Monday, 11 March 2019

Guide To Filing A Chapter 11 Monterey

By Ruth Butler


There are many ways to resolve debt. The best option, however, is to file for bankruptcy when all else has failed. This is because there are several negative effects of bankruptcy that debtors would want to avoid. After deciding to file for bankruptcy, it is crucial you hire a competent lawyer to advise and guide you. Ideally, you should look for an attorney that has been handling Chapter 11 Monterey cases for many years.

There are many lawyers you can hire to help you with the bankruptcy filing. Since they cannot all be the same, however, you will need to compare them to identify the best attorney for your needs. The ideal lawyer should have a lot of experience in the industry as well as a great reputation. In addition to that, they must charge a competitive rate for their services. Be sure to take your time to compare rates to ensure you find the best attorney.

You can file for chapters 7, 11 or 13 bankruptcies depending on circumstances. If you are an individual debtor, chapters 7 and 13 are your only options. If you are a corporate or institutional debtor, chapter 7 and 11 are your only options. Your financial situation is what will dictate the chapter you use to get rid of all your bad debts.

When looking for bankruptcy protections under this option, the owner or management of the company or business needs to file the necessary paperwork and submit a plan on how they plan to repay their debts. The plan must be presented to the creditors and the court. If approved, the firm will have to make monthly payments over a period of several years to get debt forgiveness.

It is crucial to note that with this chapter, the trustee will only be required to accept regular monthly payments to settle the outstanding debts. No liquidation will be done. The monthly installments are usually based on the financial muscle of the debtor, and not what they owe. After a few years of making regular monthly payments, the outstanding debts will be forgiven.

With this option, debtors do not lose their assets to liquidation. What happens is that the trustee helps the firm to come up with a repayment plan for their debts. The plan must be presented to creditors, who will ask questions. After approval of the plan, the debtor will retain all assets and be required to make regular payments to the trustee every month to service their debts. After some time, all unpaid debts will be written off.

Ideally, bankruptcy should be considered after all other options have failed to yield any results. For starters, you should consider refinancing your debts. If this fails, you should consider consolidating your debts. If these two options, together with other debt resolution options fail, you should consider filing for bankruptcy to get bankruptcy protections.

After a firm has declared bankruptcy under this option, it will be almost impossible to purchase new equipment or sell existing equipment. This is because the trustee will have to approve major decisions, and their work is to ensure no asset is lost. As a result, growing or expanding the business will become a major challenge for the business.




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