To a small business owner who is facing a debt spiral that does not seem to have a solution, it can be difficult to know just what to do. Bankruptcy is always there as an option, but the way that it works can cause distress to many people, especially when they do not understand the process ahead of time. Questions about losing homes and other property are quite common, and when bankruptcy is complicated by business ownership it gets to be even more stressful. Here is what a person needs to understand about it.
When your business is in financial trouble, you have to do everything you can to bring it back around and get it back on its feet again. That's why so many entrepreneurs are willing to take big risks like personal debt to ensure they keep their doors open. Unfortunately, though, there comes a time when taking measures to save a business will not help anymore, which is when closing down the operation becomes necessary. Under those circumstances, it can also be necessary to seek some relief from your debts, especially if you are personally liable for the debts your small business has incurred.
What comes to your mind when you hear the word "bankruptcy"? Perhaps you think that filing means all of your debts will be erased or that you will have to live without your car and house. Misconceptions about bankruptcy are common, so it is worth looking at a top few.
In June of this year, we discussed a case involving the Federal Trade Commission punishing a subprime lender for illegal debt collection practices. In that post, it was noted that the lender had to pay millions of dollars in fines for various violations regarding their debt collection practices.
Americans often rely on using credit to make both necessary and luxury purchases. Unfortunately, this consumer culture has led to a great deal of credit card debt in the country. The inability to pay bills on time, and making only minimum payments, could result in interest atop mounting expenses, and a vicious cycle of continuously owing money.
The effects of low consumer spending have hit several retail businesses hard. People are seemingly visiting malls less, as hard economic times lead to more cautious spending. In this type of climate, consumers and businesses are all dealing with financial strain, and many people are considering filing for bankruptcy.
Earlier this month we wrote a blog post regarding a student loan debt relief program that might enable some loan holders to effectively restructure their payments. That particular relief idea is generally aimed at recent college graduates who have not yet had the chance to establish themselves in their careers.
According to information provided by the National Center for Education Statistics website, during the decades 2001–02 and 2011–12, the cost of attending public institutions, including undergraduate tuition, and room and board, rose 40 percent. Prices at private nonprofit institutions also increased, though not as dramatically, by an estimated 28 percent. What this has meant for the average New Jersey college student is in an increase in the amount of student loan debt with which one graduates.
The people of New Jersey work hard to support their families and achieve the American dream. Home ownership is a crucial part of that dream. Owning a home can provide a family with a sense of financial security, community and responsibility. But through the economic downturn over the past six years, thousands of people have lost their homes to foreclosure.
Even though financial gurus have been assuring us that the worst of the financial crisis is over, foreclosures of family homes don’t seem to be slowing down. According to Realty Trac, more than 1.1 million homes in America are currently in some phase of the foreclosure process, and as we reported in a recent blog post, foreclosures in New Jersey are still on the rise.