A business is considered insolvent if it does not have enough income to pay all of its financial commitments. In this situation, the law provides a business an instrument to reorgnanize its debt and continue to operate after the debt is reorganized. When Donald Trump’s companies failed, he took things into his own hands and filed for bankruptcy… multiple times. Unbelievable? Read about it for yourself here: ABC News Article on Donald Trump’s Bankruptcies
This same instrument is available to you as an individual. If you as an individual cannot meet your financial commitments, it may be best to look to bankruptcy to allow your situation to improve immediately. Although your bankruptcy negotiations may not be as complicated as Donald Trumps’, you will benefit from your bankruptcy rights just as Donald Trump has done. To him, it was not an emotional decision, it was a simple business decision. He knows it is the best way to get debt discharged and allow his businesses to continue operating at the same time as the debt is reorganized.
When you take some financial risks, the community around you benefits from the profit that your financial risk creates. The economy needs people to spend and take some financial risks in order to grow and create new profits. As you take these risks, you should try to learn how to manage the consequences of taking this risk. What can you do if the financial gamble you took did not come to fruition as planned? For example, if you bought a home for $300,000 and took out another loan on your home for $50,000 to improve the home in the hopes that the improvements would cause your home to appreciate, you took a financial bet on that. Many parties benefit from your financial spending. The contractors who helped you improve your home made a profit. The bank that loaned you the money has potential profit from financing your home improvements. The government took taxes out of your expenditures from business tax to the contractors and income tax for its employees. And you got that brand new kitchen or other improvements to use in your home.
So, now the real estate market bottomed out. Your house that you bought for $300,000 and made improvements for $50,000 is now worth $200,000. You made a business decision to purchase and improve your home; so, you need to consider a business decision to cure your debt. Is it moral and fair that for you to bankrupt out of your debt? Well, was it fair that many people benefited from you taking the financial risk to improve your home, but when the risk did not pan out, you are the only one sufferring consequenses? Moral questions can be endless. For this reason, a moral argument has no place in this decision. Bankruptcy is not a moral decision. It is a business decision. Bankruptcy is not only fair, it is lawful for all of your creditors to comply.
If it makes sense for you to do financially for you to survive, then you should make it a priority to file for bankruptcy as a business decision. When you work with attorneys at a law firm, all of your information is confidential. There are no announcements sent out to your friends and neighbors about your bankruptcy. There is no sign posted on your property. Donald Trump is in the public’s eye. So, when he files for bankruptcy, it does make the news. Your bankruptcy is between you and us. Filings made in court are public record, but there aren’t many people who have the time or know-how to sort through public records to find your name in some massive list of filings.
If you have run into a difficult financial situation and are curious about your rights under the bankruptcy code, contact Bankruptcy Law Professionals at 855 257-7671 or 855 BKPROS1. We have offices serving Los Angeles, Orange County and the Inland Empire with multiple locations.