Calling a Business Bankruptcy Attorney is a Smart Move in this Economy

The economy is worse today than it was a few years ago. The unemployment rate in this country is approximately 10%, the highest it has been in over 27 years. In addition, more than 15 % of working age Americans are being paid minimum wage or can only find a part-time job which fails to provide sufficient income. More businesses are closing everyday. When the economy collapsed several people lost their jobs and medical insurance. Many individuals were forced to use their credit cards to merely survive. Some are still unable to find a job. Several people are finding it nearly impossible to pay their mortgage payment and keep food on the table let alone pay outstanding credit card debt or medical bills. In times like this people have no other choice but to file bankruptcy. Calling a business bankruptcy attorney is a smart move in this economy. Bankruptcy is something that nobody wants to think about, especially small business owners. Unfortunately the economy is forcing business owners across the country to close their doors. When the unthinkable happens to you and your business sometimes there is no other solution. Don’t think of bankruptcy as an end but rather as a new beginning. A business bankruptcy attorney is designed to protect you as well as your lenders. Generally there are two different types of bankruptcy that your business can file – chapter 7 or chapter 11. While chapter 7 is considered as liquidation, chapter 11 is more of a reorganization or rehabilitation of a business. When a business owner files chapter 11 they will work through the court to satisfy secured debt. Secured debt will be paid before unsecured debt. Once a business owner files bankruptcy, they are not permitted to transfer or sell their assets. Creditors are not allowed to make an attempt to collect a debt from the business owner. If you are a business owner that needs a good start in a bad economy you may decide bankruptcy is the right decision. Make sure to get in touch with a competent attorney who deals with business bankruptcy. The right Minnesota bankruptcy attorney can help you rebuild your business and your life again.