Can All Debts Be Discharged in Bankruptcy?

FAQ Personal and Corporate Bankruptcy

In bankruptcy, a discharge is a term used to describe a debt that doesn’t have to be repaid. But not all debts are dischargeable. Those that are include: business loans, unpaid rent and credit card expenses. Debts that cannot be discharged include: some taxes, salaries owed to employees, penalties and fines that have been imposed on the company by the government. It’s also important to note that personal expenses cannot be discharged in a business bankruptcy; only debts incurred on behalf of your company. More Questions about Bankruptcy? We have answers! Contact our bankruptcy team to discuss all options available …

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How Will Business Bankruptcy Affect Me?

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Whether or not you suffer personally from filing bankruptcy to protect your business depends on the chapter you file. If you file chapter 7, you (and the shareholders of your corporation) can lose your stock values if shares are liquidated with the corporation’s assets. If you file chapter 13, the shares of the corporation will be protected. Instead of liquidating, you’ll enter into an agreement to repay your creditors, and keep your business open during that time. Which bankruptcy is right for your business?  Chapter 13 bankruptcy is not an ideal solution for every business. If you have personally guaranteed …

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What is a Debt Charge Off?

A charge off is an accounting entry used by creditors or lenders in their books to account for overdue, uncollected debts. Most debtors, when they see “charged off” on their credit report, assume the debt has been disregarded by the creditor and that they are no longer obliged to repay the debt. This is not correct. In fact, in many instances when one creditor charges off a problematic account, a third party purchases the bad debt and commence efforts to secure payment of the debt from the debtor. A charge off will appear on the debtor’s credit report for years. …

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