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.
While the default type of bankruptcy calls for liquidation of assets owned by the firm to offset their debts, this option provides for reorganization of debts. The debtor is declared bankrupt, and gets all bankruptcy protections. In return, they agree to make monthly payments to the trustee, who distributes the payments to all the creditors. This goes on throughout the bankruptcy period, after which all unpaid debts are written off.
The main advantage of this chapter is that it makes it possible for business owners to retain ownership over their business assets. In business, liquidation translates to shutting down of business operations. It is also much more confidential than liquidation.
A trustee is normally appointed by the court when a bankruptcy petition is received. The work of the trustee is to carry out due diligence and ensure the law is followed to the letter throughout the bankruptcy process. The trustee also acts as the intermediary between creditors and the debtor.
It is important to note that there are many types of debts that cannot be written off through bankruptcy. Taxes, penalties and interest on unpaid taxes are not subject to bankruptcy proceedings, so you still have to pay off your taxes when you are declared bankrupt. Only death can absolve you from paying taxes.
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.
While the default type of bankruptcy calls for liquidation of assets owned by the firm to offset their debts, this option provides for reorganization of debts. The debtor is declared bankrupt, and gets all bankruptcy protections. In return, they agree to make monthly payments to the trustee, who distributes the payments to all the creditors. This goes on throughout the bankruptcy period, after which all unpaid debts are written off.
The main advantage of this chapter is that it makes it possible for business owners to retain ownership over their business assets. In business, liquidation translates to shutting down of business operations. It is also much more confidential than liquidation.
A trustee is normally appointed by the court when a bankruptcy petition is received. The work of the trustee is to carry out due diligence and ensure the law is followed to the letter throughout the bankruptcy process. The trustee also acts as the intermediary between creditors and the debtor.
It is important to note that there are many types of debts that cannot be written off through bankruptcy. Taxes, penalties and interest on unpaid taxes are not subject to bankruptcy proceedings, so you still have to pay off your taxes when you are declared bankrupt. Only death can absolve you from paying taxes.
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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