Filing for bankruptcy isn’t something any of us want to have to do, and it’s not a decision to take lightly. However, if you find yourself crunching the numbers over and over again, trying to find the solution, filing for bankruptcy might be the only option. If you’re not too sure whether this is the right option, keep reading to discover the full process and to help you through the difficult time.
Do I need to file for bankruptcy?
What other options do I have?
Filing should always be a last resort. There are several other options available before the final step, so consider what else you can do first. Other options include trying to negotiate a settlement with creditors or applying for a more manageable repayment plan. If your business has assets, you might be able to temporarily sell them to cover the debts.
While you are a business owner, it doesn’t mean you’re expected to know everything and do it all alone. Speaking to a financial advisor or debt management agency will help you understand what options you have available before filing for bankruptcy.
It’s often thought that bankruptcy erases all debt. But there are several kinds that will continue to follow you around even after filing. With the help of a debt management agency, you can work to categorize your debt into what can and can’t be erased. If you find that most can’t be erased, chances are, bankruptcy isn’t the right choice.
How do I file for bankruptcy?
There are several ways to file for bankruptcy through a Chapter 7, 11, or 13. Different types of bankruptcy will stay on your credit record for different amounts of time, but it’s worth hiring an attorney to help navigate which is the best option for you. North Little Rock law firm specializes in bankruptcy, employment, and business law, so are a great choice to help you through – what is often – a complicated process.
To file for a Chapter 7, you’ll need income under a certain level. You’ll also need to file several forms to check if you are eligible. If your income is over the level for Chapter 7, you’ll need to apply for a Chapter 13 instead.
You’ll need to download and fill out the package of forms available on your government website and list any assets, debts, income, and expenses you have.
Will I need to go to court?
While a bankruptcy judge presides over your case, it’s unlikely you’ll actually be required to go to court yourself. When you file, you will be assigned a trustee, who will work on your behalf to liquidate your assets and determine how much debt you can pay off.
During the process, you’ll be required to discuss with your trustee why you need to file for bankruptcy. The trustee is there to help you and will be able to answer any questions you might have about your situation.
Filing for bankruptcy is a difficult decision, but you don’t have to go it alone. Attorneys, debt managers, and trustees are all available to guide you through the process with the best of intentions.