Not
ready to close your business? Proven steps for turning failing
business around.
Some business owners feel as though they are against a wall with
debt and contractual obligations. They are exhausted. Their leases,
loans, and contracts pile up, while their money dwindles. Their
business is ruling their life and they just want to get out.
As a frustrated business owner, you may find yourself in this
situation. You may have tried to turnaround your failing company
with little success. And if you have no buyer on the horizon, you
may have decided you've had enough. It's time to close your doors.
But how do you go about doing this? You will find rows of books
at your local bookstore that cover how to start a business, but
little on how to close one. How will you meet the obligations of
your loans and lease? Do you owe money to the IRS, individual agencies,
or contract workers?
There are many items to consider when you close a business. And
you have some choices to make when it comes to getting rid of debt
and folding your company. Let me explain.
Straight
talk about business bankruptcy and closure
The Last Debt Solution Should Be Bankruptcy A debt solution like bankruptcy should really only be used as a last possible solution. The problem with this solution of debt problems is that it includes a lot more than simply eliminating debt. When someone declares them self bankrupted, all debt collection actions against that person are prevented. The court grants an "automatic stay", which - with a few exceptions means that creditors cannot come after the money owed to them.
The most important exception is that when a loan is secured by property creditors can seek relief from the stay and seize that property. The other exceptions are student loan debt, alimony, child support and taxes. The backside for the person who seeks this solution to eliminate his debt is that he or she must hand over all non-exempt property. This property is then sold and the proceeds are distributed amongst the creditors.
There are two types of this solution of your debt problems:.
Chapter 7
which states that a person is required to hand over much of their property, but creditors cannot seek damages from further income.
Chapter 13
allows a person to keep most of their income, but have to make a plan to pay the debt back to creditors based on their future income. Under this plan, the court can require individuals to live within a very strict budget.
As you see, there are downsides to both debt elimination plans. One of the biggest downside is that both debt erase plans will significantly impact a person's credit rate. For this reason, declaring yourself bankrupt is a solution of your debt problems that should be evaluated very thoroughly and carefully. Other debt solutions like debt negotiation, debt counselling and debt consolidation should definitely be considered first.
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Straight
talk about business bankruptcy and closure
Stop Foreclosure - 7 Tips to Save Your Home
Faced with the threat of a foreclosure on their home, with all the weight of the mortgage industry and its army of attorneys against them, the average homeowner might feel like David facing Goliath.But David defeated Goliath !David had a sling and some pebbles.You have an armory of tactics and options which can enable you to stop foreclosure proceedings in their tracks. There are certain basic rules to follow if you want to stop foreclosure on your home.*** Do not leave your home. If you do, you may lose your eligibility for assistance.*** Do not speak to the lender's Collection department,. . .
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