Bankruptcy Education As Vital For Small Businesses

May 18, 2018 by

Education is vital for basically any topic of interest for humans but there are cases in which nobody really teaches people things that are really important. This is exactly the case with bankruptcy. According to David Offen, Philadelphia bankruptcy lawyer, most of the clients he serviced did not know anything about bankruptcy, what it involves, what is possible and what is not possible.

Bankruptcy is a word that automatically evokes fear. Although it is not the very first choice made by a businessman, in various cases it is the best possible solution, especially when faced with debt that simply cannot be repaid.

Why Bankruptcy Education?

Knowing as much as possible about bankruptcy helps in numerous ways. The two really important things you need to realize is that this knowledge can help you to know when bankruptcy is a good idea and how to do business in a way that minimizes the possibility you will actually end up having to file for bankruptcy. For instance, when talking strictly about chapter 7, most people do not know the following:

  • Bankruptcy filing can be quite expensive since attorney fees and court costs do add up. These are always non-dischargeable.
  • Property may be lost. While many properties can be eliminated from the list of what you lose and others are of no interest to anyone involved, some losses can appear.
  • Spending problems are not solved through bankruptcy, especially if you are used to spending much more than what you actually make.
  • You cannot discharge everything. For instance, if you have a nice car in the garage, there is a possibility it will be collected to be auctioned.
  • Bankruptcy does remain on credit reports for years. Improving credit scores automatically needs to become a priority after the bankruptcy process is over.

How Can You Be Educated About Bankruptcy?

The first thing that you can always do is simply look online for articles that talk about this topic. However, you need to remember that most people that write such articles are not actually attorneys or accountants. You might be faced with incorrect information. Be sure that you only trust those that have high authority in the industry. At the same time, do check the location of the person writing the article since it needs to be as close as possible to where you live.

If you are already faced with financial problems and you heard that bankruptcy is a solution, it is not too late to learn all that you can. However, in this case the best source of information for you is basically the attorney that you talk to in order to see if you should actually file for bankruptcy. Try to find highly experienced lawyers that did handle as many successful bankruptcy cases in the past as possible.

On the whole, bankruptcy is a moment that is really important in one’s life but it is not the end of anything. Try to be as educated as possible and learn all you can about it. This will help you to make really smart decisions and be more successful in your decision-making process.

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