Bankruptcy for Small Businesses

In my line of work, I hear often "My judgment debtor can't go bankrupt" or "My judgment debtor cannot file for bankruptcy protection gain". There is very little that stops a debtor from filing for bankruptcy protection as often as they want. However, those that file more often than the law allows, will have eventually get their request denied (dismissed).

Bankruptcy is usually looked at with disfavor by most people because of the complex and difficulty of the legal system associated with it. Nonetheless, it might serve as the right path from excessive and also troublesome debts.

Banking lobbyists also said the legislation would lead to large numbers of homeowners filing for bankruptcy and would lead to another crisis in the credit markets.

If you file Chapter 13, be sure that you understand that you cannot reverse it at a certain point. You also need to be clear on the amount that you are agreeing to pay. If you cannot afford to make the payments, you will find yourself in a worse position. In most cases, it is far better to make arrangements with creditors and try to get your payments caught up on your own, but for some people that is simply not possible. You need to be certain that you will also know when the arrangements will end. Your attorney should be able to provide you with a date of when the payments will end. You also need to know how filing could impact your credit.

Fortunately, it is only true in most cases that debtors will still be responsible for student loans after a Chapter 7 bankruptcy is discharged. If you can prove a significant hardship to the bankruptcy court and trustee, you may be able to get your student loans forgiven either in whole or in part. You will have to prove beyond reasonable doubt that paying back your student loans is going to cause significant undue hardship. Most of the time, the forgiveness is either not granted at all or is granted 100%. Only in rare circumstances will a trustee forgive just a portion of the student loan, which is why it is so important that you meet all the criteria for student loan forgiveness in bankruptcy.

There are also three kinds of filings, and each of these also have their respective bankruptcy attorneys. If, for example, you plan to file a case, you will need to know what kind of filing your case falls into, and what type of bankruptcy attorney you should hire.

Part of the bankruptcy attorney's role is to use his experience and understanding of the bankruptcy code to help ensure that you're able to keep as much as the law allows. But many people worry about whether or not they can afford to hire an attorney to help them file for bankruptcy. In my opinion, the real question is whether you can afford not to hire an attorney. Going through bankruptcy on your own can be a recipe for disaster – you could end up losing more than you need to.