Any legitimate business undergoes their individual financial crunches. With the changes in the economy, every commercial institution faces its own problems with finances. When the situation is irresolvable over a period of time with creditors continuously asking for payments, Bankruptcy is imminent.
Bankruptcy can never be the final straw; there are always ways to resolve the situation no matter how severe. The Constitution of USA has various Chapters dedicated to help people in a fiscal trench. It is a matter of finding the right provision and filing a well-drafted petition to the court to declare one’s inability to pay the pending dues. .
Petitions can be of two types when looking at the range of bankruptcy – ‘voluntary’ and ‘involuntary’. The majority of the cases of bankruptcy declarations filed in the US are voluntary and the easiest to resolve. The debtor realizes his fiscal position and applies in the court of law with transparent financial statements to seek the best solution possible to clear pending debts.
Creditors file an involuntary bankruptcy petition where things can take a drastic turn for their debtors. If a debtor is unresponsive and unable to manage their financial affairs, they may lose their property and assets. This form of bankruptcy cases run for long and are rather complex to resolve. However, creditors do recover a fair share of their money after liquidation. The Chapters most regularly dealing with bankruptcy in the US are Chapters 7 and 13. Though there are four other Chapters dedicated to bankruptcy, the others are for special categories and situations.
Chapter 7 cases are about direct liquidation. These are quickly resolved. A trustee is appointed to resolve the debtor’s assets and distribute the money to the creditors directly. Chapter 13 cases are a long term reorganization of the debtor’s finances and involve a settlement of regular payment to the creditors.
However, it is also important to note that not all practitioners of law are honest or transparent. A bad attorney in a state of bankruptcy is indeed a worst case scenario. Looking into the reputation of the lawyers you consult is vital and sensitive as many things could go wrong in such a state of need.
This is why one has to be extra careful when in need of a good business bankruptcy attorney. Bettendorf, IA inhabitants can get in touch with Buckrop & VanDeVelde Debtors’ Attorney., Mr. Buckrop and Mr. VanDeVelde can ensure you a safe solution to your financial troubles are they have years of experience and are up to date with new developments.
Filing bankruptcy requires a lot of decisions and a lot of forms to be completed, especially with the new bankruptcy laws. I suggest you to visit www.bvbankruptcy.com, for the best business bankruptcy attorney Bettendorf, IA.