Commercial Bankruptcy - Commercial Bankruptcy Means Filing for Chapter 11 Protection

Author: James Banks

Whether you have been in business for a long time and are now facing new and very strong competition from a chain, or you are operating a new venture that just has not gotten off the ground, when the enterprise begins to experience serious business debt problems, you will probably consider bankruptcy. The United States commercial bankruptcy statutes are in place and Chapter 11 proceedings are specifically aimed to aid persons who are trying to pay their business debt, but are unsuccessfully struggling to do so. But Commercial Bankruptcy may not be the answer you are looking for.

It may be that the business debt help you receive from a business debt management consultant may be a better route to meeting the financial obligations and getting the venture back on track. A reorganization of the venture's finances such as businesses debt consolidation or a business debt settlement may provide the real relief that is needed without petitioning for formal Chapter 11 business bankruptcy protection.

With this in mind, it is required that a person seeking chapter 11 Commercial Bankruptcy prior to filing and a business management plan is developed to file in addition to the petition. There are two forms of bankruptcy protection offered. Chapter 13 is incorporated for individuals who have a debt limit of $175,000 but it can be and often is extended to individuals who operate a small business.

But the most widely used Commercial Bankruptcy tool that is designed to give business debt help is the chapter 11 business bankruptcy plan. There is a $1000 fee for filing a chapter 11 business bankruptcy, and the debt management plan must be filed with it. It is a misconception that Chapter 11 discharges business debt; on the contrary, the assets of the business are placed under the guidance of a conservator who will use the business assets to repay the financial obligations over a specified period of time, usually 3 years, if possible.

Is this the form of business debt help you are really looking for?

Seek the advice of a business debt management consultant for other options that may resolve business debt and alleviate pressures from creditors without filing for commercial bankruptcy. If you want to get debt relief without placing the business in an inoperable position, find out about business debt consolidation or business debt resolution, which may be a better fit to your business' specific situation.

It may be far better to enter into a reorganization of your enterprise that will include negotiation of repayment of the business debt with each and every one of the creditors. It is crucial that a plan such as this is all-inclusive, leaving out a lender or giving preferential treatment to one creditor will make the plan null and void. The debt negotiation plan will transfer some of the organizational responsibilities from you to the consultant who will also become the primary contact for the creditors. You will be required to make one payment each month that has be worked out by the counselor to fit the incoming cash flow. This payment will be dispersed among the creditors according to a pre agreed amount. The payments are lowered because the interest rate of the loans has been eliminated or reduced in the negotiation, thus more money goes directly to paying down the principal and the business debt is paid off more rapidly. This process restores a good credit rating instead of tainting it with the stigma that is often associated with business bankruptcy. With the help of a qualified business debt consultant, you will never have to answer yes to the question, "Have you ever filed for commercial bankruptcy?" but you will still receive all the business debt relief that you require.

Check these links to learn more:

http://www.commercialdebtcounseling.com

http://www.commercialdebtcounseling.com/business/business-y/business-index.shtml

Article Source: http://www.articlesbase.com/business-articles/commercial-bankruptcy-commercial-bankruptcy-means-filing-for-chapter-11-protection-144614.html

About the Author

James Banks is a contributing writer to http://www.commercialdebtcounseling.com and is currently writing some special articles to guidebusiness owners on how to manage debt and avoid bankruptcy. For FreeInformation on Commercial Bankruptcy, call toll-free1-877-324-1218.

New York Bankruptcy Lawyers: Chapter 7

Author: marryzalaa

Bankruptcy is a legally declared inability or impairment of ability of an individual or organizations to pay their creditors. Bankruptcy law provides for the development of a plan that allows a debtor to resolve his debts through the division of his assets among his creditors. This supervised division also allows the interests of all creditors to be treated with some measure of equality. Few bankruptcy law proceedings allow a debtor to stay in business and use revenue generated to resolve his or her debts.

