Call bankruptcy lawyer in Tempe to know the difference of businesses and personal filing process
The financial issue may arise in your personal or corporate life. We try to find out the best option to solve this problem. When you have approached an attorney, he may ask you to file the bankruptcy. Thus, for both businesses and personal issues, bankruptcy filing is the right solution. However, we do not know how the personal bankruptcy differs from the corporate one. Although there are similarities between them. Bankruptcy attorney in Mesa AZ will help you to find the difference.
Filing the bankruptcy for personal issues-
You are only liable for the increasing debts in your life. In that case, you have to make your own decision in filing the bankruptcy. All your liabilities and assets have to be personal. For assigning yourself to bankruptcy voluntarily, you have to speak to the Licensed Insolvency Trustee. This Trustee has the responsibility for managing your asset repurchase process.
Bankruptcy at the corporate level-
While you have a commercial entity and a partnership, you can think of filing for bankruptcy. For your failure in paying the debts, you have to choose this option. This bankruptcy filing process can be slightly different.
Any corporation is the legal entity. As the company director, you have personal liabilities for your corporations’ debts.
Choice of the right Chapter-
While it is a personal bankruptcy, you have to file it under Chapter 7. When there is no chance to repay the debt, you may choose this option. The low-income persons rely on this Chapter. The debt discharge is the ultimate result of the filing process.
For your personal bankruptcy, Chapter 13 is another option for you. While you have some ability of managing the debt, this is the right choice to you. However, to increase your chance of winning the case, you can hire Bankruptcy attorney in Mesa AZ.
Corporate Bankruptcy Filing – Chapter 7 or 11- Which is better?
As one of the corporate owners with debts, you may choose Chapter 7 for filing the bankruptcy case. However, the outcome of this process can be the closure of your entity. There is no chance of reorganization.
You may also choose Chapter 11 to file for bankruptcy for your corporation. You have an option for liquidating your assets for the debt repayment. However, can reorganize your entity. In most cases, a reorganization is the common result from Chapter 11 bankruptcy filing. At first, the debtors may propose the scheme. The creditors will rely on the voting process for the approval of your chosen scheme.
Chapter 11 is also applicable for the personal bankruptcy. However, this is slightly more intricate than other Chapters. Thus, you can hire the bankruptcy lawyer in Tempe to choose the better Chapter for filing the case.
The attorney has good knowledge to help you in business and personal bankruptcy. The major difference between these processes lies in means test. You must take part in the test to know your eligibility for Chapter 7, 11 or 13. However, the corporate entities have no obligation for proving for filing under Chapter 11.
The corporate units may cancel the deals with their lenders for any reason. However, for the personal cases, you will not have this facility for the debt on student loans.
It is not easy to find the details of all the Chapters, related to bankruptcy. Thus, you can speak to your reliable bankruptcy lawyer in Tempe. The attorneys have undergone training on the field of bankruptcy law.
Resource Box
A Bankruptcy lawyer Tempe will simplify the filing process for you. The laws are not stable all the time. To know about business and personal bankruptcy, you can hire a Bankruptcy attorney Mesa AZ .
Processing your request, Please wait....
