Procedure in Filling for Bankruptcy
Bankruptcy is, in most cases, filed by people with overwhelming financial burdens. Before filing for any form of bankruptcy, it is advisable to consult a bankruptcy attorney to represent you in court and help you with all the legal formalities involved in filing for bankruptcy. Many people frequently make unwise financial decisions which leave them pennyless or with heavy financial burdens. Prince Georges County MD chapter 11 bankruptcy is the most common form of bankruptcy used by business owners in a bad financial situation to protect their businesses.
Filing for Chapter 11 bankruptcy protects the debtor against the creditors as he/she works out a repayment plan or reorganizes the business. The process of filing for bankruptcy is usually very complex and time consuming, that is why it is extremely important to file for bankruptcy only under the guidance of a bankruptcy lawyer. During this period the business is usually restructured under the supervision of the court. The director of the company or the business owner is expected to table a debt recovery plan before his/her creditors indicating how the debt is going to be settled and within a certain time frame.
If creditors agree with the repayment plan, it is then submitted to court for approval. A petition to close Chapter 11 bankruptcy application can later be filed if the debtor repays what he/she is owed and the business recovers. Although filing for bankruptcy might seem an easy way out of a difficult financial situation, there are other effective debt settlement options such as debt litigation, debt negotiation, section 363 and many others. Depending on your financial situation, a bankruptcy attorney will recommend to you the best option which will not affect your credit score.
A company can also decide to sell its assets and use the money to repay its debts. For more information on Prince Georges County MD chapter 11 bankruptcy, visit any bankruptcy lawyer in the area. Bankruptcy lawyers in Georges County provide affordable and quality services to all their clients. They usually offer free initial consultation services to help business owners make the right decision.
A company can also decide to sell its assets and use the money to repay its debts. For more information on Prince Georges County MD chapter 11 bankruptcy, visit Laura Margulies & Associates LLC.