These are tough times, and the many business owners are facing severe hardships. Government loans and grants are keeping some afloat for the time being, and that is good news. The prospect of additional government loans to small businesses also can help. The prospect of bankruptcy looms in the background. As with most business decisions, understanding your options is the first and most important thing to do.
For debtors drowning in bills, bankruptcy can seem like the only solution. But they must first exhaust other possibilities first:
Every year, eager entrepreneurs try to launch new businesses, hoping to become the next Microsoft or Starbucks. However, a great many will not succeed, as debts pile up and customers fail to materialize. In those cases, bankruptcy may be the only way out. It doesn't have to be the end of the world, but to make the process go as smoothly and quickly as possible, owners should know the basics of how it works.
Funds in an IRA aren't subject to creditors' claims — it's said they are exempt from inclusion in the bankruptcy estate. This rule is meant to help debtors who go through bankruptcy to get a fresh start. But when an IRA owner dies and the account is inherited and that person files for bankruptcy, does the rule still hold?
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