Four Tough Questions to Ask During and After Business Bankruptcy

Bankruptcy is definitely one of the most difficult experiences that you will ever endure, especially if you are in jeopardy of losing your business. As the financial stress piles up against you, you might be feeling lost and confused about how you can restructure your business in the future and get back on track. Because bankruptcy is tough and poses many questions, we would like to take this time to answer some of them today.

Business Bankruptcy Questions 

What is credit counseling and is it a damaging process? First of all, the credit counseling process is something that all individuals who go through bankruptcy endure. You will be advised on managing money and debts, developing a budget, get a copy of your credit report, and structure a debt management plan when you go through the credit counseling services. This can be extremely beneficial to you, especially because going through this process can help to answer many questions about bankruptcy and assist you with moving forward.

Credit counseling might offer you some solutions that are not as guaranteed as going through bankruptcy, which is why you want to pay close attention to what is being told to you and speak with an attorney immediately.

Can only one spouse file for business bankruptcy at a time? Yes, if you are thinking of choosing Chapter 7, 13, or any other type of related bankruptcy, you want to first explore your options, as every type of bankruptcy is different in its own regard and could impact your spouse as well. It is, however, possible for only one spouse to file for bankruptcy. You can keep the other spouse out of proceedings based on your circumstances. However, two spouses should always sit down together and think about which option is best as you move forward. 

How do you start rebuilding your credit after you have endured bankruptcy? One of the best ways to re-establish credit is to get a secured credit card with a local credit union or bank. To get an unsecured card, you will have to show the union or bank that you have had somewhere between one to two years of good payment history. This might seem like a time-consuming endeavor, but you will be feeling positive about it after completing the bankruptcy process and as its impact starts to fade. 

Will my credit score return to what it used to be? Perhaps, before you went through a bankruptcy, you had a wonderful 750 score and then watched it drop as you filed for bankruptcy. Yes, at first, it might be difficult to see your credit score drop so low and it might not be so easy to obtain a loan right off the bat. However, within years, your credit score should be returning to normal if your case has been discharged and you continue to work on your credit. Before you apply for new credit, you always want to ensure that your credit report is clean!

Turning to an Experienced Texas Bankruptcy Attorney 

Facing bankruptcy is not something that an individual wants to consider doing on their own, as it can be a complicated and distressing prospect. At MJ Watson & Associates, our experienced bankruptcy attorneys in Texas have handled many cases for those who have fallen behind in payments and feel as if there are no other options. We are here for you every step of the way, no matter what types of bankruptcy you think are best for you and your business. Please contact us for more information at (214) 965-8240.