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Know the Important Do’s and Don’ts of Bankruptcy
TRI Writer • November 13, 2019
Are you struggling to pay your bills? Do you have debt that you cannot repay? If you are having difficulty covering the costs of your necessities and you are setting aside bills for “other” debt because you simply don’t have the income to pay everything, bankruptcy may be a good solution. Consider the following list so you can avoid common mistakes and make the most out of the legal protections offered by bankruptcy
if you do decide to file.
The Do’s of Bankruptcy:
- Seek Competent Legal Advice: Bankruptcy law is complex, and you want an experienced professional on your side. A Board Certified Consumer Bankruptcy Attorney has passed numerous exams, has vast experience, and has been recommended by the Bankruptcy Judge and other attorneys to be awarded the Specialist designation.
- Be Completely Honest with Your Attorney: Answer your attorney’s questions honestly, so they have a complete picture of your financial situation. If you withhold information, you limit your attorney’s ability to represent you effectively.
- Provide Your Attorney with All the Documentation Requested: Your attorney will tell you exactly what documents are necessary for your case to proceed smoothly. Take the time needed to collect them. It’s important.
- Carefully Read Your Bankruptcy Petition : Carefully review your bankruptcy petition for any inaccuracies before signing.
- Be Completely Honest and Forthright on Your Bankruptcy Petition: By signing your bankruptcy petition, you are stating that all the information included is true and accurate. Making false statements could result in your bankruptcy case being dismissed or even criminal prosecution.
- Complete Your Federal, and State Income Tax Returns: Tax return information is necessary for your attorney to represent you effectively. The bankruptcy trustee will also request the information. Failure to provide the documents could mean your debts will not be discharged.
The Don’ts of Bankruptcy:
- Don’t Worry About What People Will Think: Not being able to pay your debts is not a crime or a sign of failure. You have the right to seek relief from debt.
- Don’t Run Up Debts Right Before Bankruptcy: Incurring debt right before filing could result in debts not being discharged or cause the court to deny your bankruptcy completely.
- Don’t Try to Hide Property or Assets: The court could view hiding property or assets as bankruptcy fraud and my respond by dismissing your case, denying your discharge, etc.
- Don’t Borrow From Your 401k or Home Equity to Pay Off Credit Card Debt: Borrowing from retirement accounts could trigger unnecessary tax expenses and tapping a home equity line puts your home at risk.
- Don’t Increase Overtime Hours to Pay Off Debt: Increased hours on the job could disqualify you for Chapter 7 bankruptcy and negatively affect the calculations for your Chapter 13 bankruptcy repayment plan.
- Don’t Negotiate Debt Settlements with Creditors: Paying off a debt at a “settlement” price may trigger tax consequences.
If you are struggling to make your monthly payments or have to pick and choose which bills to pay each month, get in touch. Most bankruptcy offices in the Chattanooga area don’t have a single Consumer Bankruptcy Specialist on staff. Our office is the only office in Chattanooga with Two! They are Ken Rannick and Lou Ann Whaley. We help good people through bad times every day, and we can help you, too.
The post Know the Important Do’s and Don’ts of Bankruptcy appeared first on Kenneth C. Rannick, P.C..
Can I Keep My Car If I File for Chapter 7 Bankruptcy in Tennessee?
What Are My Options If I Am Drowning in Credit Card Debt in Tennessee?
What Are the Documents Required to Apply for Chapter 7 Bankruptcy in Tennessee?
What is the Difference Between Chapter 7 and Chapter 13 Bankruptcy in Tennessee?
Understanding Chapter 7 Bankruptcy Qualifications
Understanding the Role of the Trustee in Chapter 13 Bankruptcy
Understanding which Debts can be Discharged in Chapter 7 Bankruptcy
Protecting Your Assets in Chapter 7 Bankruptcy
Are you a Tennessee resident facing financial challenges and considering bankruptcy? If so, you may have heard about a relatively new option called Subchapter 5 bankruptcy. But what exactly is Subchapter 5 and how does it differ from traditional Chapter 11 bankruptcy? More importantly, what benefits does it offer to individuals and small businesses? In this blog post, we will explore the world of Subchapter 5 bankruptcy and shed light on its advantages for Tennessee residents. Whether you're a struggling entrepreneur or an individual burdened by overwhelming debt, understanding the potential benefits of Subchapter 5 can help you make informed decisions about your financial future. What is Subchapter 5 Bankruptcy? Subchapter 5 is a relatively recent addition to the United States Bankruptcy Code, specifically designed to provide a streamlined and cost-effective bankruptcy process for small businesses and individuals. It was created as part of the Small Business Reorganization Act (SBRA) in 2019, with the aim of increasing accessibility to Chapter 11 bankruptcy relief. The Benefits of Subchapter 5 Bankruptcy Simplified Process: One of the key advantages of Subchapter 5 is its simplified and faster bankruptcy process. Unlike traditional Chapter 11 bankruptcy, which can be complex and costly, Subchapter 5 offers a more streamlined approach that is better suited for small businesses and individuals. Retention of Ownership: Under Subchapter 5, business owners have the opportunity to retain ownership and control of their company while developing a repayment plan. This allows for greater flexibility and the ability to restructure debts without losing ownership interests. Reduced Plan Requirements: Subchapter 5 eliminates certain stringent plan requirements that are typically associated with traditional Chapter 11 bankruptcy. This simplification of the plan process makes it more accessible to small businesses and individuals. Debt Repayment Plan: Subchapter 5 allows for the development of a debt repayment plan based on the individual's or small business's disposable income. This plan spans over three to five years, making it more manageable and achievable