Customer advocate site designed to tell you, the people what you need to know about this new law with words you can understand. Many people turn to a bankruptcy attorney for help. Bankruptcy Lawyers can help explain bankruptcy law and ensure that the bankruptcy process goes as smoothly as possible. When most people think of bankruptcy, they think in terms of Chapter 7, where the unsecured debts are normally discharged in full. Bankruptcy of any variety is a difficult or deal at best, but at least with Chapter 7, a debtor was able to wipe out their debts in full and get a fresh start. Chapter 13, however, is another story, since the debtor must pay back a significant portion of the debt over a 3-5 year period, with 5 years being the standard under the new law. Prior to the advent of the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005," the most common reason for someone to file under Chapter 13 was to avoid the loss of equity in their home or other property. And while equity protection will continue to be a big reason for people to choose Chapter 13 over Chapter 7, the new rules will force many people to file under Chapter 13 even if they have NO equity. That's because the means test will take into account the debtor's income level.

Filing Bankruptcy is a difficult decision to make. In 2008 over 1 million Americans filed personal bankruptcy in order to improve their financial situation. Bankruptcy can help you prevent foreclosure of your home, stop debt collector harassment and get a fresh financial start.

However, the figures used by the court for living expenses are NOT your actual documented living expenses, but rather the schedules used by the IRS in the collection of taxes. A big problem here for most consumers is that their household budgets will not reflect the harsh reality of the IRS approved numbers.  So even if you think you are "safe," and will be able to file Chapter 7 because you don't have $100 per month to spare, the court may rule otherwise and still force you into Chapter 13. Some of your actual expenses may be disallowed. What remains to be seen is how the courts will handle cases where the cost of mortgages or home rentals are inflated well above the government schedules. Will debtors be expected to move into cheaper housing to meet the court's required schedule for living expenses? No one has any answers to these questions yet.

It will be up to the courts to interpret the new law in practice as cases proceed through the system. The two most common consumer bankruptcies are Chapter 7 and Chapter 13 bankruptcy. Sponsoring bankruptcy lawyers handle these types of bankruptcies exclusively so you can be sure you are getting accurate legal advice when you file bankruptcy. Bankruptcy attorneys will fight to protect your rights and your property. Bankruptcy attorneys fight the aggressive and annoying creditors for you. They can help you keep your home, vehicles and other property. A bankruptcy lawyer will be committed to getting you debt relief and providing you with valuable information, services and advice to get you a better financial future. There are many convenient locations to make filing bankruptcy or learning about the alternatives we offer, even easier.,

Article Source: http://www.articlesbase.com/bankruptcy-articles/new-york-bankruptcy-lawyers-chapter-7-1545458.html

About the Author

Storobin & Spodek LLP is a NY Chapter 7 law firm. If you are looking to speak to a Bankruptcy Lawyer New York, please call (800) 391-8392

The Advantages Of Chapter 11 Bankruptcy

Author: Joseph Seagle

Chapter 11 bankruptcy was originally designed for businesses but individuals may also file under this chapter. Those individuals who exceed the debt limits of chapter 13 bankruptcy are required to file under chapter 11. The current debt limits for chapter 13 is $1,010,650 for secured debts and $336,900 for unsecured debts. The debt limits appear to be low for those individuals who own more than one property whose values have dropped significantly.

There are many advantages of being in chapter 11 as opposed to chapter 13. When individuals file for chapter 7 or chapter 13 bankruptcy, they are subjected to a means test. Those debtors who are above the median income limit for their household size cannot file under chapter 7 and if they file under chapter 13, they are required to make payments in a five year plan. However, the means test does not apply to the individual debtors in chapter 11 cases so they may propose repayment plans that are less than five years and therefore, they will end up paying less of their disposable income to unsecured creditors.

