You have done the sums. Looked at all the options. There is no escape so you are filing for bankruptcy. It is probably something you had always feared, especially if you are a small business owner.
You did everything right; wrote a business plan, managed your marketing and finances, and are disappointed it just has not worked out. There is so much mounting debt you start facing the dreaded bankruptcy questions.
How Broke are You?
To file for bankruptcy you must be insolvent. You are insolvent if:
- You are an undischarged bankrupt
- You are at least $1,000 in debt
- Can not keep up with regular loan payments
- Your assets are worth less than you owe
Can I File Without an Attorney?
Individuals can file for bankruptcy without an attorney, but partnerships and corporations need one. But, it is highly recommended you do not file for bankruptcy without expert advice and guidance. Bankruptcy law is very complicated and it can be easy to miss a crucial step in the process. Something as simple as forgetting to file a required document could cost you the case, and have ongoing consequences that prevent you from filing your case again.
When you file for bankruptcy you must lodge a list of all debts and property that are included in the bankruptcy estate. If you forget to list a debt it may not be discharged. Also the court can decide not to discharge any debt if you act dishonestly in regards to your case (lying, falsifying records, etc).
Beware; do not think bankruptcy is an easy option. You can wear the consequences for years to come. Fraud is a crime and the
bankruptcy court does random audits on debtors, so make sure you have everything in order when they do.
Should Someone Prepare Your Petition?
There are non attorney’s that can prepare your petition ready to file to the bankruptcy court. Make sure that they fulfill all legal requirements. Petition preparers can not legally give legal advice of any sort. Their sole role is to fill in your bankruptcy forms. They cannot sign any documents or receive any money on your behalf and must clearly supply their name, address and social security number on every document they prepare. A copy must also be given to you.
Filing for bankruptcy is a difficult and complex process; get all the advice you need before facing the dreaded bankruptcy questions.
Author's Bio
Copyright Bill Baxter, who has provided more in-depth information here on bankruptcy questions.
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