Posted on August 07, 2021 in Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a form of liquidation bankruptcy that may help you get out of debt and back into a more financially secure position in your life. Chapter 7 bankruptcy is great for dealing with issues such as judgments, lawsuits, co-signer debt liability, medical bills and credit card debt.

When you choose this kind of bankruptcy, you may be asked to liquidate some of your assets, but for the majority of people, there are exemptions that help them protect much of what they’ve earned for themselves over the years. With the right help, it may be possible to go through bankruptcy without liquidating anything at all.

What happens when you file for Chapter 7 bankruptcy?

When you file for Chapter 7 bankruptcy, the first thing that happens is that an automatic stay goes into place. An automatic stay makes it so that creditors may no longer seek out payments during the bankruptcy. They are also forced to stop collections activities, so that you don’t have to continue receiving harassing phone calls or letters.

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 Posted on June 10, 2021 in Bankruptcy

A variety of circumstances may lead to someone being encumbered in debt, such as an unexpected medical procedure or job loss. You may find it relatively easy to tackle a few of your smaller bills but struggle to pay off the other, larger ones.

Your creditors will generally try to reach you by phone and mail with notices. They may eventually seek out the assistance of a debt collection agency to attempt to collect your debt if in-house efforts fail. Your creditor may turn to a collections attorney as a last resort. Your creditor’s attorney may then file a lawsuit against you. If they’re successful in doing so or you fail to respond, then the court may enter a judgment in your case.

A judgment may give your creditor an option for garnishing your wages, repossessing your assets, placing a lien on property or tapping into your bank account. You may wonder what rights you have aside from filing bankruptcy.

What should you do if a creditor secures a judgment against you?

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 Posted on April 12, 2021 in Bankruptcy

Running a restaurant has its good times and bad. In the last year or so, the economy has been struggling. For many restaurant owners, this has meant an immense amount of financial pressure.

As a small business owner, you may be interested in finding out more about what you can do to get out of debt and if bankruptcy could be beneficial to you as you wait for the economy to recover. The good news is that there may be options to help.

To start with, there are two main kinds of bankruptcy that small business owners use. These are Chapter 7 bankruptcy and Chapter 11 bankruptcy. Chapter 7 is liquidation-based, meaning that the business will close its doors. Chapter 11 is a type of reorganization bankruptcy, which allows businesses the time needed to restructure and find a way to become profitable despite a heavy debt load or low profits.

Which kind of bankruptcy is right for your business?

The type of bankruptcy you want for your business will vary based on your goals. Do you want to stay open or are you willing to shut your doors? If you want to close your restaurant and walk away, then Chapter 7 bankruptcy may be a good option. It gives you the opportunity to liquidate your business assets and to have the remaining debts discharged.

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