Bankruptcy Consultants - Personal & Business
Bankruptcy consultation is a necessary service that is provided to thousands of individuals and businesses through the United States each year. More often than not this task is taken on by law firms who specialize in everything from debt reduction and asset management, to directly dealing with creditors or investors to settle claims and stop harassing phone calls. When looking for a service to assist you in what can be one of the most stressful and time consuming parts of your life you must first determine the nature of your bankruptcy.
The first type is chapter seven; this is the traditional liquidation style bankruptcy that is most often used by individuals and small businesses. In a chapter seven filing, the debtor works with creditors, the courts, and their representatives to produce maximum value for remaining assets. The revenue gained from the liquidation of assets is then distributed to creditors in a court mandated order. Following these proceedings the debt is most often dissolved and in the case of business the firm will cease to exist on public record.
The second type of bankruptcy is a chapter eleven filing. This is the method most often used by corporation or those with major investment holdings. In chapter eleven bankruptcies the large entity is allowed to maintain business operations while working with the courts, creditors and often large bankruptcy firms in an attempt to find a reasonable solution to dealing with the debt. In this type of bankruptcy, liquidation will often lead to loss for not only the debtor but the creditor as well. Re-organization is most often the best option in this case.
Finally there are some bankruptcies that are used on a case to case situation. Chapter twelve Is specifically for farm owners. Chapter thirteen is like chapter eleven but for individuals, and there are also stipulations for medical bankruptcies.
With knowledge of the bankruptcy types one can then step into deciding on the correct Consultation Company for their needs.
In the case of personal bankruptcy there are many consultation options including, online services, bankruptcy guides, and personal bankruptcy law firms. Each service will provide assistance in successfully completing your bankruptcy proceedings. Though, paid professionals are often best for taking the mystery out of the filing, while providing you with extremely valuable help to include:
1. Preparing accounts, assets, and financial paperwork for bankruptcy proceedings.
2. Determining if any assets can be retained within the scope of bankruptcy law.
3. Working with creditors to develop mutually beneficial terms and payment plans.
Most individuals with moderate to significant assets will find great value in using a consultation representative. Debtors with fewer assets may be better served using online guides, or local nonprofit debt councilors.
In the case of large corporate entities there is often the need for a large firm who has experience in all of the nuances of taking a company into and out of chapter eleven bankruptcies. These firms will work closely with management, the accounting department, and the regulatory boards to ensure a smooth transition. Their main focus being to keep a company within the constraints of the following filing, and operational procedures.
1. An agreement must be reached with priority creditors for re-payment of some or all of the
accrued debt.
2. A reorganization plan that is approved by regulators and creditors must be accepted.
3. The company must operate within the bounds of a pre-established plan.
4. The company must meet all deadlines put forward by creditors and regulatory commissions.
Maintaining compliance to strict policy is extremely difficult and time consuming for corporations. Without the expertise of a consultation company to guide them on the path many businesses would fail in their attempts at re-organization.
With this base understanding of bankruptcy proceedings and an acceptance of the intricacies of its processes, it is easy to see why thousands of individuals and corporations turn to consultation services to manage the fiscally painful process of bankruptcy.
