The economy of the last decade took a negative toll on millions of small businesses throughout the country. Your own may not have been able to survive the economic turmoil that resulted in companies losing money needed to pay bills. Recovering from such devastation can take years that you cannot afford to spare right now. You might have creditors knocking at your door demanding money which you simply do not have in your bank account. When you realize how and when to use business bankruptcy TN entrepreneurs like you may have a future to look forward to and also have a legal means with which to protect your assets.
Taking this legal step to protect your assets may be necessary sooner rather than later. Depending on your financial situation, you may be told that creditors like banks and equipment loan holders can seize your assets and sell them off to settle your debts. This action could mean losing your company's car, liquid assets like cash and accounts receivable, and perhaps even personal possessions like your home.
Filing this action in court prevents the creditors from seizing your belongings. It puts your company into a protected status with the federal court until your case is heard and decided. No creditor can levy the assets because these belongings will be put into possession of the court and the court trustee.
If you plan to liquidate all of your debts, some of the possessions could be sold off, however, to settle some types of accounts. For example, if the trustee decides that you do not need two homes, the home used for vacation or secondary purposes will be sold and the money used to pay off some of the people to whom you owe money. You will not be allowed to decide if or for how much the asset is liquidated.
However, the judge has the legal obligation of protecting your income, your primary home, and at least one car in your possession. These assets are deemed necessary for you to be able to live a productive life. The creditors cannot lay claim to them and instead may be told that they have no choice but to write off your debt entirely.
Filing this type of case in court can be confusing if you were to try it all by yourself. You may not know what documents are required by the clerk and what proof of income and debts must be filed right away. Without some or all of the documents, your case could be thrown out of court.
They are not allowed to send letters, make phone calls, or visit you in person demanding payment. Any communication must go through your attorney's office. Failure to abide by this court order could result in them being held liable for your court costs as well as other civil penalties.
A bankruptcy could be in the best interest of your business when you have more debt than money in your bank account. Your assets could be at risk of being levied or seized. This type of legal action may safeguard what you own and prevent it from being levied or taken by creditors.
Taking this legal step to protect your assets may be necessary sooner rather than later. Depending on your financial situation, you may be told that creditors like banks and equipment loan holders can seize your assets and sell them off to settle your debts. This action could mean losing your company's car, liquid assets like cash and accounts receivable, and perhaps even personal possessions like your home.
Filing this action in court prevents the creditors from seizing your belongings. It puts your company into a protected status with the federal court until your case is heard and decided. No creditor can levy the assets because these belongings will be put into possession of the court and the court trustee.
If you plan to liquidate all of your debts, some of the possessions could be sold off, however, to settle some types of accounts. For example, if the trustee decides that you do not need two homes, the home used for vacation or secondary purposes will be sold and the money used to pay off some of the people to whom you owe money. You will not be allowed to decide if or for how much the asset is liquidated.
However, the judge has the legal obligation of protecting your income, your primary home, and at least one car in your possession. These assets are deemed necessary for you to be able to live a productive life. The creditors cannot lay claim to them and instead may be told that they have no choice but to write off your debt entirely.
Filing this type of case in court can be confusing if you were to try it all by yourself. You may not know what documents are required by the clerk and what proof of income and debts must be filed right away. Without some or all of the documents, your case could be thrown out of court.
They are not allowed to send letters, make phone calls, or visit you in person demanding payment. Any communication must go through your attorney's office. Failure to abide by this court order could result in them being held liable for your court costs as well as other civil penalties.
A bankruptcy could be in the best interest of your business when you have more debt than money in your bank account. Your assets could be at risk of being levied or seized. This type of legal action may safeguard what you own and prevent it from being levied or taken by creditors.
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