Bankruptcy can happen to anyone. From a business owner to a salaried employee, even large corporations can face a situation of financial hardship so severe that such a declaration is made. Merely some dues and financial liabilities left unpaid isn’t bankruptcy, it is the bottom line of fiscal cruxes.
A business may be running smoothly for years, but one can never predict all market changes and adapt quickly enough. The entrepreneurs who fall behind in this instinctive management of funds face bankruptcy. An employee in a high position of a reputed company may fall into such financial problems as well. A sudden divorce and related alimony, unpredicted termination of service, and many unforeseeable reasons may cause a high salaried executive to suddenly face financial hardships.
Dues left unpaid develop into unmanageable liabilities over time, and creditors never fail to claim on time. This is only fair mostly, because money does make the world turn. It is the debtors’ job to ensure proper planning of their defense in such a situation. Bankruptcy is a good way of resolving problems if the reasons for the lack of funds are legitimate and reasonable. The court is often more lenient towards a voluntary declaration of bankruptcy by the debtor who seeks to resolve the issue and dutifully pay the dues.
Involuntary bankruptcy is when the creditors complain about an unresponsive debtor. Such a severe case may not only lead to loss of reputation and property, but could include jail time! It is always better to prepare well by setting all financial records, expenses, and income proofs straight well before such petitions arise.
In a case of such financial hardship, a bankruptcy lawyer is required. Skill in the particular field of managing insolvency and sound knowledge of individual cases is mandatory for safe resolution of a case of bankruptcy in court. By the US constitution, the cases are usually resolved by two Chapters –
Chapter 7: Deals with simple liquidation of assets to pay off creditors. This may mean business and/or personal assets and is the most common form of court resolution.
Chapter 13: This chapter is about reorganization of payments and applicable to individuals or businesses still incurring some income. The court evaluates and decides the parameters and amounts due to the creditors and fixes a reasonable installment scheme of paying back the payable amount.
But to be successful in tactfully managing a financial problem of that scale, you will need an experienced bankruptcy lawyer. Davenport, IA is within the area covered by the best debtor attorneys in two States. Buckrop & VanDeVelde Debtors’ Attorneys practice in both Illinois and Indiana and are the best available bankruptcy lawyers in the area.