Consumers can now download free bankruptcy software and save thousands on filing Chapter 7, 11, and 13, all without an attorney.
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types of bk - Bankruptcy Rules
Bankruptcy rules have changed dramatically over the last couple of years.
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A business bankrutpcy lawyer can work with you to help you sort through your business debts, assets and overall health and future to determine whether or not Chapter 11 bankruptcy is right for you and your business. Ultimately, it is a matter of the numbers, and what you, and any partners and other business interests can do to either save the company or liquidate. Need a Business Lawyer?
The bankruptcy decision in itself is a federal court process that has been designed to assist consumers and businesses alike to eliminate debt or repay financial obligations under the protection of the Bankruptcy courts. These fall into two categories, “re-organizations” and “liquidations”.
A Chapter 11 bankruptcy filed in accordance with the US Bankruptcy Code is often referred to in one word as being a “reorganization” bankruptcy. Federal Bankruptcy laws govern how a company goes out of business and go about recovering from overwhelming debt to become profitable again. This is generally accomplished by use of a management plan that is under the executorship of the bankruptcy courts.
When a business files for protection under chapter 11 bankruptcy, it is required to re-organize. In this case the businesses management will continue to pursue day-to-day operations, although the bankruptcy courts are required approve all major business decisions. Chapter 11 is the only section of the bankruptcy code that allows business operations to continue, and if and when the business manages to re-organize they may be allowed to exchange old stocks and bonds for new ones in the company, even though the new stock may be worth less than the original stocks and bonds in the business. Whatever happens, it is up to the Bankruptcy court to determine if stockholders receive anything or whether the debtor is insolvent or not.
If a business decides to file under chapter 7 of the Bankruptcy code, it will need to stop all operations and go out of business. The Bankruptcy court then appoints trustees to completely liquidate all assets of the company and pay off all financial obligations and debt. These debts include debtors, creditors and investors. Typically, stockholders may recoup a fraction of their investment, but the stocks of a chapter 7 business are usually worthless.
By contrast, chapter 7 or the “liquidation” type of bankruptcy, any property that is not exempt under your particular state laws is able to be sold or “liquidated” to pay back part of the debt owing. It is often referred to separately as “consumer, chapter 7″ and “business chapter 7″ bankruptcy and typically lasts three to six months.
In Chapter 7 bankruptcy, some property may be sold to reduce the debt, however almost all unsecured debt will be erased from the debt profile, and you may be allowed to keep classified properties such as clothing, cars and furnishings. Secured debt is different story however; say for example your car has been pledged as collateral for a debt, you have the choice of allowing the creditor to repossess the car or paying a lump sum to the creditor that is equal to the current replacement value. Some kinds of secured debt may be eliminated.
Chapter 13 is the most common of all methods of re-organization bankruptcy for most consumers and means that they are able to retain their property, but repayments must be made and met to ensure that over a three to five year period all debts will be repaid.
All forms and chapters of bankruptcy have a wide variety rules and regulations and exceptions to those rules and regulations. In essence it is a very complicated process. These laws dictate what property you can and cannot keep and what kinds of debts are covered. Ask A Lawyer Online Now. Get an Answer ASAP. 12 Lawyers Are Online! Law.JustAnswer.com
By: Jay Anderson
Article Directory: http://www.articledashboard.com
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Business Bankruptcy Lawyer presents the following information on liquidation. If you have more questions about whether or not liquidation may be right for you, your business and your current financial situation, contact a business bankruptcy lawyer in your area. We also have resources on our site that can help you find a lawyer, answer questions about debt consolidation and even apply for government grants for small businesses.
When we start a new business we have many hopes and dreams. We try our level best and do everything possible to make our business a great success. However, not all of us are greeted with success so easily. Some of us struggle initially but manage to settle, while others take off. At a certain point however some unexpected event or a careless decision will change the situation and turn the business upside down. We may be forced to make that painful decision of liquidation.
All of us try to avoid liquidation. It is not just about profit and loss of a business - we somehow identify our business with our own self esteem. So, it hurts our ego very badly when we are forced into liquidation. However, at times liquidation would be the wisest business decision that can prevent us from further loss and liability.
Liquidation is a process of winding up or bringing a company or a business to an end. In some cases it can be partial liquidation so as to protect oneself from liability. Partial liquidation will allow you to run the remaining part of the company after liquidation. Through liquidation the properties and assets that are in the name of the company will be redistributed. Depending on the situation, liquidation can be either forced liquidation or voluntary liquidation.
