You may find yourself asking this question at one point or another. The answer may be as straightforward as a "yes" or "no" but there are many factors to consider before making that decision.
In order to help you decide whether it makes sense for you, we will go over the pros and cons of both options
It is important that you know your options before making any decisions about your financial situation so that you can make an informed decision.
Despite what you may have heard, bankruptcy should be considered a last resort in most cases. If it is the right choice for you, you should know what to expect as well as what to do if it isn't. Before making your final decision, we recommend that you see an experienced bankruptcy attorney in your area who can help you make an informed decision that is based on all of the facts.
There are two main reasons why a bankruptcy filing might be necessary for the individual filing for Chapter 7 or Chapter 13:
Financial dependency (living paycheck to paycheck) and Too many obligations (piling up credit card debt).
In order to qualify for bankruptcy, the debtor must be able to prove that he or she has become financially unable to repay debts. According to the U.S. government's official Bankruptcy Information, "The courts consider a person in an unattractive financial position because of unemployment, divorce, death of a spouse or financial problems caused by illness" as being in such a situation. If you have not been employed for at least six months and have one of these factors in your life (unemployment, divorce and so on), then you may be eligible for bankruptcy protection under Chapter 7 and Chapter 13.
-Shutting down on the other hand means you would stop all business operations (surrendering all assets) and file a Chapter 7 or Chapter 13 bankruptcy.
Cons of Shutting Down
Shutting down has its own set of potential drawbacks too. Other than being unprofitable in the long run, earning income from the business is not possible after shut down. You need to stop operation otherwise you will be liable for payment as per your obligation (contracts are entered into under terms of exchange) until date of filing for bankruptcy.
In order to help you decide whether it makes sense for you, we will go over the pros and cons of both options
It is important that you know your options before making any decisions about your financial situation so that you can make an informed decision.
Despite what you may have heard, bankruptcy should be considered a last resort in most cases. If it is the right choice for you, you should know what to expect as well as what to do if it isn't. Before making your final decision, we recommend that you see an experienced bankruptcy attorney in your area who can help you make an informed decision that is based on all of the facts.
There are two main reasons why a bankruptcy filing might be necessary for the individual filing for Chapter 7 or Chapter 13:
Financial dependency (living paycheck to paycheck) and Too many obligations (piling up credit card debt).
In order to qualify for bankruptcy, the debtor must be able to prove that he or she has become financially unable to repay debts. According to the U.S. government's official Bankruptcy Information, "The courts consider a person in an unattractive financial position because of unemployment, divorce, death of a spouse or financial problems caused by illness" as being in such a situation. If you have not been employed for at least six months and have one of these factors in your life (unemployment, divorce and so on), then you may be eligible for bankruptcy protection under Chapter 7 and Chapter 13.
-Shutting down on the other hand means you would stop all business operations (surrendering all assets) and file a Chapter 7 or Chapter 13 bankruptcy.
Cons of Shutting Down
Shutting down has its own set of potential drawbacks too. Other than being unprofitable in the long run, earning income from the business is not possible after shut down. You need to stop operation otherwise you will be liable for payment as per your obligation (contracts are entered into under terms of exchange) until date of filing for bankruptcy.
