The Relationship between Corporate 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.
It is important to know the type of corporate credit card you have so you can prepare yourself in case the company goes into bankruptcy so your personal credit score will not be affected. Some companies may give their employees credit cards and may not show up on your personal credit report or will not 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. Consider the experience of the bankruptcy attorney before hiring them since they will understand your situation especially if they handled similar cases in the past. When looking for bankruptcy lawyer consider a law firm which has low ratio of support staff for the attorneys since it means there are not many paralegals that handle the bankruptcy cases.
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.
The connection between the attorney and the client should be mutual and respectful which will be determined by the first meeting. 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.
Once you have file for bankruptcy you will meet with your attorney for scheduled and planned purposes sales it takes a month to participate in a meeting with their bankruptcy trustee and their 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.