Filing Bankruptcy under the chapter 13 provision is arguably the most complex of the three (declaring Chapter 7, declaring Chapter 11 or declaring Chapter 13). If you are a small business owner and you have business and individual debt, declaring chapter 13 may be the best option for you. Chapter 13 Bankruptcy involves declaring bankruptcy as an individual and including your business related debt in that bankruptcy. In this way, declaring chapter 13 is sort of a two birds with one stone deal. If a person can pull off declaring Chapter 13, they do stand to come out better than they went in. With this in mind, any person who is considering declaring chapter 13 needs to prepare themselves very well before the process is started. Do you have lawyer helping you?
Perhaps the most important thing I'd like to impress upon an individual considering declaring Chapter 13 is to NOT do it without professional help. Contacting a lawyer is essential. There are many facets to the Chapter 13 code and just as many requirements. When considering declaring chapter 13 it's important to keep in mind that there are law firms and practices that specialize in helping those who are thinking of declaring Chapter 13. This is perhaps owing to the fact that as declaring chapter 13, in a rudimentary sort of way combines chapter 7 and chapter 11 into one amalgam, is a choice many small business owners make. Large Corporations have lawyers on staff and typically file under chapter 11. Individuals will file under chapter 7 and can (BUT ARE NOT ADVISED TO) file on their own without a lawyer (refered to as pro se) Those who are contemplating declaring Chapter 13 often have complicated situations they are facing.
If you are reading this then, on the road to declaring chapter 13, you have already taken the first step. The internet is a fabulous place to gain an understanding of declaring chapter 13 and collect the information you need. By following the path you are now on, in a relatively short time you will have the resources necessary to move forward with declaring chapter 13, if you conclude that filing is in your best interest. The nice thing about the internet is unlike contacting a lawyer or firm as your first step you needn't pay out any unnecessary fees or incur any costs at all. Also, you will not fall pray to any persons sales tactics. Declaring Chapter 13, as I have said, isn't something you should do alone but preliminary research is.
Who is it, then that actually declares Chapter 13. Those declaring chapter 13 don't necessarily fit into any one demographic and the reason behind their filings do not necessarily conform to any one reason or set of reasons. Primarily those declaring chapter 13 are small business owners in considerable debt. That debt is both private and professional. Shifting markets are often involved with persons declaring chapter 13. It is a common tale to get into a business when a particular market is good, only to find after putting out considerable moies, the market takes a nose dive. Such shifts are difficult to predict and trap many small business owners who do not have the capital to have diversified. Diversification is key to surviving shifting trends. Declaring chapter 13 often can give an individual a chance to diversify their portfolio and thus save their business or personal finances.
© 2008 Declaring Chapter 7.