In Kansas, small businesses need debt relief to prevent a complete shutdown of the company. The fastest method of debt relief for these companies is to file for bankruptcy. The bankruptcy claim can spread out these debts over a five-year period. This could achieve lower payments and make them more affordable for the business owner. The following are details about how small businesses file for bankruptcy through Joseph I Wittman Attorney at Law.
Acquire All Financial Records for Six Months
The business owner must gather all financial records for the last six months. These statements must show all incoming profits collected for this period. This value helps the attorney calculate the projected annual income for the business owner. This income value defines whether or not they qualify for chapter 13 or 7. If they have incoming profits that exceed $41,000, they have the option to choose either chapter.
Catalog All Debts and Outstanding Balances
Next, the business owner must catalog all debts and outstanding balances. This includes all debts that appear on the company’s credit reports that are charged off as well. They need full details about the debts including account numbers, balances, and the name of the creditor that owns the account.
Attend the Meeting of Creditors
The business owner must attend the meeting of creditors to discuss their case with their creditors. This meeting allows creditors to approve or deny inclusion of their debt into the claim. However, the judge can overrule a denial based on any additional efforts to acquire payment. This includes insurance claims filed by the creditor to collect any portion of the debt.
Comply with All Bankruptcy Requirements
The small business owner must comply with all bankruptcy requirements. This includes restrictions on disposable income. They also must avoid any new lines of credit until the case is discharged.
In Kansas, small businesses may face overwhelming debts. These debts require them to take immediate action or face serious legal consequences. A viable opportunity for these small business owners is to file for bankruptcy. Business owners who want to start a claim contact Joseph I Wittman Attorney at Law or Click here for more information now.