In chapter 11, the debtors can modify their secured debts such as car loans and mortgages. There is a time restriction in chapter 13 cases where the debtor must have financed the vehicle more than two and half years ago before the loan can be reduced to the value of the car. However, in chapter 11 cases there is no time restriction so if you purchased a vehicle a year ago and if the loan is more than the value of the car, you are only required to pay back what the car is worth and not the original balance. In both chapter 11 and 13 cases, the debtors can modify the mortgages on their rental properties. For example, if the value of the property has dropped below the outstanding mortgage, you are only required to pay back the amount based on the current value of the property. The only caveat is that individual debtors are not allowed to modify their primary residence.

Once the values on the secured properties have been established, the debtor will then propose a plan of repayment of the secured and unsecured debts. The plan duration can be controlled by the debtor such as a three year or longer plan. The debtor must submit the plan to the creditors for a vote and if the case is to proceed forward, the debtor must receive at least one vote from the creditors. The remaining creditors that object to the plan can be forced to accept the plan by the court which is called a

Article Source: http://www.articlesbase.com/law-articles/the-advantages-of-chapter-11-bankruptcy-1917867.html

About the Author

Joseph Seagle, Bankruptcy Attorneys Orlando, Florida

Steps to Take Before Filing Chapter 7, Chapter 13, or Chapter 11 Bankruptcy in Tucson

Author: Jeffrey Judge

Steps to Take Before Filing Chapter 7, Chapter 13, or Chapter 11 Bankruptcy in Tucson

Bankruptcy is a legal proceeding in which a person who cannot pay his or bills can get a fresh financial start.  The first step is to stop using credit in any form.  You can still use your debit cards normally but no new charges on credit cards or new personal loans.  Any recent debts may considered fraudulent or an abuse.  The second step to consult with an experienced bankruptcy lawyer who will guide you through this complex area of law. 

Bankruptcy is a very complicated and confusing area of law.  It is critical that you consult with an attorney experienced in bankruptcy before you make any mistakes that may delay and prevent your filing.  Third, you need to complete a Credit Counseling Class.  Within 180 days before you file chapter 13 bankruptcy in Tucson, you must receive budget and credit counseling from an approved credit counseling agency.  The agency will review possible options available to you and will assist you in reviewing your budget.

Some of these agencies offered debt management plans (DMP), which is a plan to repay some or all of your debts.  They organize and offer a repayment plan to your creditors.  If your creditors agree, you start sending the DMP one monthly payment and they distribute payments to your creditors as agreed.  If you are able to complete the program, you will have paid off all of your credit card debts.

Is a Debt Management Program a good idea?  A DMP can be a good idea for some.  However, counseling agencies have been known to force individuals into a DMP when bankruptcy may actually be a better option for them.

When speaking to a debt counselor you should keep the following in mind:

• Bankruptcy is not necessarily to be avoided at all costs.  In many case, bankruptcy may actually be the best choice for you. 

• If you agree to a debt management plan that you can’t afford, you may actually end up in bankruptcy anyway.

• Entering a DMP will be reported to credit bureaus and will also negatively affect your credit score.

• Debt management programs generally only work with credit card companies.  Banks, car lenders, payday loans stores generally refuse to work with DMPs.  If you have more than credit card debt then a DMP probably won’t provide much help.

It is important to note that just because an agency is “approved” for bankruptcy counseling, does not guarantee that the agency is good.  Even the good agencies may not be able to help if you are already facing deep financial trouble.

Beware of any debt management program that promises that you can pay off your debts at a fraction of what you owe.  Many of these programs are scams with only the intent to your money.  I meet people every week who have been the victim of this type of scam.  My experience is that most creditors will not consider settling for less than the total owed without a lot of pounding your head against the wall and a ton of documentation regarding your finances.  Even then, they generally will deny any reduction. 

For debt relief and bankruptcy help in Tucson, it is a good idea to contact an experienced bankruptcy attorney first.  Unlike a credit counseling agency, a bankruptcy attorney is qualified to give you legal advice to assist you with your financial situation.   They can also refer you to a legitimate debt management program if you want to explore that option.

