Advantages and disadvantages of liquidating the assets
Reaffirm and reaffirmation agreement are terms that are described in the Bankruptcy Glossary.
One of the primary reasons that people choose a chapter 7 bankruptcy if they qualify under bankruptcy law and if they can afford the monthly payments on the items that they want to keep is the fact that a person can bring his/her credit score up much more quickly than if that same person filed a chapter 13 case, because he/she completes the bankruptcy case so quickly.
For example, suppose that a common stockholder owns 0.5% of the firm in question.
If the firm has 0,000 to pay to its common shareholders post liquidation, this owner would receive a cash payment of 0.
If a shareholder owns preferred shares, he or she will have an increased chance of receiving a payment upon liquidation because this class of ownership has a higher claim on assets.
(See also: ) Investors should consider the possibility of bankruptcy when evaluating potential investments.
Thus, a complete review of each client’s debts must be made to determine what debts, if any, will remain after discharge.
The key word is student loans (thus, a review of your situation to determine if your student loans or taxes can be discharged is important.) The ability to discharge such debts as taxes and student loans depends upon the age of the loan and numerous other factors.
suppliers and utility companies), bondholders, preferred shareholders and, finally, common shareholders.
The common shareholders are last because they have a residual claim on the assets in the firm and are a tier below the preferred stock classification.
This year, numerous publicly listed companies, especially in the retail sector, have filed for bankruptcy.
In that event, the company's shareholders may be entitled to a portion of the liquidated assets, depending on which shares they hold and how much liquid assets are left over.