Tag Archives: DebtRelief

Which Bankruptcy Options are Available to Small Businesses?

Is your small business struggling to pay back its debt obligations? Have creditors filed lawsuits against you for defaulting on business debts? If you answered yes to these questions, then you should consider filing for bankruptcy. When consumers or businesses file for bankruptcy, an automatic stay is issued that temporarily halts most collection attempts. Depending on the circumstances, your business has bankruptcy options that may include: Chapter 11 bankruptcy: During a Chapter 11 bankruptcy, your debts are reorganized and paid through a repayment plan that can for up to ten years. After your business files Chapter 11 bankruptcy, you still retain control of over most business decisions. Chapter 11 is a good choice if your finances are complex and if you want to stay in business. Chapter 7 bankruptcy: If you want to close shop and pay off your creditors, then Chapter 7 bankruptcy might be the right choice for…
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Can I Convert My Chapter 13 Bankruptcy to a Chapter 7 Bankruptcy?

In a Chapter 13 bankruptcy, creditors are paid back through a payment plan that lasts for three to five years. During this time, you must make timely payments to the Trustee, who then distributes the funds to your creditors. Once you complete the repayment plan, you may keep your secured debts such as a home or vehicle. However, there are instances where you may want to convert your Chapter 13 bankruptcy to a Chapter 7 bankruptcy. This typically happens when debtors can no longer afford Chapter 13 payments or if they wish to surrender property. For example, you could experience job loss or severe illness during your three to five-year repayment period. You may also decide that you no longer want to keep your home or vehicle. In other cases, the court may force you into a Chapter 7 bankruptcy because you missed payments for your Chapter 13 repayment plan….
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What Happens to My Retirement in Bankruptcy?

Retirement plans are one of the few assets that are mostly or completely exempt from the bankruptcy estate. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 protects most types of retirement accounts. If you have a 401k, 457(b), 403(b) or any other ERISA-qualified plan, then your retirement funds are exempt. Government retirement plans and pensions may also be completely protected during bankruptcy. During a Chapter 7 bankruptcy, retirement funds are not used to pay off your creditors. In a Chapter 13 bankruptcy, your retirement funds are not part of the three to five-year repayment plan. These funds do not factor into how much you pay back creditors during your Chapter 13 bankruptcy. However, there are exceptions. With traditional and Roth IRAs, only a portion of the retirement funds are excluded from the bankruptcy estate. As of 2016, this amount is $1,283,025. The amount exempt from bankruptcy changes every…
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