Article Source: http://www.articlesbase.com/bankruptcy-articles/steps-to-take-before-filing-chapter-7-chapter-13-or-chapter-11-bankruptcy-in-tucson-1756772.html

About the Author

Brought to you by Jeffrey Judge, an attorney that heads one of the bankruptcy law firms in Tucson. Judge Law Firm, 1647 N. Alvernon Way, Suite 1; Tucson AZ 85712; 1-866-958-4389.

What Chapter 11 Bankruptcy Law Entails

Author: Peter Gitundu

Chapter 11 bankruptcy law is also known as the reorganization code applicable to partnerships and corporations. It allows for businesses to make a plan on how to pay off their debts without having to sell their property. This comes as an opportunity for businesses to keep on operating even when they are in a financial crisis. Partnerships and corporations are eligible to file under this chapter in court. It may be voluntary, meaning that the debtor will file the petition, or involuntary where creditors who meet some standard file the petition.

To have the court accept the bankruptcy petition, he should also attach financial documents of the previous years operations. They must have gone through credit counseling on how to manage the debt. A fee is paid to the court clerk to cover filing charges and to pay the trustee. These can be paid in installments for not more than one eighty days after filling the petition. Once a voluntary or involuntary petition has been filed, he assumes the position of a “debtor in possession” meaning that he is still in control of the property.

For the bankruptcy petition to be accepted in court, he should also file a reorganization plan and a disclosure statement which includes information on the assets, liabilities and the business affairs. This enables the creditor to have an informed perspective on the reorganization plan filed.

Chapter 11 identifies the debtor under a corporation or a partnership as a separate entity from the business and as such personal property is not at risk. However, for a sole proprietor, he is part and parcel of the business and therefore personal property may be at risk.

Article Source: http://www.articlesbase.com/personal-finance-articles/what-chapter-11-bankruptcy-law-entails-892126.html

About the Author

Peter Gitundu Researches and Reports on Bankruptcy. For More Information On Chapter 11 Bankruptcy, Read More Of His Articles Here CHAPTER 11 BANKRUPTCYYou Can Also Add Your Views About Chapter 11 Bankruptcy On His Blog Here CHAPTER 11 BANKRUPTCY

Why Do You Need Bankruptcy Attorneys?

Author: Judy Dixon

It is abysmal and often very difficult to take see yourselfbeing insulted for debt, to see your property repossession and face foreclosure or simply not being able to see yourself on the other side of all your debts. If you also find yourself in such a case of mounting debts and torturing creditors then perhaps you should take the first appointment you get with a bankruptcy attorney. For bankruptcy lawyers it is their business and they know about everything that goes around in it so they will be able to sketch out a viable alternative for you which you might not even think can be worked out. So give in an expert and let them help you.

Along with repaying your debts and the bankruptcy attorney can also guide you to sell off your property in order to repay the creditors. And if selling off your property is not exactly your idea of getting rid of all your debts the bankruptcy lawyers can also assist you in making an arrangement with your creditors approved by the court to repay them in a pre-determined frame of time. Again, if you hire a bankruptcy attorney they are updated with every last bit of information regarding the United States Bankruptcy code. Bankruptcy is not an easily gliding procedure it can really confuse nonprofessional so a bankruptcy lawyer really can make things easy and facilitate them for you. The most common procedures in bankruptcy proceedings are Chapter 7 wherein you follow the debt liquidation or reorganization. The other one is arranging for repaying the indebted money under the Chapter 9, 11, 12, or 13 bankruptcies.

If you are thinking of filing for bankruptcy, a bankruptcy attorney is recommended. The rules of bankruptcy have changed and new norms have been introduced which a nonprofessional cannot be expected to know about. Again, the new rules have made it only difficult to file for bankruptcies all the more reason you will need bankruptcy lawyers to make your experience more pleasant after everything that you are already going through. They will be able to suggest you ways to get rid of your debt mountains, deal with your property and assets in a way that will benefit you and give you more time at hand.

