Credit Counseling

If you find yourself in financial hardship due to loss of income, illness, divorce, etc., debt negotiation can work for you. Many people in financial hardship resort to bankruptcy as a means to get out of debt. Bankruptcy is public record and it ruins your credit for up to 10 years. You will fight for years to re- establish your credit and your creditors do not get paid the money due to them. In this case Everybody loses.

Let our team of credit professionals help you repair and rebuild your credit. It's time for you to get the loans you need, the car you want, or the home you've always dreamed of. 

BUILDING BUSINESS CREDIT

Having credit established for a business is key to its success. Throughout the history of a company the need for credit will most likely arise. Establishing the business’s credit should be started before the company needs it. No lending institution wants to lend money to a business in need of cash flow. As the business is establishing itself, it should start to establish it’s own credit history and profile in order to take on credit of it’s own. This is possible with a corporation or Limited Liability Company using their own tax identification number.

When using the officers and owners credit profiles they risk the chance of lowering their own personal credit scores. There are two reasons business owners should try not to use their personal guarantee on business credit. First, the individual signer is liable if the business cannot make the payments and second the credit obtained for the business can affect the person’s personal credit score.

There are several national retail companies that will issue credit to businesses based solely on the credit of the business. Very few banks will do this however without some very strict guidelines in place, such as age of the company and net worth.

Obtaining credit for a business is a process that should be established over time. The older the business the more options the business will have to build credit without the use of personal guarantees. It is not easy to build business credit on your own with out a great deal of time and research. The first step is to start building the credit early.

The most important thing to remember when obtaining business credit is to Look for the experts – If you want to be sure that you are setting up your business credit correctly, you should work with a company that is an expert in this field. MMN & ASSOCIATES can help any business, new or old, in establishing a solid credit profile

BUSINESS CREDIT CARDS

Business Owners across the country are seeking the "right" business credit card to meet their needs. It would be nice if we could provide an easy answer of the perfect business credit card. However, the business credit market is not easy to understand or find the perfect fit.

Most business owners also either have challenges on their personal credit or want to avoid putting more credit on their personal credit reports to keep it from lowering their good credit scores.

The best form of credit cards we at MMN & ASSOCIATES have found is trade credit. That is one business lending money to another business. Unless you are looking for money to make payroll, which in that case, start looking for another business, you are most likely going to use the money to buy some type of products or services. A large number of companies are willing to sell those same services and products by issuing your business credit, in the form of a credit card or on specific credit terms.


Chapter 7 Bankruptcy

Personal bankruptcy under Chapter 7

Personal Bankruptcy is the filing of a petition with the bankruptcy court to obtain protection from collection efforts of your creditors. It is normally triggered when an individual’s debts exceed current income and property. At the end of bankruptcy, some or all of the individual’s debts will be discharged.

Bankruptcy involves a Federal court proceeding in which the individual’s obligations are balanced against his or her creditor's rights. The individual’s hope is to reduce or eliminate the debt completely . The creditor's objective, on the other hand, is to collect as much of the debt as possible. The bankruptcy proceeding is the forum in which the debtor and the creditor resolve differences. A judge will ultimately decide what you still have to pay and what will be discharged.

Business Bankruptcy under chapter 7

Some companies are so far in debt or have other problems so serious that they can't continue their business operations. They are likely to "liquidate" and file under Chapter 7. Their assets are sold for cash by a court appointed trustee. Administrative and legal expenses are paid first, and the remainder goes to creditors. Secured creditors will have their collateral returned to them. If the value of the collateral is not sufficient to repay them in full, they will be grouped with other unsecured creditors for the rest of their claim. Bondholders, and other unsecured creditors, will be notified of the Chapter 7, and should file a claim in case there's money left for them to receive a payment.

Stockholders do not have to be notified of the Chapter 7 case because they generally don't receive anything in return for their investment. But, in the unlikely event that creditors are paid in full, stockholders will be notified and given an opportunity to file claims.

Chapter 7 involves attorneys, a large amount of paper work, court appearances and there is no guarantee that your debts will be discharged. You are however, guaranteed to ruin your credit for up to 10 years and be the worst credit risk to future lenders and employers.

 Chapter 11 Bankruptcy

What is Chapter 11 bankruptcy?

- Federal bankruptcy laws govern how companies go out of business or recover from crippling debt. A bankrupt company, the "debtor," might use Chapter 11 of the Bankruptcy Code to "reorganize" its business and try to become profitable again. Management continues to run the day-to-day business operations but all significant business decisions must be approved by a bankruptcy court.

Under Chapter 7 bankruptcy, the company stops all operations and goes completely out of business. A trustee is appointed to "liquidate" (sell) the company's assets and the money is used to pay off the debt, which may include debts to creditors and investors.

The investors who take the least risk are paid first. For example, secured creditors take less risk because the credit that they extend is usually backed by collateral, such as a mortgage or other assets of the company. They know they will get paid first if the company declares bankruptcy.

Bondholders have a greater potential for recovering their losses than stockholders, because bonds represent the debt of the company and the company has agreed to pay bondholders interest and to return their principal. Stockholders own the company, and take greater risk. They could make more money if the company does well, but they could lose money if the company does poorly. The owners are last in line to be repaid if the company fails. Bankruptcy laws determine the order of payment.

Chapter 11 involves attorneys, a large amount of paper work, court appearances and there is no guarantee that your debts will be discharged. You are however, guaranteed to ruin your credit for up to 10 years and be the worst credit risk to future lenders and employers.

 Chapter 13 Bankruptcy

What is Chapter 13 bankruptcy?

Chapter 13 - The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.) Chapter 13 will severely impact your credit rating.

After filing a chapter 13 bankruptcy it will be difficult to obtain any line of credit, including credit cards, loans, even rental and lease agreements.

Chapter 13 involves attorneys, a large amount of paper work, court appearances and there is no assurances as to how much you will need to pay back. You are however, guaranteed to ruin your credit for up to 10 years and be the worst credit risk to future lenders and employers.

Don't let debt take another day of your life. Get relief for yourself - and for those who depend upon you. Call now for a personal financial consultation by an accredited counselor. It's free