JG Wentworth Bankruptcy Filing Tips for Chapter 7 or 11
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Posted On :
Sep-21-2011
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Article Word Count :
454
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For JG Wentworth, bankruptcy filing is understandably an issue that many of its clients are concerned about. Most people have a hard time choosing between Chapter 7 and Chapter 11 bankruptcy. Chapter 7 bankruptcy is also referred to as liquidation bankruptcy because it liquidates all assets of the person filing for bankruptcy.
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For JG Wentworth, bankruptcy filing is understandably an issue that many of its clients are concerned about. Most people have a hard time choosing between Chapter 7 and Chapter 11 bankruptcy. Chapter 7 bankruptcy is also referred to as liquidation bankruptcy because it liquidates all assets of the person filing for bankruptcy. Profit from the sale is then divided according to absolute priority if there is more than one creditor. Any remaining profit is divided between entitled shareholders. Only what is left from those proceeds is given back to the bankrupt individual. In most cases, however, there is rarely a chance for people to recover any such proceeds. With Chapter 11, which is also known as rehabilitation bankruptcy, people or organizations still have a chance to recover their finances. Assets are not liquidated but creditors and shareholders will still get paid. This time, however, a restructuring plan is provided and which involves helping the individual or organization to get back on their feet while at the same time involving a detailed step-by-step plan for repaying creditors.
Discharge of debts is one of the significant differences between Chapter 7 and 11 cases. With Chapter 7, there is a possibility that remaining debts will be discharged if all the person’s assets had been sold off and nothing remains to pay off the rest of his debt. With Chapter 11, no debts will be discharged. The debtor is still obliged to pay all of them, only this time he is given more leeway to operate his business and come up with the money needed to settle his financial obligations. One other key difference between Chapter 7 and 11 is how it will appear on one’s credit report. People will generally have a longer time to wait before records of their filing for Chapter 7 will be eliminated from their credit report. Aside from having a shorter time to wait for filing for Chapter 11 to be deleted from their record, creditors tend to have fewer concerns where Chapter 11 involved. After all, with Chapter 11, a person or organization still retains ownership of their assets. They thus have a better chance of recovering from their current financial problems.
In any case, for JG Wentworth, bankruptcy is often times a necessary event that happens during a person’s career or a business’s existence. Bankruptcy is simply a financial state and should not be considered as a reflection of a person’s skills, knowledge, or expertise in his chosen profession or field. Bankruptcy is, in the end, just one of the many forms of financial assistance the government provides. It is not much different from the grants that the governments offer to small businesses and community organizations.
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Article Source :
http://www.articleseen.com/Article_JG Wentworth Bankruptcy Filing Tips for Chapter 7 or 11_84020.aspx
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Author Resource :
If a person does decide to sell his structured settlement, JG Wentworth, bankruptcy consultant, says that it is critical to choose a company they can readily trust. They must look for companies that have long been established and are not in any way lacking in experience. They must make sure that the entire transaction is legal.
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Keywords :
JG Wentworth Bankruptcy, JG Wentworth,
Category :
Business
:
Business
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