I didn’t mean for my debt to get out of control. It happened so gradually that I barely noticed it at first, and by the time I understood what was happening to my finances, it was too late to do anything to stop it. I was trying to start a small business, and I thought that I had enough of a cushion to fall back on. I was wrong.
The smartest move that I made was hiring a bankruptcy attorney to help me file for bankruptcy and get out of debt. He really helped me. He made sure that I filed the right bankruptcy chapter and completed all of the correct paperwork, and helped me find credit couseling courses so that I could get back on the right track and stay out of debt. This blog about bankruptcy is meant to help others that find themselves in the same situation.
What Is A Chapter 13 Small Business Bankruptcy In Nebraska Filing?
17 January 2014
As a small business owner, you sometimes have to make tough decisions. If you are in a financial bind, filing for small business bankruptcy in Nebraska could be one of those decisions. If you are interested in keeping your business, filing for a Chapter 13 might be your best bet. The bankruptcy would allow you a chance to reorganize your debts, pay off your creditors, and potentially save your business. An attorney can help you decide if this is the best decision for you and your business.
When you file a Chapter 13 small business bankruptcy in Nebraska, you are allowed to keep your assets. A trustee will review your debts and ensure that those submitted by creditors are legitimate. Once the legitimacy of the debts is determined, a repayment plan will be made. You could be granted up to five years to pay off your debts. Instead of worrying about paying each creditor individually each month, you make one payment to the trustee. The trustee will take the funds and disperse them accordingly to each creditor.
The amount that you are ordered to pay back by the court on behalf of your business depends largely on the amount of income your business can generate and the debts that it has incurred. The business's monthly expenses also has an impact on this. The more income that your business is able to generate each month, the higher you can expect your payments to be under the repayment plan. The trustee will ensure that those debts which are considered to be priority are paid off before your other debts. Priority debts are typically those concerning taxes.
You can file for a Chapter 13 small business bankruptcy in Nebraska if your business is considered to be a sole proprietorship. There some partnerships that meet the qualifications to file a Chapter 13. The filing must be in the name of the owner of the business. If you own a limited liability company or corporation, you will have to explore other filing options such as a Chapter 7 filing.
When you file for a Chapter 13 bankruptcy, both your personal and business debts are considered. You must be the one that is liable for the debts to include your business debts. An attorney will help you to determine which expenses can be included in your filing. At the end of your repayment period, debts that have not been paid that are unsecured, are usually discharged by the court. In other words, you are no longer responsible for paying them.
There are several benefits to filing for a small business bankruptcy in Nebraska of which you can take advantage. One of those is that you get the chance to pay off those debts which are considered priority. Priority debts are usually those that are not going away regardless of what actions are taken by the court. They can follow you the rest of your life. However, through the repayment plan, you can pay off those debts in the beginning and not have to worry about them again.
You also have the option of keeping your business's assets. In a Chapter 7 bankruptcy, you would be forced to liquidate your business's assets so that you could pay back your creditors. In a Chapter 13, if you plan to keep your business going, you can keep your assets and use them to operate your business.
There is also the possibility that, with the help of a lawyer like John Turco chapter 13 attorney, you can lower the amount that you owe your creditors on certain debts. Some secured loans may be renegotiated to offer you a lower amount due. Some debtors may even be willing to drop the interest as long as you pay the interest on a loan. Share