subject: CC Brown Law – Bankruptcy Options for the Self-Employed [print this page] CC Brown Law Bankruptcy Options for the Self-Employed
Lots of challenges are associated with self employment. The most important thing is maintaining a strong revenue stream and satisfying debt obligations. Despite your very best efforts, you may have found yourself facing an ever-increasing and hard-to-handle debt load. In such situations, considering filing and pursuing a bankruptcy may a wise decision. Generally, there are two bankruptcy choices for self-employed debtors. One is to file a Chapter 7 bankruptcy proceeding and the other is to file a Chapter 13 bankruptcy proceeding. A Chapter 7 proceeding happens when the debtor agrees to liquidate assets in order to pay off debts, while a Chapter 13 bankruptcy proceeding occurs where the debtor negotiates the payment of debts and does not liquidate assets to do so. Rather, the debtor will agree to a payment plan in order to pay off his or her creditors.
Chapter 7:
Chapter 7 bankruptcy is well suitable, if your current income is not sufficient to satisfy all your debts, even if you were provided a two- to five-year refund plan. A Chapter 7 bankruptcy allows you the ability to discharge or liquidate the vast majority of your debt. Pursuing this type of bankruptcy will let you to "start over with a fresh slate."
Before filing for a Chapter 7 bankruptcy, you are required to successfully complete a credit counseling program. Better converse with a clerk of the bankruptcy court in your area, they can provide you the information about approved credit counseling and education programs.
Chapter 13:
Prefer Chapter 13 bankruptcy if you really have the confidence that you will have an appropriate level of income to pay off the majority of your debts over two to five years. A Chapter 13 bankruptcy let the self-employed individual the ability to develop a repayment plan overseen by the bankruptcy court.
Chapter 13 bankruptcy is more preferable if you wish to continue in business, to carry forth in your current course of self employment. Through this bankruptcy proceedings, the vast majority of your creditors will receive payment for the debts owed to them by you. Consequently, most of these creditors are likely to be willing to do business with you into the future.
If you are a self-employed debtor pondering bankruptcy, it is wise to consult with an experienced bankruptcy attorney. An experienced bankruptcy attorney will review your case in order to guide you as to what legal options you may have in your particular state and what options serve your best interests and personal goals. In addition, the attorney will have a exhaustive understanding of the intricacies of the bankruptcy laws and be able to present your case in the most advantageous way.
