A business that is suffering from financial problems, should seek the assistance of a Business Bankruptcy Attorney Topeka KS. Personal bankruptcy is similar to a business bankruptcy. The biggest difference is a business will not have to participate in the means test if they file for Chapter 11 bankruptcy. Another benefit a business has with filing bankruptcy is they have the ability to cancel contracts with a creditor when it’s favorable financially for the business and creditor. Individuals that are filing personal bankruptcy do not have that option. The easiest way for a business or individual to determine if bankruptcy is a good choice them is to contact a bankruptcy attorney.
There are four types of bankruptcy that can be filed in Kansas. Chapter 7 is commonly known as a liquidation bankruptcy. Someone who’s in debt will have to give up their property that exceeds the exemptions. All of the debtor’s property will be sold that isn’t exempt. Chapter 11 bankruptcy is considered a reorganization. It is used by businesses and sometimes individual debtors. When Chapter 11 is filed, the debtor usually has very large debts. Family farmers can use Chapter 12 bankruptcy. Chapter 13 bankruptcy offers a debt adjustment plan. When this type of bankruptcy is approved, it requires the debtor to make payments on the part of the debt based on their current income.
Only a business bankruptcy attorney in Topeka KS can determine what type of bankruptcy should be filed based off the circumstances and the income of the business or individual. Chapter 13 bankruptcy is a great option whenever a business is behind on their payments. This permits a business to reorganize their debt into more manageable payments while retaining their assets. Once the payments have been completed, the remaining debt will be dismissed by the bankruptcy court. A debtor will have to determine if they want to use the state or federal bankruptcy exemptions when they file for bankruptcy.
Some individuals will have to receive credit counseling in order for their bankruptcy to be approved. If you or your business are swimming in debt, Contact John Hooge Law Office. They’ve been representing clients through the bankruptcy process for many years and can help you determine what the right financial option is.
