Whether you’re struggling with credit cards, medical bills, or an unpaid mortgage, mounting debt can quickly spiral out of control, often triggering home foreclosure, car repossession, and creditor harassment. And once you’re overwhelmed with unpaid debt, it can be difficult—or even impossible—to get back on the path to financial freedom.
Many Americans suffer needlessly, or spend their money on credit counseling services with the hope that it will help solve their financial woes. When struggling to pay bills and satisfy their creditors, most people overlook what is often the quickest and most effective solution: bankruptcy. Seriously. If you haven’t already spoken with a bankruptcy lawyer, you should call Ascent Law right away.
Taking steps to starting fresh
Americans are racking up thousands of dollars in debt just to make ends meet – if this situation sounds familiar, it may be time to stop fighting the inevitable and start looking for a way out.
Contrary to popular belief, this process doesn’t have to be painful or embarrassing. With the proper guidance, it’s the simplest way to get back on your feet and take back your life. If you’re tired of being harassed by creditors, and if constant worry and financial pressure are affecting the quality of your life, the path to stability and peace of mind could begin with bankruptcy.
Bankruptcy for Small Businesses
Throughout American history, innovation, the will to succeed and the willingness to take risks has defined entrepreneurs. These are the individuals who built our country and our economy. Every business has a story to tell, and all too many of those stories involve being bested by the innumerable challenges and uncertainties that business owners face on a daily basis. And so, knowing how to deal with an unsuccessful venture is just as important as knowing how to manage the growth of a successful one.
A recent University of Nevada study showed that 14% of those who file bankruptcy did so due to an unsuccessful small business venture. Property magnate Donald Trump is a good example of how filing for bankruptcy can be an excellent strategy in the face of a failing business venture to restructure finances, innovate a solution, and chart a new path to prosperity.
Bankruptcy provides structured methods to deal with personal and business debt. Many small businesses are unincorporated, so the entrepreneurs and sole proprietors of these ventures are eligible for filing certain chapters of bankruptcy that larger incorporated organizations are not. Many times, business owners sign as personal guarantors for their commercial and personal debt, so they become eligible to file for either personal bankruptcy option; Chapter 7 or Chapter 13.
Chapter 7 bankruptcy is likely the option to select should you decide to halt your business operations – any nonexempt equipment and other assets would be liquidated and used to pay off your creditors. The upside is, it’s a safe way to get a clean slate and let go of a business that’s on a collision course.
Chapter 13 bankruptcy can help a struggling business by allowing business owners to file bankruptcy and maintain possession of critical business assets while complying with a consolidated and reduced payment plan over the course of 3-5 years. At the end of the payment term, any applicable remaining debts are wiped away, or “discharged.”
Chapter 11 bankruptcy is a more complex solution for larger businesses dealing with massive amounts of debt. It’s best to speak with an experienced bankruptcy attorney to determine which Chapter is right for you.
This is just a small introduction to dealing with business debt. The bankruptcy process is complex, and even more so when a business becomes involved. It’s important to meet with a bankruptcy attorney to drill down into the specifics of your situation in order to tailor a solution that meets your needs and the realistic goals of your business.
Free Consultation with a Bankruptcy Lawyer
If you have a bankruptcy question, or need to file a bankruptcy case, call Ascent Law now at (801) 676-5506. Attorneys in our office have filed over a thousand cases. We can help you now. Come in or call in for your free initial consultation.
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506