Bankruptcy is a legal provision available to individual consumers, charities, businesses and any other legal entity that consumes debt. It is meant to resolve bad debts as well as give debtors a chance to get rid of their debts and start life afresh and free of debt. When looking to file a chapter 11 Oakland residents should always consult a bankruptcy attorney.
Chapter 11 is available to business and corporate debtors. Any legal entity that consumes debt can apply for legal protections under this option. However, the business must have a regular source of income, which is predictable and considerable. If not, liquidation may be recommended by the trustee.
Liquidation is the default type of bankruptcy. It calls for selling of all the assets owned by the business to pay off debts. The downside with this option is that it prevents the business from continuing with operations, so they may have to close shop. With debt restructuring, debts are restructured to allow for monthly payments throughout the bankruptcy period.
The main advantage of this chapter is that it makes it possible for business owners to retain ownership over their business assets. In business, liquidation translates to shutting down of business operations. It is also much more confidential than liquidation.
A trustee is normally appointed by the court when a bankruptcy petition is received. The work of the trustee is to carry out due diligence and ensure the law is followed to the letter throughout the bankruptcy process. The trustee also acts as the intermediary between creditors and the debtor.
It is important to note that there are many types of debts that cannot be written off through bankruptcy. Taxes, penalties and interest on unpaid taxes are not subject to bankruptcy proceedings, so you still have to pay off your taxes when you are declared bankrupt. Only death can absolve you from paying taxes.
The beauty of a chapter 11 is that it provides for debt restructuring. In fact, it is the debtor who is required to come up with a repayment plan to clear their business or corporate debts. The monthly payments are based on the average net income of the debtor, and not what they owe. This means that they can easily clear their debts without making drastic changes in their business.
It is important to note that bankruptcy is a serious legal process that nobody should opt for before considering the pros and cons. If you are running a successful business with a powerful brand, for instance, you should check all the cons to see if bankruptcy is for you. After all, your brand is too valuable to tarnish through a bankruptcy petition. Once your business is declared bankrupt, you may lose business, scare away potential investors and make suppliers uneasy when it comes to dealing with you. The upside is that you will be able to get rid of all your business debts.
Chapter 11 is available to business and corporate debtors. Any legal entity that consumes debt can apply for legal protections under this option. However, the business must have a regular source of income, which is predictable and considerable. If not, liquidation may be recommended by the trustee.
Liquidation is the default type of bankruptcy. It calls for selling of all the assets owned by the business to pay off debts. The downside with this option is that it prevents the business from continuing with operations, so they may have to close shop. With debt restructuring, debts are restructured to allow for monthly payments throughout the bankruptcy period.
The main advantage of this chapter is that it makes it possible for business owners to retain ownership over their business assets. In business, liquidation translates to shutting down of business operations. It is also much more confidential than liquidation.
A trustee is normally appointed by the court when a bankruptcy petition is received. The work of the trustee is to carry out due diligence and ensure the law is followed to the letter throughout the bankruptcy process. The trustee also acts as the intermediary between creditors and the debtor.
It is important to note that there are many types of debts that cannot be written off through bankruptcy. Taxes, penalties and interest on unpaid taxes are not subject to bankruptcy proceedings, so you still have to pay off your taxes when you are declared bankrupt. Only death can absolve you from paying taxes.
The beauty of a chapter 11 is that it provides for debt restructuring. In fact, it is the debtor who is required to come up with a repayment plan to clear their business or corporate debts. The monthly payments are based on the average net income of the debtor, and not what they owe. This means that they can easily clear their debts without making drastic changes in their business.
It is important to note that bankruptcy is a serious legal process that nobody should opt for before considering the pros and cons. If you are running a successful business with a powerful brand, for instance, you should check all the cons to see if bankruptcy is for you. After all, your brand is too valuable to tarnish through a bankruptcy petition. Once your business is declared bankrupt, you may lose business, scare away potential investors and make suppliers uneasy when it comes to dealing with you. The upside is that you will be able to get rid of all your business debts.
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Find an overview of the benefits of consulting a Chapter 11 Oakland attorney and more info about an experienced lawyer at http://www.centralcoastbankruptcy.com/chapter-11.html right now.
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