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Archive for the ‘Bankruptcy’ Category

Despite the decline in the 2009 Scottish figures for bankruptcy, leading professionals PKF, forecast that the insolvency of hundreds of people in Scotland will go bankrupt every week during 2010. Their spokesman Bryan Jackson said the figures may reflect the alleviation of the bankruptcy process in Scotland.

Of the 3, 504 Scottish awards for bankruptcy during this period 2, 778 applications were as a result of the debtor to the accountant in bankruptcy, an agency of the Scottish Government.

Application of the debtors to the accountant in bankruptcy

Since the changes in the law were introduced in 2008, the route of application of the debtor in bankruptcy in Scotland is a method proven to be increasingly accepted. Recent figures released by the accountant in bankruptcy certainly validate this.

Bankruptcy Scotland

In certain circumstances a person in Scotland, unable to pay their creditors, can now apply for their own failure even without the agreement of the Scottish any of their creditors. As the Accountant in administering the bankruptcy process, a court appearance is not required. Read the rest of this entry »

If you own a business that is registered as an association and you are in the position of having to declare personal bankruptcy, what happens to your business? Does that mean personal bankruptcy is the bankruptcy of small businesses as well?

Owning a partnership means that your personal and business finances are one thing. It also means the same for partners. Each partner is responsible for all debts of the company.

From his personal debts and business debts are the same, are not separate when you file for bankruptcy protection. This means your personal assets and business assets both included in your bankruptcy documents.

Many of his personal property will be considered exempt under a Chapter 7 bankruptcy – which means that you get to keep these assets even though they are wiping out their debt. Unfortunately, this is not usually the case when it comes to business assets. Most of these assets will become property of the estate, and settled to pay your creditors of your debt.

Unless your partner can replace these assets, this usually means that your association will have to close.

There are a couple of options that can save your business, however. First, you can apply for protection of Chapter 13 bankruptcy, instead of filing Chapter 7. This gives you the ability to repay their debts over a period of time – usually 3 to 5 years. Although Chapter 13 does not erase their debts, allowing you to keep your business assets for you and your partners can continue to operate the business.

The other option is to enter the business. This will help you separate your personal and business liability. While the subject will become the master of his participation in business when you file bankruptcy, you have the option to repurchase its shares at their fair market value. Often, the fair market value is less than the amount of debt you have, so it may be a less costly way to obtain debt relief, keeping your business.

Compared to the legal system of the old days, we can conclude that the recent legal system has been made to be more humane and mild towards the guilty. For dealing with the debtors who cannot pay their debt on the due date, for example, today’s debtor do not have to face the scary punishment of being sentenced to death, enslaved, or put in prison if he can search a way out of the intertwining bound of the recent legal system.

Even if we cannot pay the debt due to our own miscalculation, we still can ask for the help of the bankruptcy attorney to file for bankruptcy status which will free us from all the burden of mountainous debts.

Somehow, the role of the bankruptcy attorney here has become even much more crucial nowadays. The bankruptcy attorney will act as our legal representative who has the right to decide what to do for our own sake and our own good. Based on the data they collect from us and from their investigation, they will try hard to save us from the hell of the burden of debts.

Besides, the bankruptcy attorney will also become our legal consultant from whom we get insights and idea to solve the complicated problem of bankruptcy process. Without their help, we will surely lose a great deal instead of saving our assets in front of the complicated legal system of bankruptcy.