Business Going Bankrupt? How to Prepare for the Worst and Hope for the Best

Thursday, August 31, 2017, 6:00 AM | Leave Comment

There is a solution to years of dealing with constant bills and a failing income.

Filing for bankruptcy gives you a new start, but it affects your credit and future ability to receive loans. Know the complications involved before you jump into the process.

Review a few major steps that are involved in the work of filing for bankruptcy.

Business Going Bankrupt - How to Prepare for the Worst and Hope for the Best

  • Review Credit Reports

    Like everyone, you assume that you know all of your debts. The problem is that you may assume the best and deny the existence of certain debts. A credit report is the only accurate record of the debts you owe.

    There are times when discrepancies are found in this report, but most of the information is accurate.

    Before you file for bankruptcy, retrieve your copies from the three main credit report bureaus.

  • Compare Debts with Assets

    Get an official record of your debts from credit reports and then get a record of your assets from bank statements.

    Only work with the most recent documents, and include information about pending lawsuits, stocks and investments.

    Last, make a chart that compares all debts with assets. It’s important to face the reality of your situation before you consider bankruptcy.

  • Compile Tax Returns

    You need tax returns to file along with the bankruptcy papers. Retrieve old copies from the IRS either online or through the mail. Request transcripts if you don’t have the original copies.

  • Consider Alternatives

    Filing for bankruptcy is a complicated process that may require the help of a lawyer. You need time to consider the decision before making it.

    Review your financial documents thoroughly, and think about other options like debt settlement or consolidation.

    Make another chart that compares the advantages and disadvantages of each option.

  • Consult with an Expert

    Filing for bankruptcy is not an error-free process for anyone. A professional from a company like Demers Gagnier Inc. can help to improve your finances based on official documents.

    One of the attorney’s goals is to assure that the debtor is treated fairly by the creditor.

    A lawyer negotiates with the creditor on your behalf and use his or her experience to get justice through the courts.

    Individuals, small business owners and corporate executives are better off consulting with a bankruptcy attorney than doing the work on their own.

There are steps to make and avoid making when you file for bankruptcy.

First, it’s necessary that you get a complete picture of your finances. Filing with one major error could result in a dismissal of your bankruptcy case.

Consult with an expert to know if filing is the right decision. In the end, the experience should prepare you to make major changes in the ways you spend and save money.

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