Dealing With Bankruptcy When It Comes Knocking

May 16, 2012 by  Filed under: Bankruptcy 

Bankruptcy is not a term that we generally throw around in conversations. It is a term that has a negative connotation to it and a negative aura that follows it around. But, bankruptcy was developed and inserted into our law for a positive reason – sometimes individuals and businesses alike, find themselves in a financial hole that they cannot get out of. According to the Supreme Court the purpose of bankruptcy law is that; “It gives the honest but unfortunate debtor…a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.”

Through that statement it becomes clear what the purpose of bankruptcy is. It is negative in the context of what led you to this position but it is positive in that it provides hope and relief for the future.

It’s Not Personal

Financial debt can often be embarrassing and we choose not to talk about it. But, refusing to talk about it is what leads us to the doorstep of bankruptcy. It can be avoided if you make the attempts to do so early on. When you find yourself reaching financial troubles reach out to professionals for help and/or contact your debt collectors individually to attempt to work out an adjustment to your current agreement. A little good will, honesty, and effort on your part can go a long way in reducing your current financial burdens.

If you have tried the suggestions listed above, and you have made every attempt to avoid bankruptcy, and it still seems inevitable, then you must begin exploring your options. There are many types of bankruptcy out there. There are specific procedures for businesses and others for individuals. So, getting all of these small details in line first will better assist you in your preparation.

The most common form of personal/ individual bankruptcy is that of Chapter 7. In the end if you are approved you can be discharged of most of your debt. Chapter 7 does allow for exempted assets for individuals, such as your house and car. Other items exempted under this form could include any student loans that you have taken on. Chapter 7 for businesses is a complete liquidation of assets. In other words the business will be shutting its doors for good. Their assets will be liquidated and then the funds raised will be distributed among the debt collectors.

When choosing the route of bankruptcy it is always easiest to consult with a bankruptcy lawyer who can assist you in your complete understanding of the processes and help you decide what may be the best route for you to take.

John understands that financial hardships can affect honest, hard-working people. His area of expertise is bankruptcy law and aims to provide all his clients with the fresh start they are looking for. His business philosophy is guided by one thing, helping people get back on track. As a Denver bankruptcy attorney his practice has given him the opportunity to directly impact the lives of many people.

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