When a business is struggling with debt, they may experience a number of hardships every day and have no idea of how to address their financial challenges. Fortunately, there are a variety of debt relief options that can help those who are in this position tackle overwhelming debt and look forward to a fresh financial start. In Salem, New Hampshire, and around the nation, it is very important for any business that is going through this to take action as soon as possible.
While Chapter 7 can often work out well for individuals, Chapter 7 bankruptcy is also sometimes a smart move for businesses as well. According to the U.S. Small Business Administration, turning to Chapter 7 is often an ideal decision for businesses that do not expect to remain in business or have any significant assets.
On the United States Courts’ website, businesses that are dealing with this will find a helpful overview of the Chapter 7 bankruptcy process. When businesses move forward with Chapter 7, they must first file their petition in bankruptcy court and provide schedules of their assets, liabilities, current income, expenditures, unexpired leases and executory contracts, along with a financial affairs statement and copy of their tax records. Courts typically charge fees, although these fees are sometimes waived depending on the debtor’s income. Next, a case trustee will schedule a meeting with creditors within two months of the date the bankruptcy petition was filed, which debtors must attend. For additional information regarding the discharge of debts and sale of assets, please refer to the U.S. Courts’ website.