Bankruptcy is a devastating event, but it can have positive benefits for those who are in need of financial assistance. The COVID (coronaviruses) pandemic has greatly damaged the economy, making many businesses and families worried about how they will continue to pay for all the basic necessities. In the midst of this economic crisis, you may be wondering if filing for bankruptcy will effect your business or if you should research how bankruptcy will impact your current bankruptcy.
In the event that you opt to file for bankruptcy, it is important to know the negative effect that it will have on your business. Many people feel that the worst thing about bankruptcy is that it forces them to close their business and stop working altogether. If you are thinking about filing, it is important to understand what your options are and which one is right for your situation.
As you begin to look into filing for bankruptcy, it is important to decide the type of bankruptcy you want to file. Bankruptcy is a document that is filed in order to stop creditors from collecting payments that have been made on debts. The most common type of bankruptcy is a liquidation, which allows a business to become financially responsible for all debts that have not been paid.
There are a few important considerations that you must make before choosing your bankruptcy. One of the first decisions that you must make is whether or not you wish to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy. These types of bankruptcy filings are typically for business owners that have a large amount of debt or those that have run their business into a severe financial crisis. This may mean that the bankruptcy will have an effect on your ability to get a loan or that creditors may see your bankruptcy as a sign that your company is not able to meet their obligations.
Another important consideration to consider when filing is the length of time that you will be allowed to keep your business operational after filing bankruptcy. You should only choose a bankruptcy that is longer than six years, since you want to avoid having to keep reopening your business while facing many problems. If you file for Chapter 13 bankruptcy on a business that has been around for a few years, it is possible that you will not be allowed to keep your business open at all. The process of filing for bankruptcy is much slower than filing for a Chapter 7, so it is important to be certain that you are comfortable with the length of time that it will take to fully repay your debts.
It is also important to consider the COVID that you want to file. There is currently no universal definition of a COVID, which means that there is no specific disease that will be covered by a COVID. For example, the COVID (coronaviruses affecting children) will not affect your bankruptcy if your business does not sell for at least five years. If you have any questions or concerns about a COVID, you should ask for clarification from a qualified professional.
In addition to the types of CO VID that your attorney will be able to help you with, you should also decide whether or not your bankruptcy is appropriate for your business. While filing under CO VID is a common option, there are other options that include business reorganization, liquidation, debt management or bankruptcy.
The last step to filing is evaluating your options to help you figure out whether or not you should file for bankruptcy. Once you have determined if your circumstances warrant the filing, your lawyer will be able to help you decide the best course of action.
Bankruptcy is tough Call us at West Coast Justice and tell us the facts we need to held guide you.