Article Source: http://www.articlesbase.com/banking-articles/why-do-you-need-bankruptcy-attorneys-1634939.html

About the Author

Bankruptcy Attorneys also work with the creditors and give them the assurance that their funds will also get recovered back. So a bankruptcy attorney is obviously a person you are going to thank once you see the benefits of hiring them.

]]> http://www.realbankruptcyinfo.com/1110/filing-a-bankruptcy/feed/ 0 http://www.realbankruptcyinfo.com/1087/bankruptcy-chapters-you-need-to-know/ http://www.realbankruptcyinfo.com/1087/bankruptcy-chapters-you-need-to-know/#comments Fri, 12 Mar 2010 02:17:34 +0000 admin http://www.realbankruptcyinfo.com/1087/bankruptcy-chapters-you-need-to-know/

Bankruptcy really does not seem to be a preferable or the most suitable option. However while you are on the track that cannot help you to lead on or switch on to the other alternatives or when you are in the state where you have possessed yourself with overwhelming debts, all you require or the way that may help you is going for a personal bankruptcy.

It probably, may help you to once again to raise your credit score by enhancing the repayments of al the pending debts. It lets you to live with a risen head in the society, you may once again. Moreover it encourages a fresh start for you by clearing your debts.

Filing for a bankruptcy, you must know about the chapters and the different laws of bankruptcy. It helps to clear out the existing debts.

Let us have a short and quick view over the bankruptcy chapters. You should know at least its use or application under different circumstances. Here you are given with some of them.

There are about six different bankruptcy chapters. They are: chapter 7, 9, 11, 12, 13

and 15. Of these the most common ones are chapter 7 and chapter 13. Chapter 11 & 12 are also used sometimes.

Chapter 7: it refers to the liquidation process. In this the debtor appoints a trustee who collects the non-exempt property of debtor, sells them and uses the money or cash to pay to the creditors. It does not help out to clear the recent taxes, student loans, maintenance expenditure, student loans, speeding tickets, and criminal penalty, debts that involved fraud or intentional misdeed.

Chapter 13: it aids in keeping your property and valuable assets safe while you are given approval to repay the debts on your own over an extended period of time. Repayment plans depend upon your income and type of and amount of your debts. You may be assigned a trustee who will handle your repayments. One can also repay the debts through payroll deduction; if certain eligible pre-requisites are met.

Chapter 11: it refers to the reorganization process. It is for those who own a business; those who want to reorganize their business. It again helps to keep all your property and assets and to continue with your business. You need to meet certain legal conditions; in that a proposal plan of reorganization is to be prepared and presented before the creditors and your plan thus enters into an election. If a major percentage is in your favor, the court approves and confirms it and you become legally bound to it.

Chapter 12: it refers to the simplified reorganization; specifically meant for the farmers. They can repay their creditors through their future income while keeping with their property and assets.

Chapter 9: it refers to the municipality bankruptcy which is formulated for the different cities, towns, countries, states, etc.

All these can undergo significant changes as per the new bankruptcy laws. So it is better to get nicely informed about all these by keeping in touch with a wee-qualified attorney and a knowledgeable bankruptcy lawyer who would certainly help you a lot.

The term "Chapter 7 bankruptcy" is a term that is thrown about a great deal in the media, but clear and concise explanations of the term are usually not offered. Because of this, there is some confusion of what exactly chapter 7 bankruptcy actually is and this confusion sometimes leads to people making critical errors in judgment when the individual contemplates such a filing.

Certainly no one wants to become involved in bankruptcy proceedings. There is good reason for this. In order to enter bankruptcy proceedings, a person will have to have debts that greatly exceed his or her net worth and, in addition, have no visible or viable means of paying back the debts. When a person or corporation finds itself in such a position, there becomes the need to file for bankruptcy protection.