Other terms used for liquidation are insolvent liquidations and solvent liquidations. Insolvent liquidations are also referred to as creditors voluntary liquidations and solvent liquidations are referred to as members voluntary liquidations. When the decision for liquidation is made, after the review of your company’s balance sheet, if you find that the liabilities of your company are more than the assets owned by the company then you must go for insolvent liquidation. There are certain companies that do not wait for insolvent liquidation or creditors voluntary liquidation. They would rather go for members voluntary liquidation and settle all their debts. Whether it is members voluntary liquidations or creditors voluntary liquidations you will need a third party liquidator who is licensed as an insolvency practitioner to carry out the process - this is where Lines Henry can help.
To ensure that liquidation is carried out perfectly you must find an experienced insolvency practitioner as you cannot afford to make more mistakes at this stage. The liquidator that you hire should be capable of getting the best prices for all your assets. To get through the liquidation process successfully, your liquidator should submit a report to the Department of Trade and Industry on all company directors who have been in their respective positions within 3 years prior to the date of liquidation. Your liquidation process can be totally ruined in the hands of an inexperienced liquidator.
Lines Henry is one of the most reputed insolvency practitioners in the UK; a name that vouches for reliability and experience in both personal insolvency and corporate insolvency procedures. They are known for their highly professional approach and their attention to detail whilt acting as liquidators. They also deal with business debt, personal debt, business bankruptcy and much more. Visit Lineshenry.co.uk to know more about their services and vast expertise.
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Business Bankruptcy Lawyers and information on business bankruptcy liquidation.
Thousands of corporations file for business bankruptcy liquidation each month.
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More questions about business bankruptcy liquidation? Read on….
Contract attorney bankruptcy review work
Contract attorney bankruptcy review work dries up a bit as liquidation increases.
Filing For Business Bankruptcy
All consumers should be aware of the abundance of information regarding filing for chapter 13 bankruptcy.
Personal vs. Corporate Bankruptcy
Similar to an LLC, when corporations liquidate under chapter 7 of the US bankruptcy law, it includes only the business assets.
Sell Computers Buyers Business Liquidators Liquidation
Business surplus liquidation services: Closing office corporate computer resale, bankruptcy/downsizing, auctions and remarketing of used PC computer surplus.
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Business Bankruptcy Lawyers presents the following article on Chapter 11 bankruptcy protection. With this struggling economy, more and more businesses, small and large alike, may need to file for Chapter 11 bankruptcy. Contact a bankruptcy attorney in your area for more information or possible legal representation.
In a sagging economy, filing Chapter 11 bankruptcy protection may loom large on the horizon for many of the nation’s failing enterprises.
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Business Bankruptcy Lawyers presents the following information on Chapter 13 bankruptcy. Do you still have more questions? Contact a business bankruptcy lawyer in your area for more answers or possible legal representation.
Chapter 13 bankruptcy laws have been changed to require more tests, which make qualification for filing more difficult than it was before.
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Read on for more information on Chapter 13 from the blogosphere:
Chapter 13 Bankruptcy to Reclassify Mortgages as Unsecured Debts
One of the greatest of these benefits is that, with a Chapter 13 (reorganization) bankruptcy, the courts are…
Chapter 13 could be your lucky number
Today President Obama announced his homeowner bailout plan.
Chapter 13 Bankruptcy Plan Payment: How it Works
When you file for chapter 13 bankruptcy protection you are required to repay your outstanding debt, usually within a three to five year period, and allowed to keep your property.
Budgeting is Critical in a Chapter 13 Bankruptcy Case
As part of your chapter 13 bankruptcy case preparation, you are required to go through financial counseling.
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Business Bankruptcy Lawyers presents the following article about Chapter 11 bankruptcy. If you have more questions, contact a business bankrupty lawyer in your area for answers, and potential legal representation.
When a commercial entity is suffering from debilitating debt, but believes there is a way to recover and become profitable again, a Chapter 11 bankruptcy may be an option for consideration.
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Business Bankruptcy Lawyer and Bankruptcy Resources offers the following article on how to keep your business out of bankruptcy. If you are beyond this advice, contact a business bankruptcy lawyer immediately to find out what your options are and if you need legal representation.
It is very easy to drive your business towards bankruptcy and debt and a very, very hard to get out of it. Debt consolidation is the most convenient way to ensure your business with a cash flow when you need it.
