HOW IT WORKS
How our programs work to help you PREVENT a Bankruptcy filing
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Our services are designed to assist Real estate investors and Business owners / Non-publicly traded companies manage their current debt load based on current cash flow. Regardless of the circumstances when you originally obtained your loan the business environment may have changed or perhaps your projections of cash flow and or growth fell short; we can restructure your secured and unsecured debts. Many lenders require a personal guarantee to be signed by the business owner and majority shareholders in addition to the companies assets as a condition for the loan.
When businesses experience a down cycle due to economic downturn despite their best efforts for growth their existing debts can have a crushing impact on their bottom line, leading to non payment of employee salaries, payment on existing debts and most of the time no funds are even left for the owners to even draw a salary for themselves. This creates a vicious circle of distrust by the employees leading to unproductivity or attendance all together furthering the demise of cash flow. NOW!
You have a solution thru 711Rescue.com that provides an alternative to Chapter 7 and to Chapter 11 on personal and corporate guarantee debt.
Our firm thoroughly reviews and assesses your complete personal and corporate financial standing as it relates to your ability to timely pay the existing debts. We then create a payment model on a 2.0X debt coverage ratio and present our proposal to PURCHASE your existing secured debt from the current lender(s). Once we have successfully obtained your debt at a large discount, we help you establish a new payment history with us to be reported to the three credit bureaus Experian, Equifax, Transunion and to Dunn & Bradstreet.
As your personal FICO and the company’s PAYDEX scores improve, within 1 year’s time we then refinance your debt with a conventional or alternative lender to EXIT this process.
DIFFERENT TYPES OF BANKRUPTCY FILINGS CHART.
| Chapter 7 | Chapter 11 | Chapter 12 | ||
| Type of Bankruptcy: | Liquidation | Reorganization | Debt Adjustment for Family Farmers or Fishermen | |
| Residency: | Residency, domicile, business or assets in United States. | |||
| Citizenship: | U.S. citizenship is not required, but you must have a valid Social Security number or IRS Tax ID number. | |||
| Credit Counseling: | Must be completed within 180 days prior to filing bankruptcy (some exceptions apply). Required for individuals, not corporate entities. | |||
| Minimum Debts: | None. | None. | Farmers: 50% of non-home-mortgage debt must be farm-related. Fishermen: 80% of non-home-mortgage debt must be fishing-related. | |
| Maximum Debts (adjusted every 3 years): | None. | None. | Farmers: $3,795,650 total debt. Fishermen: $1,757,475 total debt. | |
| Debtor Status: | Individuals or corporate entities, not railroads, banks or insurance companies. | Individuals, corporate entities and railroads. | Individuals or corporate entities; must family farmer or family fisherman. | |
| Income Requirements: | Pass Income Test. | None. | Regular annual income and 50% of income from farming/fishing operation. | |
| Effect of Dismissal of Prior Bankruptcy: | You are ineligible to file bankruptcy if your prior bankruptcy case was dismissed in the prior 180 days due to 1) your failed to appear in court or failed to follow the Court’s orders or 2) you voluntarily dismissed the prior case after a creditor obtained relief from the automatic stay. | |||
| Filling Fee: | $306 | $1,046 | $246 | |
| Fee Waiver/Installments (requires Court approval): | May be waived & may be paid installments up to 90 days. | May be paid in installments up to 90 days. | May be paid in installments up to 45 days. | |
| Chapter 9 | Municipal Bankruptcy |
|---|---|
| Type of Bankruptcy: | Reorganization for municipalities |
| Eligible Entities: | Cities, towns, villages, counties, taxing districts, municipal utilities, and school districts |
| Purpose: | To provide a financially-distressed municipality protection from creditors while it develops and negotiates a plan for adjusting its debts. |
| Rare Usage: | Chapter 9 is relatively rare compared to other forms of bankruptcy. |
| State Authorization: | A municipality must be specifically authorized by state law to file for Chapter 9. |
| Status of debt | Performing or Non-Performing |
| Insolvency Requirement: | The municipality must be insolvent, unable to pay its debts as they come due. |
| Good Faith Negotiation: | The municipality must demonstrate that it has negotiated in good faith with creditors or that such negotiation is impracticable. |
| Debt Adjustment Plan: | The municipality must develop a plan for debt adjustment, which must be approved by the bankruptcy court. |
| Limited Court Role: | The court’s role is limited due to the 10th Amendment of the U.S. Constitution, which reserves certain powers to the states. |
| No Liquidation: | Unlike Chapter 7, there is no provision for liquidation of the municipality’s assets. |
| Automatic Stay: | Filing provides an automatic stay against most creditor actions. |
| Services Continuation: | Essential municipal services continue during the bankruptcy process. |
| Filing Fee: | As of 2021, the filing fee was $1,167, but this is subject to change. |
| Fee Waiver/Installments (requires Court approval): | None |