Text Size:
  

Springfield  |  Westfield  |  Northampton  |  Amherst   |  All Offices: 413.781.0560

Bankruptcy

If you are buried in a seemingly hopeless pile of debt and facing bankruptcy, you are likely feeling overwhelmed and anxious, and you’ll need an advocate to help you through the process.

This life stage is full of regulations and guidelines that must be followed exactly, so solid legal guidance is critical. Below, you can read about some of the things you’ll face within your bankruptcy life stage, so please review the list and watch the videos, then call one of our bankruptcy attorneys for assistance with your particular situation.

Avoiding business bankruptcy proceedings


Most small businesses are financially cyclical to some extent, with some days, weeks, months and years better than others. Although good financial planning can lessen the impact of economic downturn, many businesses do experience some level of financial hardship at one time or another. These times can be especially difficult if the business owner becomes uncertain of his ability to make a monthly payment to a secured lender.

There are ways to deal with cash-flow problems as they apply to secured lender obligations. It is important to put them into perspective by way of a timeline. Usually the inability to pay is not an unforeseen occurrence discovered on the day a payment is due, but rather is foreseeable at least 90 to 120 days in advance. This is generally the most crucial time period and is referred to as "pre-default".

The biggest mistake small business owners tend to make during the pre-default period is ignoring the imminent financial tidal wave because they unreasonably believe that a miracle correction will set things straight. However, if the issue is acknowledged quickly at the outset, there are more options available to correct the situation. In addition, pre-default solutions are generally easier to impose and less costly than after the "tidal wave" hits.

Our attorneys can help you to avoid complex, costly, formal, and public bankruptcy proceedings when financial hardship arises.



Chapter 7 bankruptcy


Individuals who are overwhelmed with personal debt may opt to file a Chapter 7 bankruptcy. As your counselor, our legal team can help you determine if this is the best course of action or if there is a better way to turn things around. We can also relieve you of those embarrassing and hurtful collection calls and help put you on the path of financial health.