Six Tips to Avoid Involuntary Bankruptcy
A San Jose bankruptcy attorney gives some tips to avoid involuntary bankruptcy.
If you are looking to avoid involuntary bankruptcy, there are several things you can do to avoid it. Some are just common sense while others are not.
1. Pay your bills on time. This is an obvious step to avoid involuntary bankruptcy, but it is not always possible, especially if a business is experiencing tough times.
2. Try to avoid alienating creditors. Creditors want their money and are willing to work with you. Small businesses often have a hard time making loans, especially early in their life.
3. Try not to have preferred payees. Businesses do not like being put off for other accounts, but it does happen sometimes. Oddly, this behavior can prevent a person from being forced to go through involuntary bankruptcy proceedings.
4. If you do find yourself facing involuntary bankruptcy, find a good lawyer. They can find a way to get a client out of proceedings, particularly if a creditor broke the law.
5. Pay attention to aggressive creditors. A lender cannot engage in aggressive practices to force someone into these proceedings. Involuntary bankruptcy requires a debtor to face all his creditors at once.
6. Go through your records to make sure they are up-to-date. If you can prove that there was no reason to bring the proceedings to court, you should do so.
If you would like more information on this topic or other bankruptcy topics, please contact our San Jose office at 408.279.2288 or 1800.941.6730. We at Sagaria Law can connect you with one our our experienced San Jose bankruptcy attorneys. We have bankruptcy attorneys located throughout California and Oregon to assist you with your bankruptcy questions. If you need assistance regarding a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, a cram down, stopping a foreclosure or wage garnishment, asset protection, discharging debt, etc. we can help! Please contact us to receive a free consultation or visit our website at www.sagarialaw.com to request an in-person consultation with an experienced bankruptcy attorney. We have an exceptional team of bankruptcy lawyers, bankruptcy client care specialists and bankruptcy staff supporting San Jose.
