Are you struggling to pay business debts? Are you feeling the weight and stress of what feels like an endless amount of debt crushing you? Is your business failing to produce enough income to cover expenses? Could your business really benefit from being reorganized? If you are a business owner, filing bankruptcy probably is one of the last things you want to consider. Yet, according to the Small Business Administration (SBA) more than 50% of businesses fail within the first ten years. Unfortunately, filing business bankruptcy is something many business owners need to consider. Filing bankruptcy does not mean the death of your business. Actually, filing either Chapter 11 or Chapter 13 bankruptcy allows you to save your business by reorganizing your debt. Filing bankruptcy can bring much needed relief from financial stress and provide a way for you to give your business a fresh, financial start.
More and more retirees are filing for bankruptcy due to several reasons. Disappearing benefits, rising medical costs, planning inadequately, increasing caretaker expenses, and declining income are a few of the major causes. More seniors are not only filing for bankruptcy, but they also are representing a larger percentage of filers. In 1991, only 2% of bankruptcy filers were 65 years or older. Now, more than 12% of bankruptcy filers are seniors, up 10% in less than thirty years.
Filing bankruptcy is a huge decision. And, there are a lot of smaller, yet extremely important choices to be made regarding the process. Should you file bankruptcy? What type of bankruptcy should you file? When should you file bankruptcy?
Understanding the bankruptcy process can be a daunting undertaking. However, if you break it down into manageable sections, it can be easier to understand. Keep reading the following sections to learn more about the bankruptcy process and how it applies to your individual situation: Bankruptcy Explained, Bankruptcy Types, Why Should You File Bankruptcy, When Should You File Bankruptcy, and Bankruptcy Costs.
All of my clients want to know how quickly they can recover their credit score and so here is the answer. If you are proactive you can have a six eighty or six 90 credit score. Two years after we file the bankruptcy petition the way that you do that is you obtain a credit card immediately after we file. You start using the card responsibly and you only charge 50 percent of the limit on the card and you pay that off every single month. If you do that for two years you’re going to have a 680 credit score in two years.
When debtors file Chapter 13, all disposable income is paid into the plan and used by the trustee to offset plan expenses. Only regular income, not considered disposable, is the income used to establish and make plan payments and pay reasonable expenses, such as: housing, food, and transportation. Tax refunds are considered disposable income and, typically, must be paid into the plan.
Everything You Need to Know About Divorce and Bankruptcy You have probably heard the commonly-cited statistic that about half of all marriages end in divorce. A sizable number of those whom have experienced divorce will also find themselves in need of bankruptcy protection. Family law and bankruptcy law intertwine in several ways. This post […]
Whether you are only considering bankruptcy, or currently in the middle of one, you are probably already looking ahead to the future. Life after bankruptcy may seem scary, but it is actually pretty great! The feelings of stress and anxiety you felt while drowning in debt will have melted away, and you can begin to focus on planning and preparing for your new life. The primary concern for many people coming out of a bankruptcy is rebuilding and repairing credit. If you are wondering how to begin improving your credit score, this post may provide some insight on establishing a solid credit history post bankruptcy.
Deciding to file bankruptcy is a really personal decision. But there are a few red flags which probably mean it’s a really good option. So if you’re considering going into your retirement account and borrowing money to pay off unsecured debts like credit card debts and medical debts, that’s a pretty good sign that it might be time to file bankruptcy. Look your retirement funds are earmarked for your retirement. They are 100 percent exempt in bankruptcy. So if we file a bankruptcy for you nobody can touch your retirement account. So why would we take the money out of your retirement account and pay off debts that are dischargeable in bankruptcy. It probably doesn’t make sense.
Can I file? For the most part, when people seek out bankruptcy relief they are seeking the type of relief offered through chapter 7. To file, you must:
• Reside, be domiciled, or have property or a place of business in the United States (U.S.). A person does not have to be a U.S. citizen to file, nor live in the U.S., as long as they have assets in the U.S.
• You are able to file if you do not have a prior Chapter 7 discharge or it has been more than 8 years, or 6 years since a Chapter 13 discharge.
• Within 180 days before filing the bankruptcy petition, you must receive credit counseling briefing from one of the approved nonprofit agency that focuses on budget and counseling.
• Be subject to a means test to determine how your income compares to Arizona’s median income and whether or not you qualify to file under Chapter 7.