Role of a Financial Consultant in Santa Rosa and Sacramento, CA

Posted by Sugarmancompany on October 4th, 2023

Running the day-to-day business may become too challenging for comfort many a time. Both small and big businesses may have to borrow money with their debt escalating by the day. Filing business bankruptcy in Oakland and San Francisco, CA, may be the only way out. The company management or the business owner needs to turn to a financial expert. This will enable them to gain perspective and understand the associated advantages, including being left alone by the creditors.

Going through the related information is essential after being convinced that bankruptcy is the best way forward. Moreover, the financial advisor is sure to be knowledgeable enough to offer alternatives based on the circumstances. The debtor will surely be confused by the different bankruptcy options available to American citizens. Having a financial consultant check the needs and offer advice is the right way to proceed with the bankruptcy filing process.

Some of the reasons to go ahead and file for bankruptcy include the following:-

The process of filing for bankruptcy for small business entities has been made smooth and hassle-free courtesy of the “Small Business Reorganization Act “that became law in 2019. The provisions offered to business entities struggling for funds are the following opportunities:

· Streamlining the Reorganization process- The associated costs for obtaining the procedure have been removed with the requirements of a corporate reorganization made easier for smaller entities. Such business owners can submit their restructure plan all the more quickly, with acceptance being a matter of days.

· Trustee Appointment- It is necessary for the small business to appoint a trustee when filing for bankruptcy. This trustee must assist the debtor in developing a reorganization plan. Facilitating the new plan and monitoring the fulfillment of the plan is also the trustee’s responsibility.

· Reorganization Plan- The Reorganization Act also empowers the court to approve the debtor’s plan when it meets all the specifications. The legal authorities will not entertain the creditor who objects to such a plan.

· Discharge Limitations- The court will also allow the debtor to pay off the dues within a period of 3 to 5 years. The business entity will be absolved of the liability after repayment of dues. There are a few exceptions to this rule, however.

· Modification of Home Mortgage- The business owner is free to modify the existing mortgage on the residence even after filing for business bankruptcy. This rule will remain active even if the business owner has secured the home loan in connection with the business.

· Administrative Expenses-There are no administrative expenses claims to be paid by the debtor. The post-petition service and goods claims are waived as well.

Hiring the right financial consultant in Santa Rosa and Sacramento, CA, is paramount. Seeking out the services of a firm with a proven track record of problem-solving for individuals and business entities is the best way to resolve all financial issues.