If your business has fallen on hard times and the bills are adding up with no relief in sight, you may be considering a bankruptcy. Before taking this drastic step, it's imperative that you seek bankruptcy information so you can make the right solution for your business and yourself.
Before seriously considering bankruptcy consult with a lawyer and accountant that specializes in bankruptcy cases. They can provide you with bankruptcy information so you can make an educated decision.
Chapter 7 bankruptcy is the most popular choice as it is quick and doesn’t require a repayment plan. You will also get to keep exempt property. Non-exempt property will be sold with proceeds going to creditors. After the bankruptcy, all debts (credit cards, medical bills, and loans) are dismissed. In order to qualify for Chapter 7, you must meet the following criteria:
· You must make less than your states median income for your family size.
· After living expenses are deducted, do you have excess money each month?
· Are you current with car and house payments?
· Are you comfortable losing your home and do you have other living alternatives?
If you have monthly disposable income, you will not qualify for Chapter 7 bankruptcy and will need to file for Chapter 13—which requires you to pay back creditors on a three to five year repayment plan.
Here is the criteria for Chapter 13 bankruptcy:
· Do you make too much money for Chapter 7?
· Do you want to keep your non-exempt property?
· Do you have nondischargeable debts?
· Have you filed a Chapter 7 bankruptcy in the past eight years or less?
Declaring bankruptcy should not be taken lightly as that decision can impact your business, your credit, and your life for many years. The experts at Litzler, Segner, Shaw & McKenney, LLP (LSS&M) will make sure you have all the facts and share valuable bankruptcy information with you before making that decision.
If you live in the Dallas, Texas area, you can easily schedule an appointment with Litzler, Segner, Shaw & McKenney. They are expert asset managers and will help guide you with information not only on potential bankruptcies, but can provide you with a wide range of financial services. For more information, visit us today.