for debtors. Creditor-Friendly Approach: Subchapter 5 encourages creditor participation and collaboration, promoting consensual resolutions and a more amicable environment. This can lead to increased cooperation, reduced litigation costs, and ultimately, a more successful restructuring process. Subchapter 5 vs. Chapter 11 Bankruptcy: Understanding the Difference While both Subchapter 5 bankruptcy and traditional Chapter 11 bankruptcy share some similarities, there are significant differences between the two. The primary distinction lies in the complexity, cost, and requirements associated with each option. Subchapter 5 offers a more simplified and accessible bankruptcy process specifically tailored to the needs of small businesses and individuals, while Chapter 11 is better suited for larger businesses with more complex financial structures. If you're a Tennessee resident grappling with financial difficulties, Subchapter 5 bankruptcy may provide a viable solution. Its streamlined process, reduced plan requirements, and debtor-friendly approach make it an attractive option for small businesses and individuals seeking relief from overwhelming debt. Before making any decisions, it's essential to consult with a qualified bankruptcy attorney who can guide you through the process and help determine the best course of action for your specific situation. Remember, bankruptcy is not a one-size-fits-all solution, and the outcome will depend on various factors. However, understanding the potential benefits of Subchapter 5 bankruptcy can empower you to make informed decisions about your financial future. At Kenneth C. Rannick, P.C., we specialize in bankruptcy law and can provide the guidance and support you need during challenging times. Contact us today to schedule a consultation and explore your options for a fresh start. Take control of your financial future with Subchapter 5 bankruptcy. Let us help you navigate the path to a brighter tomorrow.
Filing for bankruptcy can be a scary and confusing decision, but it is a necessary step for individuals and businesses who are struggling with their finances. In Minnesota, one of the most common types of bankruptcy is Chapter 11 bankruptcy, which allows a business to reorganize its debts and continue operating while paying off its creditors. If you're considering Chapter 11 bankruptcy, it's important to understand how it works and what benefits it can offer. In this post, we'll delve into the process of filing for Chapter 11 bankruptcy, highlight its advantages, and discuss how you can get started. 1. Understanding Chapter 11 Bankruptcy Chapter 11 bankruptcy is a form of bankruptcy that allows businesses to reorganize their debts while continuing to operate. The goal of this process is to give businesses a chance to become profitable again by restructuring their debt payments. During Chapter 11 bankruptcy, a business is protected from creditors by an automatic stay that prevents them from pursuing collection activities. The debtor then works with a bankruptcy court and creditors to create a repayment plan that will allow them to pay off their debts over time. 2. Benefits of Chapter 11 Bankruptcy There are several benefits to filing for Chapter 11 bankruptcy. One of the primary benefits is that it allows the debtor to maintain control of their business operations while repaying their debts. This means that the debtor can continue to generate revenue and will not be forced to liquidate their assets to pay off their creditors. Additionally, Chapter 11 bankruptcy can give the debtor more time to negotiate with their creditors and reach a repayment agreement that is more favorable to them. 3. How to File for Chapter 11 Bankruptcy Filing for Chapter 11 bankruptcy can be a complex and time-consuming process, but it is possible with the help of a knowledgeable bankruptcy attorney. The first step is to file a petition with the bankruptcy court, which will initiate the automatic stay and prevent creditors from taking any further collection actions. Next, the debtor will need to provide the court with a comprehensive list of their assets, liabilities, and creditors. From there, the debtor will work with their attorney to create a repayment plan that is feasible and fair to all parties involved. 4. Working with a Bankruptcy Attorney Filing for Chapter 11 bankruptcy can be an overwhelming process, and it is important to work with a qualified bankruptcy attorney who can guide you through the process. A bankruptcy attorney can help you prepare and file the necessary paperwork, negotiate with creditors on your behalf, and create a repayment plan that is tailored to your unique financial situation. Additionally, an attorney can give you advice on how to protect your assets and maintain control of your business operations during the bankruptcy process. Filing for Chapter 11 bankruptcy can be a complicated and stressful process, but it can also be a valuable tool for businesses that are struggling with their finances. By reorganizing their debts and negotiating with creditors, businesses can get a fresh start and work towards profitability once again. If you're considering filing for Chapter 11 bankruptcy in Minnesota, it's important to work with a qualified attorney who can guide you through the process and help you achieve the best outcome.
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*$0 down to get your Chapter 7 case started applies to clients who choose to file a Chapter 7 bankruptcy with the U.S. Bankruptcy Court through Kenneth C. Rannick, P.C. We will open a Chapter 7 file for a client with as little as $0 down, however, our office will not file a client's Chapter 7 without an affordable down payment on attorney fees.
*$0 down to get your Chapter 13 case started applies to clients who choose to file a Chapter 13 bankruptcy with the U.S. Bankruptcy Court through Kenneth C. Rannick, P.C. Our law office will file a Chapter 13 without requiring any costs or attorney fees paid upfront for qualified clients who 1) have not had a prior chapter 13 dismissed within the past year, and 2) are not trying to stop a foreclosure within 20 days of filling bankruptcy.We are a debt relief agency.
We help people file for bankruptcy relief under the Bankruptcy Code.
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