What You Need to Know About the Chapter 7 Bankruptcy
If you are laden with anxiety because your business is on the verge of bankruptcy, filing for the Chapter 7 will help you reorganize your debt to avoid liquidation of your company assets. This also gets you off the hook of acquiring additional liabilities caused by charges against your monthly obligations and deflects collection calls that may hurt your business credit standing.
Bankruptcy Opens Your Financial Standing to Public Inquiry
When filing for the Chapter 7 law, be prepared to put your information into public scrutiny. This exposes every aspect of your financial standing including the mistakes and how your company handled your finances in the recent years.
Filing for bankruptcy protection will also require you to file a huge amount of paper works which will be added on to the bankruptcy schedules. Among the things you need to present to the arbitrary court includes company assets, debts, income, recent financial activities and transactions, and expenses.
You will also be required to attend several instances where you face with your creditors. Also called as a “meeting of creditors”, this can be extremely uncomfortable as you disclose your financial standing with them and the bankruptcy trustees.
It Affects Your Credit Standing for Several Years
It normally takes a debtor two years to start recovering from the financial burden they incurred from your business. In most instances, these creditors will not likely have business with you for the years to come following your Chapter 7 Bankruptcy filing.
Working on your credit standing will help you get a better score so you can start rebuilding your finances. This will help you and your company focus on the changes that can help bring financial stability in the long run.
If you are considering Chapter 7 Bankruptcy for your business, debt relief agencies like Stratton & Green, ALC can help you cross the bridge worry free. Not only will it protect your property, but also cease collection actions, and discharges all your debt balances from financial institutions you have acquired debt from.