Tag Archives: chapter7

Small Business Guide: Options When Filing for Bankruptcy

Bankruptcy can be a useful option for taking care of unmanageable debt for companies big and small alike. However, the types of bankruptcy that are best differ for each. Even within the domain of small businesses, the type of bankruptcy that’s best depends on the business’ circumstances. Here are the options a small business has when filing for bankruptcy. Best Options When Filing for Bankruptcy as a Small Business Chapter 7 – The only type of small business that receives a discharge of debts under Chapter 7 is a sole proprietorship. Additionally, you are still responsible for any company obligations you were liable for. With this being the case, Chapter 7 bankruptcy is best only if you are not personally liable for company debts and if you are planning to shut down. Chapter 11 – While it’s normally used for big corporations, Chapter 11 bankruptcy can successfully be used by…
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What Effect Will Small Business Bankruptcy Have on My Credit?

If you’re a small business owner struggling with debt, filing for Chapter 7 Bankruptcy can help you to get back on your feet. Whether you will be held personally liable for your business debts depends on the structure of your business. Continue reading to learn about the specific factors in small business bankruptcy that can leave you personally accountable for debts. Determining Personal Liability in Small Business Bankruptcy What type of business entity is the business? – Whether you formed a specific business entity and the type of this entity largely determines the responsibility for business debts. Sole proprietorship – If you didn’t form an entity and are a sole proprietor, you may be responsible for all business debts. You and the business are one and the same, under law. As a result, filing for business bankruptcy equates to filing for personal bankruptcy. Limited partnership, Corp, or LLC – In…
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Three Alternatives to Filing for Bankruptcy (Which May, or May Not, Be Beneficial)

When you can’t pay off your debt, bankruptcy is generally going to be your best option. Chapter 7 bankruptcy, for example, dissolves most, if not all, of your debt and gives you a clean slate. In some situations, however, bankruptcy is not the best option. In these cases, there are alternatives to filing for bankruptcy. It’s important to be wary of the fact that you will be taxed on the debt which the creditors forgive, so you will still have to pay a percentage of the forgiven debt when taxes are due. Bankruptcy, in contrast, does not implicate taxes—so just another consideration when determining what is right for you. Alternatives to Filing for Bankruptcy Debt Settlement– Many credit card companies and other lenders will allow you to settle your outstanding debt at a reduced amount, if you can pay the amount in full or sign a repayment plan. Having an…
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5 Most Common Causes of Family Money Problems

Many families in the US are struggling financially right now. The current economic situation in our country is that the rent keeps going up, but our incomes are barely changing. It’s left thousands of people, maybe millions, in very difficult positions. Most of these people are put in these awful positions by the same things. 5 Most Common Causes of Family Money Problems Medical Expenses – For families with little or no health insurance, a serious injury or illness is enough to cause a financial disaster. Medical emergencies tend to happen at the absolute worst times. They are ridiculously expensive, and the most common reasons people give for contemplating bankruptcy. Credit Card Debt – Credit cards may seem like a lifesaver when you’re short on actual money, but in truth, they only make things worse. The only people who can safely use a credit card are the people who have…
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What Are the Pros and Cons of Filing Chapter 7 Bankruptcy?

Bankruptcy has a lot of negative stigma around it. That’s mostly due to the old saying “people are scared of what they don’t understand.” Nobody really knows much about the pros and cons of filing Chapter 7 bankruptcy, so we want to clarify some things. Pros and Cons of Filing Chapter 7 Bankruptcy Bankruptcy can offer a variety of benefits. If you file Chapter 7 bankruptcy, you can: Immediately stop any repossession actions Save your home from being foreclosed on Repay some of your debts Stop all collector harassment, such as mail and phone calls Completely discharge most or even sometimes all of your debt Get a fresh start Along with the benefits, there are a few things which could be viewed as negatives, including: Chapter 7 bankruptcy will show up on your credit report for 10 years You may have to surrender some assets (although most who file Chapter…
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