If your income is too high or have too many assets to file for Chapter 7 bankruptcy but are drowning in debt payments every month without any relief in sight, then filing for Chapter 13 bankruptcy protection is likely the best answer. When you file a Chapter 13 bankruptcy petition, you are asking the courts to put all of your debts into one big pot, and then you make one large monthly payment each month for up to five years.
If you have a small business and have too much debt, this can cause you to close very quickly. To help prevent this from happening, there are different types of business loans you can get to keep you afloat until your business becomes more successful. To help you get started, below are two types of business loans that will work well for this purpose.
Term Business Loan
A term business loan allows you to get a lump sum of money upfront.
Most bankruptcy cases travel smoothly and seamlessly through the process with nary a problem. There are, however, rules that every bankruptcy filer must know and follow if they want to rid themselves of debt in a complete and timely manner. Read to find out about a few reasons that your bankruptcy could end before you get a discharge of your debts.
Know the Rules
Having a bankruptcy attorney to advise you and keep you on on the right side of the law is important, but you must also do your part.
A house is not only an investment. For most people, a house is also a home. Even in times when you experience financial distress, you should not have to lose your home. Unfortunately, the loss of a job, an illness that prevents you from working, excessive medical bills, or an overwhelming amount of debt can all lead to financial distress that may increase the risk of you losing your house. Thankfully, help is available if you are facing foreclosure.
What happens to your debts while you're in jail? Some companies are willing to temporarily freeze your debt while you're in prison, while others are not. If you're going to be in jail or prison for a long time, you may want to consider dissolving your debts now. If you have a spouse (and they are also attached to these debts) this could also ease some of the financial burden on them.