Tag Archives: chapter7

Can I File Small Business Bankruptcy to Protect My Personal Assets?

When a business is struggling, sometimes the best solution is to file bankruptcy. For many small business owners, Chapter 7 bankruptcy gives them an opportunity to walk away without taking on any personal liability. Chapter 7 Bankruptcy for Small Business Chapter 7 is often the best option for small business owners who are unable to restructure their debts and continue operating. When you file Chapter 7 bankruptcy, a bankruptcy trustee will be assigned to you, and any nonexempt property and assets will be sold. Creditors will be paid by the trustee with the proceeds from selling assets. Limited liability companies, corporations, and partnerships are all eligible to file Chapter 7 bankruptcy. Individual owners who run their business as a sole proprietorship may also be eligible depending on their income. Do I Need a Bankruptcy Attorney? Without the help of a qualified attorney, the dissolution of your business could be handled…
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The Truth About Bankruptcy in America

Unfortunately, bankruptcy in America has a negative stigma, and is therefore rarely discussed. Because of this, people often believe things about bankruptcy and debt that just aren’t true. We hope to illuminate the subject with a little game of true or false. True or False: Bankruptcy in America Creditors will never stop trying to get money from you, even if you file for bankruptcy. This is false. Once you’ve filed for bankruptcy, you will receive an automatic stay which legally makes creditors stop harassing you. Also, once your debts have been discharged by bankruptcy, you no longer owe the debt, and creditors are unable to take any action against you. You have to give up your car, home, and other assets when you file for bankruptcy. This is false. Most people who file for bankruptcy have very little in the way of assets and property, but what they do have…
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Can I Still File Chapter 7 Bankruptcy If I Have No Assets?

Chapter 7 bankruptcy helps countless people offload some, or all, of their crippling debt so that they can have a fresh start. During the three or four-month process, a bankruptcy trustee will help you to pay back what you can by selling some of your assets. This is where a lot of people often take pause and ask, “can I even file Chapter 7 bankruptcy if I have no assets?” Yes! In fact, most people who file for Chapter 7 bankruptcy don’t have many assets, if any at all. What Happens in Chapter 7 Bankruptcy? Normally, when you file Chapter 7 bankruptcy, your property would become part of your bankruptcy estate. Afterwards, you can use various exemptions to protect your assets from being sold off by the bankruptcy trustee, who would then use the proceeds to repay your creditors. What Happens in a Chapter 7 No-Asset Bankruptcy Case? In most…
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How Can Creditors Collect Debts from Me?

When you owe money to a creditor, they will try just about anything to get that money off of you. You could very easily compare creditor’s collection actions to trying to get water from a stone, but they will never stop harassing you until one of two things happens; you pay the debt or you receive a bankruptcy discharge. How Do Creditors Collect Debts? If you are unable to pay your debts, creditors will stoop to the lowest levels in order to collect from you. Even if it means putting you in a terrible position, and leaving you without means to live a reasonable life, creditors will use a variety of collection tactics, including: Wage garnishment Repossession Foreclosure Harassment Tax refund Intercepts To collect on some debts, creditors may be able to start garnishing your wages. Creditors can take up to 25 percent of your income, or 30 times the…
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Why Should I NOT File for Chapter 7 Bankruptcy?

Before you make the decision to file for Chapter 7 bankruptcy, you should decide whether or not it really is the best solution for you. There are three important questions you should ask yourself to determine whether Chapter 7 bankruptcy is the best option. How much of your debt will be discharged in Chapter 7 bankruptcy? Can your creditors obtain a judgment against you and take income or assets? Will you have to give up some of your assets to pay off debts? Discharging Debt in Chapter 7 Bankruptcy If most of your debt is unsecured, such as credit card debt or medical bills, then you may benefit from a bankruptcy discharge. However, Chapter 7 bankruptcy cannot discharge all debts. If the majority of your debt is nondischargeable, then bankruptcy may not be for you. Some nondischargeable debts include: Unpaid child support Income taxes due in the last three years…
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