What to do when going bankrupt
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artie
Apprentice
Joined: 15 Sep 2005
Posts: 1
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 Posted: 09/29/07 - 08:25 Post subject: |
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Unfortunately, Im in such a hopeless situation that Ill have to file for bankruptcy. What Id like to know is whether my debts can be cleared and also how this can affect my future, since Im planning to open another company which is going to have completely different activity and I hope my previous business wont put a shade on this one.
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mic
Apprentice
Joined: 22 Sep 2006
Posts: 1
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| Posted: 10/25/07 - 00:36 Post subject: |
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First, regarding your debts, there is a way for your debts to be cleared, and that is going to happen if you file for Chapter 7, which means filing for liquidation. In this case, all your property will be taken and sold which will cover the debts. That is good side, and bad side is that the liquidation or bankruptcy is going to be kept in your credit record for next 10 years. This way, bankruptcy could affect your future business. There is a possibility to file for Chapter 13, which means filing for reorganization. Youll have to pay off all your debts but under changed conditions. Youll have few years for that. But if you owe too much this option could be inaccessible for you.
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