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Your Ultimate Guide To The Bankruptcy Service

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Unfortunately in today’s economy, individuals and companies have been forced into filing bankruptcy left, right and center. In the US alone, over the past few months we have witnessed a surge in Chapter 11 bankruptcies by companies who we thought were going strong. Many unfortunate circumstances such as banks and building societies making stricter conditions and hiking the interest repayment rates on loans have seen several companies fall by the wayside.

While bankruptcy may be an option or a must for some companies, it is not without complications. That’s why several companies who have gone bust have turned to a bankruptcy service for help with making their bankruptcy claim. In a nutshell, a bankruptcy service oversees the administration side of a bankruptcy claim and it is a much cheaper option that that of a bankruptcy attorney. While on the face of it one might think that using a service such as this can only worsen a company’s financial situation, the fact is that experts are called for when it comes to filing bankruptcy.

If you are wondering what bankruptcy services do, then please allow me to explain. When a company legally declares that they are unable to repay their debts they file for bankruptcy. Naturally, the company’s creditors are going to want their money back in some shape or form and to this end they will do what they can to make this happen. The main role of the bankruptcy preparation service is to notify all the company’s creditors that their client has claimed bankruptcy – this is a legal requirement under the US bankruptcy law. A debtor cannot inform their creditor(s) that they will be claiming bankruptcy. If there are any company assets that can be liquidated then it will be the responsibility of the bankruptcy preparation service to have this carried out and they will then disburse the funds among the creditors. The bankruptcy preparation service cannot represent a client in the bankruptcy court or provide legal advice however; their service is still a very useful one.