Exploring Court Opinion On Personally Financing A Business
If you file for bankruptcy, having an idea of what you are getting into with the courts can help position you for success. In this article, we explore:
- General court opinion on personally financing a business.
- How this has changed over recent history.
- What exceptions to the rule there are.
What Is The General Court Opinion On Personally Financing A Business?
The overall court opinion on personally financing a business is that of indifference to personal circumstances when it comes to bankruptcy filings. Nowadays, most individuals who file for bankruptcy face challenging situations.
Over the past 30 to 35 years, most individuals who file for bankruptcy do so because they are on legitimate hard financial times due to a significant salary cut or job loss, or incur costs due to catastrophic injuries or medical situations and do not have insurance. In the past, many gamed the system, knowing they could spend recklessly and then file for bankruptcy without consequences.
Judges do show some sympathy for certain, rare cases. For example, a judge may show some leniency to someone who has not been able to pay their mortgage for two and a half years due to disability and lack of disability payments but be less empathetic toward someone who has been earning $120,000 and simply chose not to pay their mortgage for five years. Nonetheless, anything is possible since the bankruptcy business is a cash-and-carry business.
For more information on Court Opinion On Personally Financing A Business, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (978) 922-8440 today.