When you think about filing for bankruptcy, it may seem at first like an overwhelming task. One of your major concerns is sure to be about assets: What will you be able to save?
If you are thinking about filing for bankruptcy, you undoubtedly have many questions. You may have heard of certain terms and need a better understanding of what they mean.
A business bankruptcy is not just a black and white process of filing documents and making your way through the necessary steps. The prospect of having to shut down your company can be devastating from a purely emotional point of view.
Filing bankruptcy is a big step in your financial life, one of the most important decisions you will ever make. You may have preconceived notions about filing that lead you to wonder how good an idea it is.
The medical bills associated with many health issues can be astronomical. If you are receiving treatment for multiple health problems or a serious illness, are recovering from major surgery or require ongoing physical therapy due to a disability, you know how the bills can pile up.
There are many reasons for a business to struggle, even if it enjoyed years of success. A big box store could take customers away from a small retailer. A tornado could destroy a car dealership. A building contractor might have to shut down because of a divorce.
Bankruptcy may be a step you never thought you would have to take, but you need a solution to your mounting debt, and quickly, before the problem consumes you. It may help to know that you are just one of about 1.5 million people a year in the U.S. who file for bankruptcy. Your circumstances are probably similar to many of theirs.
If you decided to file Chapter 13 bankruptcy, you must manage your debts by submitting a repayment plan for court approval. You will need to provide monthly or bi-weekly payments in fixed amounts to a trustee, who will distribute the funds to creditors in accordance with the plan.