Filing For Bankruptcy A Second Time

2019/02/25

When the financial condition of an individual is on a decline and the pressure of debts becomes overwhelming, then one is forced to think of bankruptcy, in order to get relief from the adverse financial tensions.

But, after passage of time, if the finances again started to slide down you will have to plan for saving whatever you’re left with. You may apply for a second bankruptcy with the court of law, in order to seek protection.

You will have to prove that it is the last resort for your and there is no other way out.  Here’s more information on second bankruptcy.

Second Bankruptcy for Business

If you are unable to pull on the business and wish to save the risks of the investors and the creditors, you may consult with your attorney for second bankruptcy.

If you decide on filling for the second bankruptcy then you should plead the case with the help of your counsel and must promptly reply to all the queries from the court. You should pursue the rules set by the court of law and dedicatedly follow the second bankruptcy to recover from the adverse conditions.

When going in for a second bankruptcy you must discuss the financial conditions of the business with your accountant and the bank as well. You must be aware of the financial conditions of the business and must you go on checking the financial reports from time to time.

You will need to show how, what and when you took actions to overcome the adverse trends of the business. These are some things that the bankruptcy court will want to find out when you seek second bankruptcy.

Second bankruptcy has a binding of six years as per the bankruptcy law. To declare a second bankruptcy you may have to prove that all your efforts to organize the financial conditions of your business have failed.

After showing that none of the options are working for your business, you have to prove that second bankruptcy has been adopted as the last option, after having tried all other rescue options.

The business owner has to detail out the efforts made towards making the business flourish, after first bankruptcy. You will have to prove the hard work done to succeed after the first bankruptcy and how and why it failed to succeed.

Personal Second Bankruptcy

To begin with you should make an inventory of income and expenses. Write out all possible expenses, household as well as payments done monthly or quarterly.

Not taking charge of your finances, even after a bankruptcy, will leave second bankruptcy as the last option for you to recover from your adverse financial conditions. Again you must wait six years to apply for a second bankruptcy, if you have already had one.

Discuss with your attorney, about the second bankruptcy as an inevitable option to come out of the situation. You should consider the other possibilities, if any, as suggested by the attorney. It is you who has to decide, ultimately.

You may file for second bankruptcy if you are convinced with this decision and when there is absolutely no other way out. You should effectively plead the case with the help of the attorney and keep your replies ready for all the queries.

Whenever faced with a situation where second bankruptcy seems inevitable, one must dig up alternatives since a second bankruptcy will cause serious damage to your credit report.

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