Maybe you are the owner of the business that has borrowed big amounts from lenders but have the trouble paying them back the money you owe them. Such things happen for a lot of reasons, some could be controlled by you while others are out of your control. For example you could have invested in an unprofitable enterprise or your company could have experienced a growth so fast that it has outgrown its operating capital.
Whatever the cause of your financial problems may be, there are debt consolidation companies that can help a business like yours to run financial assets more efficiently. Another plus of hiring these companies is that they are actually cheaper then hiring your own CPA. What debt consolidation will do for your company is reorganization of your debt in order to enable a more efficient cash flow for your company.
Debt consolidation of your business debts will make it possible to merge your debts and loans in one low interest payment instead of many payments with high interest. Debt management company is going to use that lump sum and will actually act as a manager of your company debts.
Debt management companies are much better way to solve your financial problems then filing for Chapter 11 bankruptcy as it is traditionally done. What filing for bankruptcy under Chapter 11 will do is that it will cause a huge delay together with high cost expenditures.
Before any step is taken towards the debt consolidation you will need to hire a professional and go through the debt consultation. Another waist of time is waiting for a plan approval by the Trustee. That alone can take months or even years. And in most cases a company doesn’t have that much time to lose.
In many points business debt consolidation is very similar to a student loan consolidation. In case of student loans, as graduate you are in position to hire a debt consolidation expert to help her/him with combining all of the many student loans in just one with significantly lower interests.
A graduate will then pay off hers/his debt much easier on monthly basis through much longer period of time. Looking at it from a long term perspective it will enable student to save significant amount of money that can be used elsewhere or for investing. The same principle can be applied for business debt consolidation.
What you should avoid is getting deeper in debt by applying for more loans, you can always find a lender wiling to loan you the money, but with a very high interest rates. You can think about borrowing the money if you know for certain that your profits will rise for a long period of time and that is very unlikely.
Another way to get financial help is to go through credit union. Credit unions are a good solution because they will work with you to prevent business bankruptcy and pay back your debts and not against you as loans sometimes can.
By: Nikola Govorko
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Slam the Door on Debt
by: ARA Content
Business Bankruptcy Lawyer presents some great thoughts on getting out of debt before it becomes an issue for you AND your business. There are alternatives to bankruptcy, a sound bankruptcy lawyer will discuss all of your options with you.
(ARA) - According to American Consumer Credit Counseling, Inc., the average balance on a credit card is $7,000, offering an average interest rate of 18.9 percent.
Additional statistics show that the average household has 10 credit cards and, not surprisingly, over half of those households report having trouble paying their minimum monthly payments.
Common indicators of a debt problem include not knowing the state of your personal finances; not knowing how much you owe or what interest rate you are paying; missing payments; having poor savings habits; using one credit card to pay another, or living paycheck-to-paycheck.
For many Americans, the statistics and debt problem indicators hit even closer to home with the conclusion of the holiday shopping season and the onset of the ever-dreaded tax season. Facing debts is one of the major barriers for people in dealing with their personal finances.
One organization that understands the problems associated with debt management is IHateFinancialPlanning.com (www.IHateFinancialPlanning.com), a Web site intended for the 3 out of 4 Americans who hate financial planning. The site offers helpful tips for eliminating debt and staying out of debt in the future.
"Millions of Americans love the instant gratification of using their credit card and hate thinking about the serious consequences of accumulating debt," says Randy Schuldt, a vice president with IHateFinancialPlanning.com. "Debt can paralyze people from moving forward. But, with a solid plan and the right tools, paying off their credit cards and eliminating their debts can be tolerable and even enjoyable."
Numerous options are available for those who are struggling to shut the door on debt. Declaring bankruptcy is not necessarily the best option. Sites such as IHateFinancialPlanning.com provide advice, tools and resources for those needing assistance. Visitors to the site also have the option of e-mailing their questions and receiving a free answer from a professional with no strings or sales pitches attached.
To help you get started on the road to less debt and greater gratification, IHateFinancialPlanning.com offers the following tips:
Put Yourself First
That’s right! It sounds a bit surprising, but according to Debtors Anonymous (www.debtorsanonymous.org), it’s critical to take care of yourself while eliminating debt. No, this doesn’t mean that you can go on a spending spree if you are feeling depressed. Instead, get plenty of rest and eat well to keep energized while focusing on your goal of being debt free.
