Saving the company

Deal with your debt as soon as possible do not ignore it because the consiquinces can be severe, any late payments found on your credit report can effect you when you apply for any plastic or any type of loan. Bankers and lenders will review your credit history before offering you any credit. There are steps you can take to reduce your pending debt.

Avoid skipping a payment
Shop around for the best interest rate
Use a home equity loan to pay off your debt
Use your tax refund to pay off any debt
Propose a deal with your creditors

Bankruptcy

A legal way to declare that you or your business is unable to repay any of your creditor’s money that you owe them is to file bankruptcy. Creditors could possibly file a bankruptcy petition against the one declaring bankruptcy to recover a portion to the amount owed or they might try to get you to restructure to regain some of the money. The bankruptcy is started by the one owing the money (the debtor) it is referred to as a “voluntary bankruptcy” action.

There are many legal rules for filing bankruptcy that vary from country to country. Here we will look at only one and that will be the United States.

To declare bankruptcy in the US, it is stated in the US Constitution that the matter falls under Federal jurisdiction which allows the Congress to make the bankruptcy laws consistent or “uniform” throughout all of the 50 states.

Statute law governing bankruptcy was enacted by the Congress in the form of the Bankruptcy Code located at Title 11 of the United States Code. In some cases is amplified by an individual state law where the Federal law doesn’t expressly agree with the state law.

The United States Bankruptcy Court is where the cases are filed. (An adjunct to the US District Court, bankruptcy cases are often dependent on the State law. State law then is a major role in a lot of the bankruptcy cases and then causes a generalization of the bankruptcy law across state lines.
Under the Bankruptcy Code, located at Title 11 of the United States Code there are 6 types of bankruptcy. They are called “Chapters”.

Is Bankruptcy the answer - Contact us to Determine if this is for you

A chapter 7 deals with the basic liquidation for individuals and businesses; chapter 9 deals with municipal bankruptcy; chapter 11 deals with the rehabilitation or reorganization, used primarily by business debtors, but sometimes by individuals with substantial debts and assets; chapter 12 addresses rehabilitation for family farmers and fishermen; while chapter 13 is for rehabilitation with a payment plan for individuals with a regular source of income; lastly chapter 15 deals with ancillary and other international cases.

Chapters 7 and 13 are the most common types of personal bankruptcy used.
It is important to note that this bankruptcy law chance from time to time so it is extremely advisable to hire the services of a competition attorney to constant monitor it for you. If you do this the stress will be reduced to a manageable level.