business is declared bankrupt, you may lose business, scare away potential investors and make suppliers uneasy when it comes to dealing with you. The upside is that you will be able to get rid of all your business debts.
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Find an overview of the benefits of consulting a Chapter 11 Oakland attorney and more info about an experienced lawyer at http://www.centralcoastbankruptcy.com/chapter-11.html right now.
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