The close of 2012, and with it, the close of the fourth quarter for all businesses is just around the corner. What else does that mean? It’s time to start planning your budgets for 2013. For some businesses, however, 2013 could mean it’s time to consider a fresh start, and filing for bankruptcy could be your only way to get that fresh start.
Many people view bankruptcy as a last resort of sorts and are wary of even considering using bankruptcy as a too Fort Worth Bankruptcy Attorney l to help them individually, or as a business, to regain solid footing, get out from under a mountain of debt, and start with a clean slate. When it comes to filing bankruptcy, there are generally two types of categories, liquidation or reorganization, or Chapter 7 and Chapter 13 bankruptcy.
When deciding if filing for bankruptcy is your best option, you’ll need to decide if you want to file for Chapter 7 or Chapter 13. Do research, talk to bankruptcy attorneys, and other bankruptcy and financial experts. Find out which course of action makes the most sense for you as an individual, or you as a business owner.
Chapter 7 bankruptcy is a form of liquidation bankruptcy, meaning, after the completion of forms, and submission of a petition to the court, and approval, an automatic stay is imposed on all your creditors. This prohibits your creditors from collecting any of your debts owed to them until they are contacted by the court. If repayment terms are agreed upon, the court will inform the creditors of these terms. Chapter 7 bankruptcy will remain on your credit report for up to 10 years.
Chapter 13 bankruptcy is a form of reorganization bankruptcy. In this case, a repayment plan describing how the debts will be repaid over the upcoming three-to-five years is drawn up. Also, a trustee is assigned to your file, to oversee the repayment process. In this case, creditors have the right to comment on the repayment plan. Once your filings and repayment plan are approved by the court, any debt not included in the repayment plan is discharged. Chapter 13 bankruptcy will remain on your credit report for seven years.
Deciding to file for bankruptcy is a difficult choice for any individual or business. Knowing that obtaining credit over the next several years is going to be difficult will often deter some from deciding that bankruptcy is the right course of action for them. Once you file for bankruptcy, you are able to begin to put your poor financial history in your rear view mirror and move forward, financially. It is true that you’re going to need to rebuild your credit rating and be more responsible with credit moving forward. But, that is what you get with a fresh start, a chance to start from scratch.
If you feel that filing for bankruptcy is the right course of action for you, a bankruptcy attorney can help you file the right forms quickly and correctly. Call 817-268-2468 to reach a Forth Worth Bankruptcy Attorney.