Debt relief is a growing concern for individuals and businesses in Outagamie. Financial challenges can arise at any time no matter whether it’s a business, an individual or a municipality. While some view bankruptcy in negative terms, in reality it’s a strategy that can be used to clear debts and restart a life and a business. Often, Chapter 7 and other kinds of bankruptcies are the only way to get out of debt and get back on sound financial footing.
A school that has been having financial difficulties is considering filing for bankruptcy. Citing reduced enrollment, the school board decided that it would be best to close. In addition to the lower enrollment, donations had also dropped. Parents were notified via letter that the decision to close had been made and that bankruptcy was under consideration. If the school does decide to file for Chapter 7, a trustee is expected to be named to oversee the liquidation of assets. Creditors seeking repayment will need to file claims. They will be prioritized by the court and the trustee as to how much they will receive.
Whether it’s an individual or couple seeking a fresh start or a business that has faltered, there are important factors that come into play when making this serious life decision of filing for bankruptcy. There are many options to think about. When there is a significant amount of unsecured debt and a problem meeting monthly payments, Chapter 7 might be the most preferable option. For those who have equity in property such as a home, make a consistent income and are not able to meet monthly payments, Chapter 13 might be a better choice. Understanding the different options can simplify the entire process.
In the case of the school, their lack of enrollment combined with accrued debts led to the decision to close. They are in the process of thinking about Chapter 7 to provide debt relief. No matter the situation for an individual, family or business, making informed decisions is a smart move.
Source:Â WBAY, “Wisconsin International School Considers Filing for Bankruptcy,” July 7, 2014
