Why do you need a bankruptcy certificate?

Why do you need a bankruptcy certificate?

On Behalf of | May 17, 2022 | Bankruptcy |

Your Maryland business may be experiencing some very serious turbulence. If the debts that you owe are beginning to outweigh your profits, it may be time for a change. You may consider restructuring your business or even closing it down. To do either of these things, you may first be required to make a major decision.

You may need to apply for a certificate

If you decide to go the route of applying for bankruptcy, you’ll need to make a couple of crucial choices. The first move you will need to make is to obtain a bankruptcy certificate. This is a special legal document that signifies a number of things. Your certificate is proof that you are eligible to file for your choice of bankruptcy style.

To be eligible, you will need to complete a full course of credit counseling. You will also have to pass an additional course of debtor education. Once you have done both of these things, you will receive your bankruptcy certificate. You can then make the choice of whether or not to go ahead with this action.

What happens after you are certified

There are many different strategies that you can adopt in order to get your business safely out of crippling debt. Bankruptcy need not necessarily be the only method that you consider. If you decide to go this route, you will first need to get up to speed. This is the point of credit education and debtor counseling.

After you have completed both courses of education, you can go on to make your final decision. It’s crucial to speak to a financial advisor before you do so. You should be aware that a bankruptcy, once filed, can stay on your record for a period of up to 10 years.