For many people dealing with financial problems, bankruptcy can be the best option. In some cases, you may be able to have your debts forgiven, meaning that you will no longer need to pay creditors. This option can be a great relief, allowing you to regain control of your financial future. However, this can often pose a big question. Who pays for these debts?
You Will Pay a Portion
You will be paying a part of your debt in some cases. There are a few ways that you can do this. For example, you may have to liquidate some assets, like selling stock or investments. In other cases, you may have a lien placed against your house so that the lender will get a portion of the sale proceeds. In some cases, if you get a chapter 13 bankruptcy, you may need to fill out a payment plan. In this type of bankruptcy, you’ll need to pay back most of the debt.
Often, the ways that you’ll pay back creditors will depend on your circumstances. To get a better idea about how you may be affected by filing for bankruptcy, you might want to get in touch with our bankruptcy attorney in Chatsworth, CA. We can talk you through your legal obligations, making sure that you understand the process. This information can assist you in deciding whether or not filing for bankruptcy is the right choice for you.
Companies Can Absorb Debts
Even when you liquidate assets, it’s often not enough to pay back all the debts. Most larger companies are prepared for events like this. Usually, they’ll have some money set aside, so they’ll be able to absorb the debts.
For smaller companies, they might not have enough set aside to absorb losses. In this case, they may need to cope by laying off some staff or temporarily increasing product prices. Often, these measures will only be temporary. Once the business has recovered, they can return to trading as usual.
Corporate Bankruptcies
When a company goes bankrupt, it can be a highly complex process, often taking a long time. In most cases, they’ll need to find some ways to cut costs to survive. Usually, this means laying off employees and increasing product prices. In other cases, they may need to discontinue some product lines.
We Can Help You File for Bankruptcy
Deciding whether to file for bankruptcy can be a tough choice. If you’re unsure about whether or not this option is right for you, you may want to talk to a bankruptcy attorney in Barbara, CA. We can talk about your circumstances, finding the right option for you. If you choose to file for bankruptcy, the team at the Law Offices of R. Grace Rodriguez can help. Our pros have over 22 years of experience, so we can make the process as smooth as possible. To get more information, call us today and book your free consultation.