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. Every creditors claim can be secured or unsecured claims where a secure claim is made by creditors that are secured by lien or property of the business.
Some corporate credit cards may affect your personal credit score, but it depends on the type of corporate card you have. Credit card is not revealed in your credit report, you will not have to worry about your credit score getting affected after a bankruptcy. People who run small businesses should check the documents they sign before accepting the credit card so that they are corporate card will not affect they are personal credit score.
Corporate credit cards are issued to the corporation and not its owners and may require the companies’ principals to sign a personal guarantee. 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.
Corporations normally need to look for a good credit company when they need corporate credit cards because it is hard to find them on the shelf. 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. The client should be well equipped with the company’s records and bank statements so the lawyer can review the case during the initial consultations.
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.