This is a legal situation and it requires the courts to rule in the matter. There are a number of different forms of bankruptcy such as chapter 11 bankruptcy and the more common chapter 7 bankruptcy. Since chapter 7 bankruptcy is more common for individuals, it is important that a detailed explanation of what chapter 7 bankruptcy actually is.

The Definition Of Chapter 7 Bankruptcy

According to the law and the United States court system, Chapter 7 bankruptcy refers to liquidation of assets that are not legally exempt from liquidation in order to pay off creditors and debtors. Chapter 7 is an option open to individuals, businesses, partnerships and corporations. There is, however, a special clause open to the individual within the framework of this chapter filing that is not available to the other entities. That special clause is known as a "discharge." What a discharge refers to is the freeing of the individual from certain debts.

Filing Chapter 7 Bankruptcy

On a baseline level, those filing for Chapter 7 must provide copies of tax returns; executed contracts and leases that have been expired; financial affairs statements; proof of assets and liabilities; and copies/schedules of current expenditures and income. For individuals there are additional items that must be provided to the court as well. These items include copies of credit counseling reports and repayment plan programs, employer payments and statements of income, interest payments on student loans, etc.

This is, of course, a brief overview and more detailed information is provided by the government and federal courts at the website uscourts. However, trying to figure out Chapter 7 protection by yourself is not advised and it would be far more prudent to seek the advice of a legal professional as well.

Upon first recognition that you need to take drastic measures against your mounting pile of bad credit, it can be overwhelming. So many different avenues to take, do you want to file chapter 13 bankruptcy or do you qualify for chapter 7? And how exactly is chapter 11 bankruptcy any different? You've made the tough decision to file bankruptcy, now you just don't know where to start. Here are some tips on what to do first when facing a financial crisis.

Bankruptcy Rule 1: Stop using your credit cards. Using credit cards with intent to file for bankruptcy will give creditors the opportunity to challenge your discharge of the debt. If you've accumulated the debt knowing you could not repay it creditors have the option to nullify your debt discharge- usually done through a lawsuit or adversary proceeding. Lesson one, no more charging. Period.

Bankruptcy Rule 2: See to it that there are no other options for you to utilize. Between debt management, credit counseling, and all the untrustworthy organizations promising a quick fix, there is no doubt that it will require some homework. But do your research and make sure that there isn't a more gentle method of cleaning up your credit before you resort to the big "B".

Bankruptcy Rule 3: Once you've narrowed down your options and filing bankruptcy is the only one that seems like it will work for you and your situation, find a good lawyer. Many people try to go through this process on their own and end up losing big in the end. Proper legal council will guide you through the process, offer advice on which chapter of bankruptcy is best for you, and will be a huge asset if it comes down to negotiating for better terms with your creditors.

Bankruptcy Rule 4: Figure your costs. Bankruptcy filing fees vary widely from state to state and naturally different lawyers will have different fee schedules, some charging a flat fee, others charging based on how deeply you are in debt. Still other require you to pay up front before they even start the process, but once you have started working with a lawyer, refer all creditors to this office.

Bankruptcy Rule 5: Depending on whether you're filing for chapter 7 or chapter 13 bankruptcy, prepare to give up some of your belongings. Exempt items such as tools of your trade and low value heirlooms are considered exempt items. All others fall in the non-exempt category and are likely to be sold so that payments can be made to your creditors. Payment amounts differ between chapters; in chapter 7 bankruptcy you may never have to pay a creditor and had all of your debt written off. However if filing for chapter 13 bankruptcy you will be put on a three to five year payment plan at the end of which any outstanding debt will be written off. Again a good lawyer will be able to tell you which one would help more for your specific situation.

If you file chapter 7 bankruptcy, on the 60th day after meeting with your creditors to negotiate the terms of your bankruptcy declaration, your creditors forfeit the right to challenge any and all of your discharge and you will receive a notice of discharge. This notice will come within 30 - 60 days after your final payment under a chapter 13 bankruptcy filing Best of luck in all your endeavors and may your financial recuperation be speedy.