All Should Know About Bankruptcy and Corporate Credit Cards
When a business files for bankruptcy, the court will appoint a trustee who will sell the company’s assets for cash and distribute the proceeds to the creditors and check it out!. Trustees appointed by the court have the power to operate businesses and even handle different tasks in your company for a short period. Secured creditors have the chance to get there collaterals returned while unsecured creditors do not have a lien on the business’s property.
In some cases personal credit scores are affected when there is bankruptcy in this company so you should talk to a professional regarding the corporate card you have. Credit card is not revealed in your credit report, you will not have to worry about your credit score getting affected after a bankruptcy. People who run small businesses should check the documents they sign before accepting the credit card so that they are corporate card will not affect they are personal credit score.
The principals of the company might sign a personal guarantee when they want corporate credit card since it is issued to the corporation and not the owners. When looking for a bankruptcy attorney examine how long they have been in the industry and their cases they have handled which are similar. Ensure you are working with be the one to represent you during the case and does not have a lot of support staff who will do the work for them when they sign off the paperwork.
Corporate credit cards are special days the businesses who have to look for credit card companies which will create one of them based on the terms and agreements they have. Better business bureau website give customers feedback about the services provided by various businesses and attorneys to understand what they bring to the table. You will know the expertise of your bankruptcy lawyer the standard information at the state’s bar website and the duration they have been in the industry.
Have a personal deliberation with an attorney to find out if you can create a good relationship and if they are serious about their work. The client should be well equipped with the company’s records and bank statements so the lawyer can review the case during the initial consultations.
Bankruptcy cases do not need frequent meetings with your attorney compared to other cases which are why they should be planned and schedule so it will take a month to meet with the court trustee and your attorney. The law firms handle bankruptcy cases are many, and it will confuse clients on what they need, but you can seek out help from professionals and people you trust to refer the best bankruptcy lawyer.
Attributed by: Resources