Tag Archives: unsecured debts
Bankruptcy Options for Small Businesses in Financial Distress
Navigating financial challenges is a common part of running a small business. But when the burden of debt becomes too heavy to bear, owners have legal alternatives to shutting down the enterprise. The primary bankruptcy options that allow small businesses to stay in operation are Chapter 11 and Chapter 13. Which option is best suited […]
Pros and Cons of Debt Settlement Instead of Bankruptcy
Consumers who are overwhelmed by debt and cannot make their payments may choose between filing bankruptcy or settling and consolidating their debts privately. Each of these measures has advantages and disadvantages that should be carefully considered before deciding which path to take. Debt settlement and consolidation require negotiation with creditors. This can be done directly […]
Using Lien Stripping to Reduce Secured Debt in Chapter 13
In a Chapter 13 bankruptcy, unsecured debts are discharged after successful completion of a partial repayment plan. However, secured debts — those based on mortgages and other liens — remain in force. Fortunately, there is procedure called lien stripping that allows you to convert some mortgage debts to unsecured ones and thus to discharge them. […]
