Quick Answer: Companies can use bankruptcy as a last resort, after spending years working to regain their original financial status after a failed investment or an economic downturn. However, businesses also use bankruptcy as a way to avoid financial or legal obligations. Those in this situation can file for Chapter 11, which will reorganize funds…
Quick Answer: In one episode of hit show The Office, the company manager was falling deeply in debt and in an attempt to quickly rectify the situation, shouted across the room: “I declare bankruptcy!” As the rest of the characters knew, and most of us do too, that’s not quite how it works. There are…
Quick Answer: Tuition for colleges and universities has reached an all-time high, and parents and students have long been struggling to figure out the best way to afford their higher education goals while still remaining afloat in the day to day. Many are unsuccessful in this, and when parents file for bankruptcy after paying student…
Quick Answer: You may think you have a good financial grasp on your money until you start having more expenses and less income. Having less money coming in but more coming out can take its toll on your finances, especially if you start using credit cards to cover the discrepancies. Credit cards have limits and…
Quick Answer: To File or Not to File? Before You File Bankruptcy If you are struggling with debt, bankruptcy might be something you are considering. Bankruptcy allows individuals to obtain immediate relief from creditors and get a fresh financial start. Is Bankruptcy Right for Me You may want to consider bankruptcy if: You are having…
Quick Answer: Here’s the scenario-you have been chasing after a delinquent account and finally get the debtor to pay up. A few months later, you get sued by the debtor’s Bankruptcy Trustee for the money that the debtor just paid you! Sounds crazy, right? It’s called an “Avoidable Preference.” If you do business with individuals,…
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