Bankruptcy is a tool used by business owners and families who would otherwise never be able to escape their debts. However bankruptcy doesn’t exactly translate to mean the same thing when comparing an individual who’s filing to a corporation filing. Follow along below as we discuss how they vary and how they are alike.
Corporate bankruptcy is oftentimes a saving grace for business that struggling financially. Filing can allow corporations to get back on their feet and repay their debts rather than dissolve completely. To be in this situation a business is either in a position of liquidating some of its assets to repay its debts or is not in any way able to repay its debts.
There are several reasons why someone would file for personal bankruptcy. The first is the same as above, which is that the individual has debts so great they have no chance at being able to repay them. The other is that they would be able to manage their debt, but only on a managed payment plan.
Though the term bankruptcy still has a lot of stereotypes to overcome, more and more people are realizing it for the helpful tool it is. If you or a loved one needs a reputable bankruptcy lawyer in the Lake Forest, CA community, please contact us here. The team at Family Law Richard E. Young & Associates is committed to helping you through any legal processes from bankruptcy to divorce.