For any business that is in debt and an owner that is considering bankruptcy, they might be expecting an easy and self-explanatory process. However, there are some aspects that a business owner might not have thought about when entering the bankruptcy process. By gaining an understanding of a few aspects that sometimes pop up in the bankruptcy process, a business will be able to move forward into a life without debt.
Things You Should Know About the Process
Not an In and Out Process: Many people think that the bankruptcy process is an easy one that will not take a lot of time. However, if you are filing any type of business bankruptcy, such as Chapter 7, you could find that the process lasts anywhere from four to six months. If you go with Chapter 11 or 13, you could find that the process lasts even longer. You should be prepared for the process to last a few months and involve complex issues at times. Anything can pop up along the way, which is why it is essential to have an experienced attorney on your side.
Public Scrutiny: If you are going to be going through the bankruptcy process, you better be prepared for the public to know information about your financial situation. You will be dealing with paperwork known as bankruptcy schedules, which includes information like your business income, financial transactions you have made, income, and more. When you attend the meeting of creditors, your information will be put out there and you will have to answer personal questions about your finances.
Complicated Forms: Many people are not prepared for the amount of attention that you will have to provide on bankruptcy forms. Bankruptcy forms might be long and difficult to understand like tax returns. There might even be trick questions about your finances that you don’t know how to answer, which is why you should never handle them alone. An experienced attorney will be able to help you understand what is being asked of you so that all of the questions are answered to the best of your ability.
Sometimes Expensive Process: Bankruptcy is not a cheap process, either, and can end up costing a significant amount of money that you were not prepared for. To find the best route and save money, having an attorney can sometimes help. Retaining a bankruptcy attorney can cost thousands of dollars but can save you in the long run when no mistakes are made in your case. From filing fees to the cost of gas as you run from place to place to ensure that everything is filed and handled properly, the costs will add up.
Impact on Your Credit: It can take over two years for somebody’s credit to stop being impacted harshly by a bankruptcy. Many creditors will look at your file with scrutiny because of your bankruptcy, as they might not be as inclined to give their trust when you are filing for a loan or making other financial decisions. You will have to work at it and start small as you evolve over time once more.
How a Bankruptcy Attorney Can Help
At MJ Watson & Associates, our experienced Texas bankruptcy attorneys will assist you through every step of the bankruptcy process when you are feeling lost and confused about your case. Running a business can be a difficult prospect and you might be facing the harsh reality that you will have to file Chapter 7 bankruptcy or some other form of business bankruptcy to get back on your feet. Please contact us for more information at 817-877-2861.