Understanding how bankruptcy will affect your employees is crucial as you consider filing. Employees are entitled to certain protections and compensation that will affect the overall value and cost-cutting of either Chapter 7 or Chapter 11.
Subchapter V is an evolving portion of the bankruptcy code that helps expedite the process for small business. With the CARES Act coming up for renewal in March, it’s important to know how this code could come into play for certain-sized companies looking at a Chapter 11 filing.
Chapter 13 Bankruptcy can be a viable solution for those looking to restructure personal debt while keeping their home, automobile or other important property. However, it’s important to consider the broader ramifications before filing the petition. Speaking with a qualified bankruptcy attorney can help you make the right decision.
Student loan balances are a growing problem and forcing many to turn to personal bankruptcy as an option. However, it’s important to understand that in most cases, student loan balances will not be forgiven in bankruptcy.
Chapter 13 bankruptcy is often a route for those who find themselves buried under credit card debt. Since credit cards are often a low priority on the repayment schedule, much of this debt can be discharged. However, if credit card debt is your primary debt, it may require partial repayment.
Rebuilding credit after a Chapter 13 bankruptcy isn’t impossible, but it is difficult. You’re going to want to understand all of the tenets that go into a credit rebuild before formalizing your own filing. A qualified bankruptcy attorney can help.
There are ways to keep your home through a bankruptcy, but they need to be done within the guidance of a qualified bankruptcy attorney. There are routes for home protection through Chapter 7 or Chapter 13, but both need to be done with great care.
Chapter 7 bankruptcy can affect small businesses in radically different ways. Especially if the owner has a personal guarantee in the company’s debt, then the filing could trigger the pursuit of said person’s personal assets.
Although Chapter 11 bankruptcy offers significant protections for struggling businesses, the resulting reorganization may not be worth the time, effort and money involved. It’s important to understand what actually happens through the filing to make sure it’s right for you and your business.
After filing for personal bankruptcy, you’ll be granted the protection of the automatic stay. From there, the court will assign your case a trustee and that person will organize a Meeting of Creditors to alert them of your filing.