Posted on June 10, 2021 in Bankruptcy

A variety of circumstances may lead to someone being encumbered in debt, such as an unexpected medical procedure or job loss. You may find it relatively easy to tackle a few of your smaller bills but struggle to pay off the other, larger ones.

Your creditors will generally try to reach you by phone and mail with notices. They may eventually seek out the assistance of a debt collection agency to attempt to collect your debt if in-house efforts fail. Your creditor may turn to a collections attorney as a last resort. Your creditor’s attorney may then file a lawsuit against you. If they’re successful in doing so or you fail to respond, then the court may enter a judgment in your case.

A judgment may give your creditor an option for garnishing your wages, repossessing your assets, placing a lien on property or tapping into your bank account. You may wonder what rights you have aside from filing bankruptcy.

What should you do if a creditor secures a judgment against you?

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 Posted on April 12, 2021 in Bankruptcy

Running a restaurant has its good times and bad. In the last year or so, the economy has been struggling. For many restaurant owners, this has meant an immense amount of financial pressure.

As a small business owner, you may be interested in finding out more about what you can do to get out of debt and if bankruptcy could be beneficial to you as you wait for the economy to recover. The good news is that there may be options to help.

To start with, there are two main kinds of bankruptcy that small business owners use. These are Chapter 7 bankruptcy and Chapter 11 bankruptcy. Chapter 7 is liquidation-based, meaning that the business will close its doors. Chapter 11 is a type of reorganization bankruptcy, which allows businesses the time needed to restructure and find a way to become profitable despite a heavy debt load or low profits.

Which kind of bankruptcy is right for your business?

The type of bankruptcy you want for your business will vary based on your goals. Do you want to stay open or are you willing to shut your doors? If you want to close your restaurant and walk away, then Chapter 7 bankruptcy may be a good option. It gives you the opportunity to liquidate your business assets and to have the remaining debts discharged.

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