Keep a Record and Prioritize
Keep track of every nickel you spend for a month and record amounts spent in appropriate categories - i.e. housing, transportation, food, clothes, entertainment, etc. It doesn’t have to be a fancy software program - just a pencil and a pad of paper will suffice. At the end of the month, analyze where your money is going. Decide if the items purchased are necessities or niceties. Be realistic. What spending can you eliminate or reduce in order to reach your goal of being debt free? Perhaps you can pack your lunch rather than eat out every day, rent a movie rather than see the latest release, or scale down on your clothing budget. Do you really need another tie or an additional pair of black shoes?
List Your Debts
Create a list of your debts - the amount you owe and the interest rate. Make the minimum payment each month - but more importantly, make a commitment to pay off the debt with the highest interest rate first by making an extra payment. After you’ve paid off that debt, apply the amount you were paying on the old debt to your next debt with the next highest interest rate. Don’t reduce the total debt payment amount just because one debt is paid off.
Create a Spending Plan
Once you have made a record of how you spend your money and have concluded which expenses are necessary, then you are ready to create a spending plan. Start by projecting how much money you will spend in each category for the month. Change the amount if your situation changes. Didn’t expect to break your arm and dent your vehicle’s bumper in the same month? Make adjustments and move forward. Create a new plan for each month. This is the best tool to stay in control of your spending. Remember that some of these tips are appropriate for your lifestyle, some of them are not. Personalize your plan and keep focused.
Cut Up and Cancel
Get rid of those credit cards! Cut them up and cancel them. Be aware that when you try to cancel your credit card, the company may offer you an extended line of credit or a lower interest rate. Do not be tempted! It’s not your glowing personality that entices them to do business with you. If you can handle having one, keep a credit card for emergency purposes (which doesn’t include a last-minute trip to the Bahamas to beat the winter blahs). Pay off that one credit card each and every month - or else be back in the same shipwrecked boat of debt. Minimum monthly payments are not acceptable.
Debit Not Credit
Love the feel of plastic sliding through your fingers while making a purchase? Worried you will have withdrawal? Use a debit card that immediately withdraws money from your checking account. Experience the feeling of gratification knowing you’ve paid for the item you just picked out.
Income-producing Investments
Use credit to purchase items that give you some income-producing potential. There is such a thing as good debt - a mortgage for a home, a loan for an education or the start of a new business. Sorry, payments on an expensive new SUV don’t count unless you make a living as a chauffeur.
Credit is Not Income
If you apply for one of the seven credit card applications that arrive annually in an average American’s mail, and receive a $5000 line of credit, don’t consider it a raise. It’s not your money and you haven’t earned it. You have simply been given the opportunity to accumulate debt at the lender’s benefit. Americans paid out approximately $65 billion in interest last year alone. With the exception of your mortgage, credit payments should never exceed 10 percent of your income.
Shop Around and Be Smart
Take a look at other interest rates. Be smart. Don’t finance your car with a credit card if you can get a car loan at a lower interest rate. If your current interest rate on your credit card is 15 percent and another company is offering you 8 percent, contact your credit card company and see if they will meet the competitor’s rate. If not, take advantage of offers to transfer your higher interest rate cards to lower interest rate cards. It’s worth the time to shop around while you are lowering your debt.
Save, Save and Then Save Some More
Start saving today. If your credit card payment of $500 per month was eliminated and you were able to invest that amount in a savings vehicle earning a 10 percent return, you would save over $1 million in 30 years. That’s real money in your piggy bank.
Leave the Piggy Bank Alone
If you have already started a 401K plan or have a savings account, resist the temptation of using your investments to pay off your debt. Take advantage of the good side of interest - the compounding side - and keep your investments on track. Think long-term, not short-term, while paying off your debts.
About The Author
Courtesy ARA Content, www.ARAcontent.com; e-mail: info@ARAcontent.com
EDITOR’S NOTE: For more information contact Maclaren Latta, Carmichael Lynch Spong, (612) 375-8570, mlatta@clynch.com or Stephen Dupont, Carmichael Lynch Spong, (612) 375-8525, sdupont@clynch.com.
Securities available through PrimeVest Financial Services, Inc., Member NASD/SIPC. Call (320) 656-4300, ext. 64691, for a prospectus, which contains complete information on expenses and charges. Read it carefully before you send money or invest. IHateFinancialPlanning.com is part of the ING Group, a worldwide leader in the fields of insurance, banking and asset management, with more than 100,000 employees in 65 countries.
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