Like many people, the recession hit me pretty hard. Thanks to a job loss, I got behind on some of my credit cards. Even though I did mange to make the mortgage payment every month, my credit rating nose-dived. While things did get better, I still wondered if it would be possible to refinance my mortgage with bad credit. After talking with a few lenders, I found out that my situation was not unique. I also found lenders who were willing to work with me. I managed to get terms that will save me money over the life of that mortgage. If your credit has taken a beating, don't assume that refinancing is out of the question. I'll share how I researched options and found a lender who offered a good deal. You could find that refinancing your mortgage is within your reach.
A commercial bankruptcy occurs when a business is struggling with debt and is not able to succeed with their current debt schedule. Like a personal bankruptcy, a commercial bankruptcy can eliminate debt, or the debt can be restructured for the business to have a better chance of paying it back. In chapter 7 bankruptcy, the business is dissolved and assets are liquidated. This is a clean break from creditors when a business fails. A chapter 11 bankruptcy is also an option, and this is used when a business wants to remain a company but needs debt restructured in a more realistic payment plan. If your business is having a hard time with mounting debt, commercial bankruptcy services can help.
How Commercial Bankruptcy Is Different Than Personal Bankruptcy
An individual or couple that wants to file a bankruptcy to reduce or eliminate debt goes through a means test to decide whether they can file a chapter 7 or need to file a chapter 13 bankruptcy. Businesses do not have to go through this means test in order to file a chapter 11 bankruptcy and restructure their debt. In a personal bankruptcy, the filer can't release student loan debt or other exempt debt, while a business can cancel a contract if it is mutually beneficial. Businesses have more leeway when it comes to getting rid of bad debt.
Asset Liquidation and a Chapter 11 Bankruptcy
While the business that owes a debt to creditors can develop a plan to address how they are going to liquidate assets and pay back creditors, this plan has to get the approval of creditors. If the business delays coming up with a liquidation plan, creditors are able to submit their own plan on what they think should happen. Creditors are the ones that get to make the final decision on what plan is accepted or not. This puts pressure on the business going through bankruptcy to be as fair as possible to all creditors in an effort to get their proposed plan accepted. Once you restructure your business and your creditors are taken care of, you can move forward with your business.
If you are having financial problems while running your business, you have options. talk with commercial bankruptcy services from a firm like Molleur Law Office to learn more about the different types of bankruptcy you can file. From a full dissolution of your business to a strategic restructuring, help is available when money is a problem.
Share15 March 2019
