You’re Filing for Bankruptcy. What’s Next? | Branded Voices

Some think bankruptcy is the end. Others (mostly those who have been through it) say it’s more of a reboot, a reincarnation of your business and entrepreneurship, although they aren’t impatient either. to see him again. If you’ve been thinking about bankruptcy lately, you can contact Stoppers to learn more about it. But this is what you need to know before taking any action.

Become untouchable

So you are going to take your case to the courthouse. It will take a bunch of documents that prove your inability to handle all of your debts. This filing requires a certain fee, but if your income is below a certain level (say, 150% of the federal poverty guidelines), you can request a waiver of your fees. At least it’s a moment to catch your breath.

The day you file for bankruptcy, your creditors are notified. This means that they can no longer try to collect their debts from you on their own. However, your day-to-day affairs will be investigated. And if they find out that part of your property has been transferred to family members, or that you have incurred new debt just before, then … In short, you better not do it. Or you can feel a whole different kind of untouchability.

All that’s mine ..?

Since you are responsible for your property, can it happen that after the procedure everything that belongs to you is taken with you? Well, not exactly. First of all, you need to undergo a resource test to decide if you are not abusing the system. It will take into account your income from the last 6 months and then lead the judges to the decision.

If your declaration is satisfied, the consequences will not be limited to paying off the debt. You will almost certainly lose all of your real estate and non-exempt assets (if you file for Chapter 7). This may mean that your debts need to be restructured and that you strive to cover them over the next few years if you apply for Chapter 13. You could lose your credit cards or lower your credit limit. Your credit score will definitely suffer from this experience. In addition, it will be more difficult to obtain the necessary loans for a new startup.

Learn to win

It doesn’t just mean that you have to reflect on your actions and see where you went wrong. No, you may be formally required to take the bankruptcy course. It will take some of your precious time (well, now it’s not as valuable as it used to be), but this course can really give you something to be successful next time around. Remember, none of your creditors want you to go bankrupt, and least important is the state.

Do your research

Either way, you need to do your own research before you decide to file. There may be other ways to get rid of these debts, such as contacting each creditor separately and developing a restructuring plan. But if not … well, if you file a case, you will need legal support like never before (and hopefully never again). Either way: stay strong!

As you read this, did you feel that bankruptcy is the problem but not the end? If so, you can share it on Facebook or Twitter to bring this idea to your friends who might have this kind of problem. Or leave a comment to tell your bankruptcy story or give readers some advice.

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