Filing For Business Bankruptcy

All people should be aware of the abundance of information regarding filing for chapter 13 bankruptcy, and especially if you hold a business or even if you are just planning to start up a business in the near future, this information is beneficial to you.

Chapter 7 bankruptcy information would also apply here, but the chapter 13 bankruptcy information is going to be particularly important for you to be familiar with.

Things You Should Know

When talking about chapter 13 bankruptcy filing procedure information, this refers to the law that allows a borrower with a limited amount of debt and a stable income to pay off their bills under a court approved repayment schedule over a 30 to 60 month period. So from this chapter 13 bankruptcy information we can denote that only if you have a little amount of debt will you be able to go through under the chapter 13 bankruptcy law.

If you are in terrible financial trouble on the other hand, then you will need to research what your other options are since you may not be accepted for this. The plan is that you would be able to pay off all your debts under a 90 month period, and so if you owe hundreds of thousands of dollars clearly you are probably not going to be able to do that.

After looking at some of your financial records and depending on how willing you have been to pay your bills in the past the court will make a decision. They will take all of this under consideration and use it to establish whether or not they want to agree to put you on a repayment plan.

Another important piece of chapter 13 bankruptcy information involves what chapter 13 enables, and this is that it enables individuals with a regular income to develop a schedule to repay all or part of their debts. It offers numerous advantages, especially over liquidation under chapter 7. Perhaps most significantly of all, chapter 13 provides you the chance to save your home from foreclosure. This is especially important if you have a family, as you have probably lived in your home for some time now and undoubtedly want to stay away from foreclosure on the home.

One more major advantage of chapter 13 is that it will allow you to defer secured debts and extend them over the life of the chapter 13 schedule.

Although bankruptcy can undoubtedly be a blessing in some instances, you should recognize that it is not just a golden ticket out of your financial despair. You may not have to deal with all the debt and creditors as you once did, but you will acquire a giant hit to your credit and you could have most if not all of your nonexempt assets liquidated, and this includes any businesses that you may have and any credit cards that you may have. It will also remain on your credit report for up to ten years.