Already on ArticleSlash?

Forgot your password? Sign Up

Steps In Filing Bankruptcy - Bankruptcy Process Made Clear

 


Visitors: 205

Filling bankruptcy is not just the case with individuals under enormous debts. It so happens that several small and large corporations face the same problems many a time. These are difficult times for the company in question. There are issues regarding the employees and the investing agents as well. The steps in filing bankruptcy are made simple if there is a good lawyer representing the client to sort out the matter. Filing bankruptcy online is also a feasible option.

There are several separate steps in filing bankruptcy. About six months before the actual filing bankruptcy, the applicants must compulsorily undergo counselling for credit. The applicants also need to fill out forms and declare all their property. Second in the list of steps in filing bankruptcy is to check for chapter. It is decided by the federal organization if the applicant can opt for chapter 7 or 13 as per the policy. Next, means such as income and expenses are tested.

Individual owned property that does not come under any exemption is liquidized and equally partitioned among the claimants. Assets or possessions owned by the particular corporate entity are entrusted to a ‘trustee’ who liquidates them and distributes the money among all the creditors. Payments are also made to the investors of the corporation. The corporate entity is currently out of business and bankrupt. Hence, its normal operations are not permitted to be carried out.

In terms of steps in filing bankruptcy for corporations, the creditors come under the secured and unsecured categories. The former includes banks that have proper mortgage claims and are always given higher priority during payments.

The latter comes second in terms of priority and these have taken more risks than the secured creditor. However, the third category of investors (stock holders) has the last claim. They are ensured payment only if the first two investors have received theirs.

Filing bankruptcy costs vary for each step. The counselling is normally free or goes up to fifty dollars. They provide free means test. The ticket out is also charged nominally but court and attorney expenses and fees may go up to a few thousand dollars in all. Straight bankruptcy filings that come under the chapter 7 are usually more expensive and up front.

Debtips is the most comprehensive resource on Debt Consolidation Loan, Bankruptcy, Mortgage and Credit. It is just the right channel to make you finance literate and also helps in managing your personal finances. Visit Debtips and find all the information on

  • Debt Consolidation
  • Credit Report
  • Online Mortgage
  • Bad Credit
  • Bankruptcy is an unfortunate situation and can happen even to seasoned businessman or to a new entrepreneur. Learn all the Steps In Filing Bankruptcy from reliable resource.

    (472)

    Article Source:


     
    Rate this Article: 
     
    What You Must Know Before Filing Bankruptcy
    Rated 4 / 5
    based on 5 votes
    ArticleSlash

    Related Articles:

    Stop Bankruptcy Alternative to Filing Bankruptcy With the IVA Debt Solution

    by: Ben Harbour (June 18, 2008) 
    (Finance/Bankruptcy Tips Advice)

    The Advantages of Bankruptcy and Disadvantages of Filing Bankruptcy

    by: Alejandro Padua (February 06, 2012) 
    (Legal/Real Estate Law)

    Filing Bankruptcy Go it Alone Or Hire a Bankruptcy Lawyer?

    by: Charles Perez (July 12, 2008) 
    (Finance/Bankruptcy Personal)

    Simple Steps For Filing Bankruptcy Explained

    by: Robin Boddy (October 20, 2008) 
    (Finance/Bankruptcy)

    Steps to Follow in Filing Commercial Bankruptcy for a Business

    by: Tl Kleban (December 13, 2007) 
    (Finance/Bankruptcy)

    Bankruptcy Questions - What to Know Before Filing For Bankruptcy

    by: Benjamin Robert Ehinger (June 01, 2008) 
    (Finance/Bankruptcy)

    Filing Bankruptcy - Why You Should Avoid Filing Bankruptcy?

    by: Benjamin Robert Ehinger (June 15, 2008) 
    (Finance/Bankruptcy)

    Bankruptcy Laws What to Expect From Filing Under the Bankruptcy Laws

    by: Benjamin Robert Ehinger (July 20, 2008) 
    (Finance/Bankruptcy)

    Filing Personal Bankruptcy - When You Should Consider Filing

    by: Benjamin Robert Ehinger (August 13, 2008) 
    (Finance/Bankruptcy)

    What You Must Know Before Filing Bankruptcy

    by: Jon Arnold (February 11, 2007) 
    (Finance)