Business Bankruptcy: Frequently Asked Questions

What is the difference between chapter 7 and chapter 11 bankruptcy? Businesses usually have a couple of choices when it comes to filing bankruptcy. Chapter 7 bankruptcy is reserved for companies that are struggling so badly they want to throw in the towel. These companies are liquidated, and all assets (and proceeds from assets) are distributed between shareholders and creditors. Chapter 11, on the other hand, is filed when the company wishes to reorganize its debts and get a fresh start. Under this type of bankruptcy, the company is allowed to remain in business during the bankruptcy process. Read more here…

Are you on the Verge of Bankruptcy? 5 Warning Signs

Many people that consider filing bankruptcy make the mistake of waiting too long before seeking legal advice from a bankruptcy attorney. There are simple warning signs you can look out for. If you are experiencing more than one of these warning signs and have accumulated debt you cannot afford to repay, you may be on the verge of bankruptcy. You should seek the advice of an experienced bankruptcy attorney immediately. Here are 5 warning signs you may be on the verge of bankruptcy: 1. You are living paycheck to paycheck and you have no savings. If you are living from …

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Advantages and Disadvantages of a Short Sale

Living in a recession is difficult for most people, especially US homeowners that are living from one paycheck to the next. They often wonder how they will keep their mortgage payments current and prevent foreclosure of their property. Oftentimes, misinformed homeowners are led to believe that entering into a short sale agreement with regard to their home is their only option to prevent a foreclosure. What is a Short Sale? In a short sale, the mortgage company can agree to accept a negotiated amount – usually far less than the total amount owed – to satisfy a defaulted home or …

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Five Factors that Determine your Credit Score

You’re often reminded of how extremely important your credit (aka FICO) score is. Nowadays, your credit score can determine whether or not you purchase a home for your family, insure your vehicle or take a new job. Yes! That’s correct. Employers are checking the credit scores of potential employees as part of the hiring process. Today, it is more imperative than ever to maintain a competitive credit score. Despite the importance of having good credit, we’ve found that most people fail to understand exactly how their credit score is formulated. They don’t understand the method or formula that determines if …

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