Bankruptcy services are in place to assist people all over the nation. When you file for bankruptcy, it essentially means that you are declaring by law that you are unable to pay outstanding bills and debts. This may be due to a job loss or financial bind. Regardless, it is important to understand bankruptcy services, and how terminology like chapter 7, consolidate, chapter 13, and credit counseling apply. Below are some key terms to assist you.
Chapter 11 Bankruptcy – This is a specific chapter of the United States Bankruptcy Code that concerns companies and businesses. Chapter 11 laws allow businesses to be protected from creditors, while downsizing or restructuring their business and debts.
Liquidation – This refers to a process that involves a company ending or coming to an end by redistributing assets. Often courts and attorneys are used if any unsettled debt or consumer lawsuits are involved. Chapter 7 bankruptcy is what governs the process of liquidation.
Credit Counseling – Before an individual files for chapter 13 or personal bankruptcy through a lawyer, credit counseling is often recommended. This is to ensure that people are not abusing the legal act of filing for bankruptcy. Credit counseling is provided through a government-approved organization, and it helps educate people on finances and debt.
Loan Consolidation – The act of combining debts, so that only one debt or bill remains. A consolidation loan can be taken out in order to pay off other loans or credit card debts. This often means a lower APR or annual percentage rate, and less money lost to interest.
Personal Bankruptcy – A legal procedure that involves filing for chapter 13 bankruptcy, which means officially declaring the inability to pay outstanding bills and debts. A court setting and lawyer or attorney are often required.
Deciding to file bankruptcy is an emotional decision. It may delete your debt but it also degrades your credit. If you're overwhelmed by uncontrollable debt, insufficient financial income, or the need to streamline your assets, then bankruptcy liquidation or some other kind of consolidation may be the best idea. Knowledgeable and supportive bankruptcy services are a necessity if you're filing for chapter 7, chapter 11, or even chapter 13. Relief is available. Bankruptcy attorneys are available for restructuring advice, money counseling, or other issues like insolvency and how it affects your company and consumers, if it's a business you're filing for. Whether you are looking to file personal bankruptcy due to excessive loans, credit card debt, medical bills, stratospheric mortgage payments, or whatnot, the attorneys can help with the liquidation process. If your business isn't surviving in the rough economy and you need to eliminate some money problems or perform some kind of financial consolidation, they can help with that too. Assistance is available and there isn't any shame in taking the bankruptcy route. Self abuse is easy but unnecessary. Your credit restores itself after a few years and you can learn the tools to protect your assets in the future. Remember, taking care of your situation now will help you prosper in the future. Contact a bankruptcy lawyer for more basic information if you're unsure about how to start or if you should begin the process at all. Or, if you have one, a financial analyst or bank representative can offer some tips or suggestions for free or at a low cost.