How Business Can Benefit From Zero Down Bankruptcy in Tempe, AZ?
Rock Law Firm
When you're in financial trouble, it can feel like the end of the world. The stress is overwhelming, making it difficult to think clearly about how to proceed. However, you do not have to lose everything. There are options available to help you get back on track and keep your company from going further into debt. One of the best options is Arizona's zero-down bankruptcy.
Bankruptcy is a legal process that assists individuals and businesses in eliminating or reorganizing debt by liquidating or reorganizing assets. When used correctly, the bankruptcy process can assist people in recovering from financial difficulties and regaining control of their finances. Here's a rundown of everything you need to know about the zero-down bankruptcy process and how Arizona bankruptcy lawyers can assist you.
What Is Zero Down Bankruptcy?
Zero-down bankruptcy is also called "no asset" bankruptcy or "Chapter 7-only" bankruptcy. It is a new option for people who want to file a bankruptcy petition but don’t have the money to pay their debts. It’s called "zero down" because it doesn’t require you to pay any money upfront – not even a filing fee or court fees.
The benefits of filing bankruptcy include the following:
Reorganization
If you are unable to pay off all of your debts, bankruptcy allows for reorganization so that you can pay off creditors gradually rather than all at once, leaving no money for yourself or your family.
Liquidation
If you simply cannot repay your debts and do not wish to go through the hassle of reorganization, liquidation may be an option for you. This entails selling some possessions (such as furniture or appliances) in order to pay off creditors without having to wait years for those payments to arrive.
Debt Relief
Individuals and businesses can start over with a clean slate after declaring bankruptcy. It is critical to remember that bankruptcy does not discharge the debt. It restructures it instead, making payments more affordable and manageable.
In addition to these advantages, filing for bankruptcy has numerous tax advantages. For example, if you owe taxes at the time of filing, those amounts can be discharged in Chapter 7 bankruptcy proceedings. This does not apply, however, if they were incurred within 90 days of filing or if they were assessed as part of an IRS collection action prior to the filing date.
A Zero Down Bankruptcy Lawyer Can Help Businesses File for Chapter 7 Bankruptcy Protection
Bankruptcy is a major decision. It's something you should only do if all other options have been exhausted, and it will have far-reaching consequences for the rest of your life. It can, however, be a great way to start over and get back on track financially.
The advantages of bankruptcy are numerous, ranging from debt relief to have a clean slate after the process is completed. For example, if you file for Chapter 7 bankruptcy, you may be able to discharge certain types of debt, such as credit card balances and medical bills, without having to make any payments toward them. Furthermore, if you file for Chapter 7 bankruptcy, you will have no outstanding debts at the end of the process.
In addition to eliminating your debts, filing Chapter 7 bankruptcy allows you to keep many assets, such as real estate or vehicles, that would otherwise be lost if sold to repay creditors. As a result, if you need financial assistance but don't want to lose your assets or have them seized by creditors, filing Chapter 7 bankruptcy may be the best option for you.
Most people's eligibility for Chapter 7 bankruptcy is determined by their income and expenses, which are calculated during the means test. A debtor with a low enough income can file for Chapter 7 bankruptcy if they have non-exempt assets that can be liquidated to pay off the debtor's creditors.
A Zero Down Bankruptcy Attorney Can Help You File for Chapter 13 Bankruptcy
The first step in any bankruptcy filing is to contact a zero-down bankruptcy lawyer who can explain the benefits of filing for Chapter 13 bankruptcy. Of course, the main advantage is that it allows you to get out of debt and start over.
A Chapter 13 bankruptcy allows you to reorganize your debts and pay them off over three to five years at an affordable rate. This gives you time to find the funds you need to restructure your finances and avoid foreclosure or wage garnishment from creditors. This way, you won't have to worry about other creditors hounding you for payments on top of your regular bills as you pay off these debts.
Another advantage for businesses is that when filing for Chapter 13 bankruptcy, they do not have to give up any assets.
Business owners frequently have valuable items, such as equipment or furniture, that they want to keep because they help their company run smoothly. They would have no way of making money if they were forced to sell these items to repay creditors. This does not occur when filing for Chapter 13 bankruptcy because a zero-down bankruptcy lawyer can assist businesses in keeping their assets while also providing them with a financial fresh start.
Contact Rock Law Firm for the Best Legal and Financial Advice in Tempe, AZ
If your company isn't running as smoothly as you'd like and you can't afford the necessary operating costs, it may be time to file for bankruptcy.
Bankruptcy is not easy, but for some businesses, it is a viable option for turning things around. This legal process, in the hands of the right Phoenix debt relief team, can be your best chance at getting out from under your debts and starting over. At Rock Law Firm, we work with our bankruptcy clients to help them understand the benefits of filing for bankruptcy and decide which approach is best for them. We will work hard to guide you through the process and get you the relief you need with no money down and same-day bankruptcy filings. Call our bankruptcy law firm at (480) 613-9690.