Filing for Bankruptcy, What you Should do to Prepare
In these tough economic times, filing for bankruptcy can become an inevitability for both businesses and individual entrepreneurs. While bankruptcy can seem like a nightmarish final option, it is sometimes the best choice. If you prepare yourself well for the bankruptcy process, it is less likely to turn into a nightmare. Taking steps to manage the process more smoothly will help decrease stress and anxiety that often comes with filing for bankruptcy. There are some solutions to help you become better prepared for the process of declaring bankruptcy.
Decide if Bankruptcy is Truly the Best Option
If you are in financial trouble, filing bankruptcy can be a legal way to protect yourself from creditors and avoid potential punishments such as serving time in jail, or having your property taken from you as collateral if you are unable to meet obligations to lenders. It is important to check with debt-management representatives first, and be under financial strain from creditors before bankruptcy becomes an option, since you can only file for bankruptcy every 6 years. Bankruptcy should be considered as a last resort, and only used in circumstances when there is no other better course of action.
Bankruptcy is unpleasant, but should not be considered as a failure. Instead, think of it as the right thing to do, and as another strategic business choice. Nobody is immune from needing to file for bankruptcy- it can happen to anyone in a bad economy and even in a good one. Even some of the largest businesses need to file for bankruptcy as a maintaining the health of their companies. American Airlines and many other companies have recently filed for bankruptcy, and many state and county governments have also been applying.
Hire an Expert
Even if you feel like spending is the last thing you want to do while declaring bankruptcy, it is best to hire a consultant or lawyer who can help you understand your situation and handle your bankruptcy claim. In many cases you may even be able to salvage a business after filing for bankruptcy, but if you are filing by yourself, you may not be able to navigate all of the loopholes, and you could also miss out on a chance to save some of your assets.
You certainly are able to file on your own, but if you try to do it without assistance, you may end up losing valuable time and assets. You should look for an experienced attorney in your state who is familiar with state and federal laws, has worked bankruptcy cases before, and who can help you through your process. Not only will this help speed the process along, but you will not have to worry about the stress of trying to learn an entire new system of meaning. Bankruptcy documents and directives are filled with language that is only used in very specific circumstances. Terms and phrases such as: liens, arrears, exemptions (as they relate specifically to bankruptcy), automatic stay, bankruptcy stay, codebtor, and many more, are completely unfamiliar to most citizens. Unless you have specific training in legal financials, you may not know what these words mean.
Part of the stress from dealing with bankruptcy often derives from feelings of hopelessness and immense pressures from outside sources. It will help you feel more in control of your situation if you educate yourself, at least minimally, about the bankruptcy process. This can be as easy as typing questions into Google, or as intricate as asking your attorney to borrow one of their books on the subject. You may also want to examine a glossary, or dictionary of bankruptcy terms so that you feel less confused when speaking with your attorney or reading over your legal documents. Knowing a little bit more can only help you advocate for yourself, smoothen discussions with your attorney, and feel prepared to approach the bankruptcy process.
Both individuals and company representatives can be struck hard by financial difficulty. However, being well-informed and taking gradual steps in preparation for the bankruptcy process can make the process more manageable. Filing for bankruptcy can be incredibly stressful, and taking action steps to help the process go more smoothly will help decrease anxiety, expedite the outcome, and help relieve the pressure you are likely feeling from creditors Making sure that you are ready for bankruptcy, thinking positively, informing yourself, and hiring an expert are all important steps to help you prepare yourself for bankruptcy.
This article was written by Lindsay Toy for Lima One Capital. When looking for Georgia hard money lenders be sure to contact the Lima One Capital for direct lending for real estate and homebuilding investment.