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Evaluating Debt Relief vs Bankruptcy According to RealtimeCampaign.com

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Evaluating Debt Relief vs Bankruptcy According to RealtimeCampaign.com

April 10
03:25 2020
Evaluating Debt Relief vs Bankruptcy According to RealtimeCampaign.com

Business owners who are facing overwhelming debt must take fast action to avoid lawsuits and the complete shutdown of their business. When approaching a plan to manage debts, the business owner must consider all their options for settling their debts. Evaluating debt relief vs bankruptcy helps the business owner make a better choice for their financial circumstances. 

How Does Debt Relief Work?

Debt relief offers business owners an opportunity to reduce their total debt balance by negotiating with their creditors. The counselors discuss opportunities for settlement offers with credit card companies, debt collection agencies, and lenders. The settlement offers consist of either a lump-sum payment that is up to 50% less than the debt balance or an installment payment plan. The debt counselors get a fair and reasonable settlement for the debts and set up a plan for the business owner to pay off the debts over a predetermined period of time. Business owners who want more details about debt relief can contact businesses such as CreditAssociates now. 

What is Chapter 11?

Chapter 11 is similar to chapter 13, but it is more suited for businesses. The process requires a reorganization of the company’s debts and a more structured payment plan. The process takes up to five years to complete. In bankruptcy, the business owner must submit all payments in a timely manner and cannot miss any payments. All profits are used to pay workers, manage monthly expenses, and settle the debts that weren’t included in the bankruptcy claim. According to realtimecampaign.com, business owners who are considering chapter 11 are advised to read, “How to Use and Not Use Chapter 11 in Bad Economic Times,” before starting a claim. 

What Could Happen During the Bankruptcy?

A trustee could be assigned to the case to make sure that the business owner complies with all restrictions associated with the bankruptcy claim. In chapter 11, the business will continue to operate, instead of getting shut down like chapter 7. However, if the court doesn’t feel that the business owner is operating the business ethically or defying any restrictions, the trustee takes overall business operations and manages the payments for the company’s debts. To get more information, the business owner could consult an attorney.

Restrictions the Business Owner Faces

During the bankruptcy, the business owner cannot open any new lines of credit or finance any new business ventures. The court monitors how all incoming profits are used and determines what money is used to pay debts outside of the bankruptcy case. If the bankruptcy is discharged for any reason other than the fulfillment of the case, the business owner is immediately responsible for all debts and could face a lawsuit. The automatic stay applied to debts is reversed if the case is discharged early.  

Business owners who two primary options for settling their debts. The owner works with a debt relief counselor or they can file for bankruptcy. Each option presents its share of pros and cons. Evaluating debt relief vs bankruptcy helps the business find the best solution for them and manage their debts successfully.

Media Contact
Company Name: Realtimecampaign.com
Contact Person: Rose Mary
Email: Send Email
Phone: 407-875-1833
Country: United States
Website: Realtimecampaign.com