Business bankruptcy is a situation when you have made a lot of debts in your business and you lose your source of income. Chapter 7 Business Bankruptcy helps you to settle your debts and save you from going into the streets. For more information on this topic, you can keep on reading.
How Does Chapter 7 Bankruptcy Work?
When you file a Chapter 7 Business Bankruptcy with the help of a lawyer, you will get stay orders on the debts that you have in the market. The court of law has the authority to sell some of your possessions and repay the debts. You will not be able to keep any assets. You will be represented by a lawyer who will help you negotiate with your creditors in the courtroom.
What Is The Eligibility Criteria?
You will need to complete a credit counseling course offered by a verified credit counseling agency within 180 days after you have filed the Chapter 7 Business Bankruptcy Case. Secondly, your average income of the past six months must be less than the median income to be eligible for Chapter 7 Business Bankruptcy. In case, your filing is denied, you have to sustain a waiting period of 181 days before filing again.
Time Taken
The time depends hugely on the complications that are involved in your case. However, normally it takes a time frame of six months from the date of filing to get the end results.
How can a lawyer help?
When you reach a bankruptcy lawyer, they will help you to determine whether you are eligible or not for filing the case. If you are not eligible they will restrain you to go any further and offer you some other means that will help you to receive the debts.
There are a few debts and loans that you will get forgiven. Alimony, childcare support, etc., are some of the debts and loans that you won’t have to pay if you applied for Chapter 7 Business Bankruptcy.
Conclusion
Bankruptcy is not the end of life. Some ways will help you overcome the situation. A bankruptcy lawyer will help you determine how you can get over the financial distress and start afresh in your life. A bankruptcy lawyer has the experience that will guide you through the whole process of filing.
