Declaring your bankruptcy in your home business has effects on other areas of your life. Why and when is declaring bankruptcy the right thing to do?
The answer as to why is easy; because one is drowning in debt and needs protection to keep the creditors at bay and buy some time to regroup. As to when, the answer is much the same; when one is drowning in debt.
Schwartz, Flansburg, a leading bankruptcy lawyers Las Vegas firm, guides us into the effects of declaring bankruptcy in your home business.
However bankruptcy has some repercussions that should be taken into account before taking that drastic step. Some of the repercussions are predicable while others are not.
Getting into more debt is not a good idea, and therefore going for a loan may not be the first step one takes when bankrupt. However long after your bankruptcy has been lifted one may still find it hard to access credit at the bank because of a low credit score. Alternatively the credit accessible to you maybe very expensive.
What kind of debt do you have? You should know that child support cheques will still be due and so will your taxes. There are some kinds of debt and obligations that you cannot hide from by declaring bankruptcy. Any money you make will first be paid to your obligations like tax and child support, then to the creditors.
Your personal items that constitute basic human needs will be safe, therefore you should be allowed to keep your home. But a second house or holiday home and a flashy sports car cannot be tolerated. All items that are not basic human needs that are in your name will be attached to recover the debt owed.
Bankruptcy can also endanger the lives of your family and other associates, not to mention your own. This is because by not paying your debts, you are endangering the livelihoods of the dependents of the entities that you owe. Their companies and businesses are also in danger of collapsing under the weight of your debt not to mention they too probably owe money to other people. By not paying, you set off a vicious circle of debt that could end in your harm.
Finally, bankruptcy is seen as a sign of defeat, it is embarrassing and it becomes a nightmare to face your peers.
How To Go About Declaring Bankruptcy
When pushed to the wall by debt that will not go, one is often left with no option other than bankruptcy, a move that offers legal protection from creditors.
Since the legal requirements and the documentation required when declaring bankruptcy may be too much for a lay man, the first step is to identify a good bankruptcy attorney.
The attorney will help you determine if bankruptcy is in fact the prudent thing to do. The attorney may point out other options available. This is after he has gone through your books and determined what he is dealing with.
Once it is determined that bankruptcy is the way forward, the attorney will help with the actual court process of filling the forms, paying for the court and filing the bankruptcy. Seems ironic and callous to make one declaring bankruptcy to have to pay for it.