Bad faith bankruptcy filings are a term used by the courts and the US Trustee’s office to show that a person has attempted to file bankruptcy in a manner that is not consistent with the spirit of the bankruptcy code. Lenders who object to a debtor filing bankruptcy or object to the dischargeability of a certain debt will file motions if they are bound and determined to hold the debt to not be dischargeable. A seasoned bankruptcy law firm in Cedar Hill can assist clients in determining their level of risk for creditors coming after them or attempting to fight their bankruptcy. The key is to determine whether there appears to be any funny business going on or any such types of debt or creditors which could turn out to be problematic for a bankruptcy.
When a good attorney discusses your case with you and discovers that there are potential issues, it is wise to heed the advice of qualified professionals in order to keep from getting into a worse situation then when you started. Our firm is prepared to provide the best possible advice tailored to your situation that we can provide. We often are not prepared to take a bankruptcy client if they do not fall into the category of the type of bankruptcy that we can reasonable handle. Our firm handles consumer bankruptcies primarily, with the occasional small business owner filing that is designed to help a business owner file a personal bankruptcy that allows them to move on with their life. The relief can be massive in the absence of their massive business debt, or in the absence of the consumer debt which they acquired to help them keep their business alive until they could start taking an income from the business.
It is a shame when a business fails, but a good bankruptcy law office can assist a client in getting back on their feet. Sometimes this comes in the form of a reorganization bankruptcy that is designed to restructure debts and get the finances back on track. On the other hand, a chapter 7 bankruptcy could be intended to get a fresh start after a failed bankruptcy.
Some of the common debts which accumulate for a small business owner which can be overwhelming to service include such debts as:
- Unpaid business utilities
- Unpaid business rent
- Business credit cards
- Personal credit cards used to finance a personal household in the absence of a solid business income
- Business loans such as SBA loans
- Business lines of credit
- Any agreements or obligations for which a personal guarantee was required or pledged in order to obtain assurances for the lender or vendor providing services to a new business
Contact a local bankruptcy attorney to determine whether there are options to eliminate debts. Some of the options available to small business owners include those situations which involve a negotiation of debts or a restructuring. Options for doing this include chapter 13 personal bankruptcy or business chapter 11 bankruptcy filings. Some companies also offer debt settlement options.