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. Creditors that have secured claim normally own alien on some property of the business while unsecured creditors claim is not secured by any liens.
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. Since some companies give their employees credit cards which do not reflect on their personal credit report, it is unlikely that it will affect your credit score. When running small businesses, the corporate card will be incorporated with your credit report, payment history, balances and delicacies which be shown on the 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 not bought off the shelf so the corporation should find a reputable credit company to work on the agreement. Better business bureau website give customers feedback about the services provided by various businesses and attorneys to understand what they bring to the table. The state’s bar website has necessary information like the period the bankruptcy attorney has been practicing they are more professionals and what areas they focus on most.
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. Several bankruptcy attorneys offer a free consultation where the reviewer kings and you should be prepared with your documents and income before attending the meeting.
The court has many cases to deal with which is why they will need a trustee who will meet you the attorney you hired after 20-40 days. People usually, trust referrals from people believe like their friends and family which makes it easy to identify a qualified and professional lawyer you can work with.