There are many challenging decisions in life such as whether to go to college, move for a job, have children, or retire. These decisions can be life-altering and forever change your financial future. When debt takes over, life can become overwhelming and even worrisome. You may not know what to do or if things can ever return to normal. Even if it seems like a drastic and desperate move, filing for bankruptcy is not only a reliable option, it is also often the best step to take in order to obtain a fresh financial start.
Dealing with debt can be a difficult and emotional for many individuals in California. Although many debt issues can be overcome, some individuals are so overwhelmed that they find that they cannot to do so on their own. Thus, seeking guidance about debt relief options is often a necessary step. While filing for bankruptcy can seem like a negative or daunting task, it is frequently used to give individuals and families a fresh financial start.
Deciding to declare for bankruptcy may seem like a daunting decision for many. Admitting that you may not be able to overcome your financial challenges is not an easy decision, but it is important to remember that bankruptcy is designed to help you overcome the burden of debt, and although the recovery process may not be quick or easy, in the long run declaring for bankruptcy may be the way to go.
Different bankruptcy options are available to help businesses and people struggling with debt during hard times. Payless ShoeSource, shoe retailer, recently filed for bankruptcy protection and will be closing 400 stores, including 50 in California, as a result. The shoe retailer announced it will begin immediate liquidation in the stores that are closing. The company plans to reduce its debt by 50 percent and has lenders to provide funding to keep the company operating during the Chapter 11 bankruptcy process.
Chapter 7 like other forms of bankruptcy has its own unique requirements, and these requirements must be fulfilled if a person is to be illegible for filing bankruptcy under Chapter 7. These are the circumstances in which the person will be considered ineligible for Chapter 7:
The word bankruptcy alone has a way of making people feel apprehensive and uneasy. Nobody ever thinks that they will one day find themselves in the position of filing for bankruptcy. Unfortunately, for many Americans, hard financial times leave them with no other choice than to file for what is known as Chapter 7 bankruptcy.
Chapter 7 bankruptcy is the most common form of bankruptcy in the United States. It is also referred to as liquidation bankruptcy. It allows debtors to lose all their debt and start over from scratch. Most of their assets are liquidated to pay off the creditors, and their credit score decreases. The creditors are paid off, and the filer can have a clean slate. In 2005, there were major changes made to the bankruptcy law to stop people from abusing it. After these changes, eligibility criteria to file for Chapter 7 bankruptcy became stricter.
When many people in California think about bankruptcy, they likely do so in a negative light. Some feel that the only reason to file for Chapter 7 bankruptcy is due to a lack of financial discipline. Others assume that bankruptcy represents some type of failure. Some even believe that bankruptcy is nothing more than an effort to shirk one's financial obligations. In reality, however, many highly successful people turn to personal bankruptcy to resolve complex financial matters.
Often, companies in California have many different employees who dedicate themselves to the company's success. Despite this dedication, there are often factors beyond the control of workers that can impact revenue. In some cases, a company may decide that the best option is to seek Chapter 7 bankruptcy protection.