Business Bankruptcy Lawyer: How to Know if You or Your Company Will Qualify for Bankruptcy
Written by Robert DeMarco
If you or your company is in financial trouble and need to know if bankruptcy will help, it’s crucial to understand the process. This article outlines what qualifies for bankruptcy protection, how Chapter 7 and Chapter 13 work, and when it may be appropriate to file.
What is Bankruptcy?
Bankruptcy is defined as a legal state that allows individuals or businesses with debts exceeding their assets to discharge some or all of these debts through the court system. Companies can file for either Chapter 7 or Chapter 13 bankruptcy, while individuals typically file for Chapter 7. Business owners and creditors concerned with business-related bankruptcies should contact a Business Bankruptcy Lawyer in Plano for more information.
How do Businesses Qualify for Business Bankruptcy?
To qualify for Bankruptcy in Plano, Businesses must pass what’s known as the “means test”. However, business owners filing for personal bankruptcy are subject to the means test if they have more than $360,475 in secured debt ($435,817 for joint filers) and unsecured debt of more than $722,525 ($974,575 for joint filers). Businesses with less than these amounts may qualify to file under Chapter 7. Businesses won’t be forced into filing for Business Bankruptcy Lawyer in Plano if they don’t pass the means test and can instead opt to file a Chapter 11 Business Bankruptcy Lawyer in Plano. This Business Bankruptcy Lawyer in Plano will allow the business to make monthly payments for three to five years while restructuring its debt and ultimately to pay creditors off over time.
Many factors will determine if you qualify for bankruptcy, nearly all financial. If filing in Plano is on your horizon, there is some advice from the experts about making yourself a better candidate, according to them!
Here’s how to qualify for bankruptcy:
Step 1: Stop paying your creditors once you have determined that the debts can’t come out in a way where all are paid off. If, however- and this may sound cruel but necessary at times- one creditor’s payment has been delayed until afterward so they can more easily digest what was owed them first. Before receiving any other payments from others who would like their money sooner rather than later, too, without feeling as if said individual owes everyone else just as much. Because of these last-minute adjustments made on behalf of every debtor since there isn’t enough time or opportunity given during Bankruptcy proceedings.
Step 2: It’s important to avoid taking on new debt before filing for bankruptcy, such as credit cards or loans. This can lead creditors all the way up in your plans of seeking a discharge, which might be seen as fraudulent since they were close enough to know about this if it is true!
Step 3: it is very important to stick with your regular financial routine when filing for bankruptcy. For example, don’t transfer titles or make large purchases because this could be viewed as fraudulent Transfer in court documents may ask why you are doing so.
It’s also wise not to attempt any sudden moves such as removing yourself from business partnerships before filling out forms related to Bankruptcy proceedings. This need to disclose all actions taken will impact how much money gets returned at the end!
Do I Have a Chance of Filing for Bankruptcy?
You may wonder which type of bankruptcy will be best for you. The first step in determining this is by taking the “Means Test,” which applies only to Chapter 7 and not 13 because repayment with income would put one into a good position for Chapter 13 but not Chapter 7
A tough bill can qualify as well if it’s impossible or hard-to-count on payments in the future. Still, an impossible situation now does not make sense financially speaking either way so consider both options carefully before deciding!
The Means Test is used to find if you qualify for bankruptcy, and it determines whether or not your financial situation meets the most critical criteria of eligibility. It’s an income test that compares average monthly earnings with those in other households around the Texas region to find out where they stand relative to one another. So this way, people can see if there are sufficient funds available should anything go wrong.
Filing for bankruptcy petition is an important decision and one that can have significant consequences on your life. Before filing, you need to know whether or not the means test will allow enough money for it to pass as qualifying income under chapter 7.
The Means Test is done to find out to qualify for Chapter 7 Bankruptcy, above all else. It is often heard that having a job will not disqualify you, and owning your home or car also won’t automatically make someone eligible. Many items can be exempt from Texas bankruptcy if they meet specific criteria regarding what it takes to file under The Code of Federal Regulations (SOX).
How To Qualify For Chapter 7 Bankruptcy?
If you are already in debt and looking for a way out, bankruptcy may be the answer. But it is not easy to qualify as specific requirements must be met before filing under Chapter 7, like meeting The Means Test, which decides whether or not your situation qualifies for relief under this chapter of law.
A person who files successfully will have eight years lapse between its date until they can receive another discharge again if applying through Chapter 13 reorganization proceedings. However, those seeking straight denials do so at any point while still holding onto current financial burdens.
The rules for filing a Chapter 7 bankruptcy are different depending on where you live in Texas. To see if your location qualifies, the court will consider how much income and assets come into play with debt repayments and whether there’s enough money left over after those obligations have been satisfied, so creditors don’t collect more than what is owed. This means making sure no one can take away any property from us except Mortgage lenders who may own lien rights against specific real estate properties. Still, we only pay off mortgages before other debts like credit cards or medical bills since they’re less critical when figuring out our financial future!
You have to complete a pre bankruptcy credit counseling course organized by an approved agency six months before filing. Once it is complete, you will receive your certificate that needs to be filed with the court as evidence of completion and availability for this required educational step to move forward during bankruptcy proceedings.
A debtor’s education program stresses good financial practices following any temporary setback such as Chapter 7 or 13 debt settlements that could be achieved for those considering this process. Acquiring specific skills to keep track of one’s own money or having solid plans for the future are both examples of lessons learned. Hence, it is always helpful to look at all viable options before jumping into something as serious as a bankruptcy. Especially since there are lots of good ways to get back on your feet financially so if you or your business qualify for Business Bankruptcy Lawyer, there are options!
How To Qualify For Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a good option for individuals who have been through an expensive and challenging process in Chapter 7 but are still struggling to get out from under debts. You won’t need the income needed with means-testing like chapter 11 does because you’re paying back your creditors over time through structured plans – this can lead to much shorter waiting periods between cases than if there were no repayment plan at all!
According to the Business Bankruptcy Law, you will come before the court for final approval of your repayment plans after making all agreed-upon payments as part of this process.
Since The Means Test is not required with Chapter 13 reorganization proceedings, you can receive a Business Bankruptcy Lawyer if your income falls within the median range for your state. Business Bankruptcy Lawyer is for people who have a steady income stream during your repayment period, either from personal earnings or business-related sources that can be used to pay off creditors in this plan.
Once you receive Business Bankruptcy Lawyer approval, you will make all payments according to the court-approved plan using what is left of your income or Business Bankruptcy Lawyer if you have to pay for it over time.
Business Bankruptcy Lawyer in Plano, TX
DeMarco Mitchell, PLLC helps businesses and individuals who are considering filing bankruptcy stay afloat by providing legal counsel in the area of business law. We, at DeMarco Mitchell have the best bankruptcy attorney in town, and have knowledge in all legal matters regarding your individual or business financial issue. Our experienced attorney can help you or your company determine if it’s time to file for Chapter 7 or 13 bankruptcy protection under federal law. To get started with our team on a free initial consultation, call us at (972) 578-1400 to reach out to our Plano, Texas, office today!
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