Sunday, June 9, 2019

Tips For Filing A Chapter 11 Monterey

By Ruth Butler


Bankruptcy is a legal option for debtors to settle their debts without paying the outstanding balance of their debts. Both businesses and individual debtors can file for bankruptcy to get debt forgiveness. Whatever the case, it is crucial you look for a competent lawyer to advise and guide you through the process. After all, legal counsel is absolutely necessary when filing for chapter 11 Monterey.

Since there are many lawyers in the industry, there is need to do a comparison to identify the best lawyer for your needs. Ideally, you should make a shortlist of the most experienced bankruptcy lawyers in the city. After that, you should search for reviews and testimonials. After reading them, you should be able to identify the most suitable lawyer. A comparison of legal fees should also be done before a decision can be made.

You can file for chapters 7, 11 or 13 bankruptcies depending on circumstances. If you are an individual debtor, chapters 7 and 13 are your only options. If you are a corporate or institutional debtor, chapter 7 and 11 are your only options. Your financial situation is what will dictate the chapter you use to get rid of all your bad debts.

When looking for bankruptcy protections under this option, the owner or management of the company or business needs to file the necessary paperwork and submit a plan on how they plan to repay their debts. The plan must be presented to the creditors and the court. If approved, the firm will have to make monthly payments over a period of several years to get debt forgiveness.

It is crucial to note that with this chapter, the trustee will only be required to accept regular monthly payments to settle the outstanding debts. No liquidation will be done. The monthly installments are usually based on the financial muscle of the debtor, and not what they owe. After a few years of making regular monthly payments, the outstanding debts will be forgiven.

With this option, debtors do not lose their assets to liquidation. What happens is that the trustee helps the firm to come up with a repayment plan for their debts. The plan must be presented to creditors, who will ask questions. After approval of the plan, the debtor will retain all assets and be required to make regular payments to the trustee every month to service their debts. After some time, all unpaid debts will be written off.

Ideally, bankruptcy should be considered after all other options have failed to yield any results. For starters, you should consider refinancing your debts. If this fails, you should consider consolidating your debts. If these two options, together with other debt resolution options fail, you should consider filing for bankruptcy to get bankruptcy protections.

After a firm has declared bankruptcy under this option, it will be almost impossible to purchase new equipment or sell existing equipment. This is because the trustee will have to approve major decisions, and their work is to ensure no asset is lost. As a result, growing or expanding the business will become a major challenge for the business.




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