Business owners have it tough, especially in the current global economic crisis. Since financial trends are so dynamic, many businesses have to pack up and leave their operation after only a short while of bringing their store to the market. If a person is struggling with their business, they may want to consider filing for bankruptcy.
Bankruptcy is the legal process in which a person states they are unable to pay their debt due to their business not performing as well as they expected. The debtor must file a petition and their assets will be measured and used to pay a portion of their debts. Business owners should consider taking this route when they can see their financial situation is not getting any better. If a business owner notices that the balance on their debts refuses to go down since they are only giving minimal payments, filing for bankruptcy can help remove those debts so they can have a new start.
If a person experiences a threat of foreclosure or repossession of their home or vehicle they may also want to file for bankruptcy as this can help them avoid legal trouble and allow them to keep their home.
Is court required when filing for bankruptcy in Jacksonville, Florida?
If a person attempts to file for bankruptcy, they will have to go to court and that is why it is vital to have a bankruptcy lawyer on one’s case right from the beginning. An attorney can help a person present their case in a way that convinces the court that they needed to make this financial decision.
A bankruptcy trustee will overlook the court proceedings and ask questions regarding the paperwork and financial situation of the applicant. After the initial session, a person may not need to return to court again. However, if a motion is filed again them then they will be required to make another appearance.
As soon as a person’s application is accepted, collectors will no longer be allowed to act against a person. A person can file for bankruptcy whenever they feel the need, but there are certain time limits they have to follow when considering filing a consecutive bankruptcy claim. It is very important to note that though creditors may no longer be allowed to take financial action against a person after they apply for bankruptcy, their child support obligations and back taxes will not be eliminated.
Filing for bankruptcy can give a person’s credit score a significant blow and can create other limitations in a person’s life, but in many cases, it is the only way for a person to secure their finances.
Connect with a bankruptcy attorney at Gahanian Law as soon as possible to learn more about the application process.
Reach us at:
Jacksonville, FL Locations
3840-1 Williamsburg Park Blvd, Jacksonville, FL 32257
8596 Arlington Expy, Jacksonville, FL 32211