Bankruptcy: Should you Recommend It to Your Long-Term Under-Employed Clients?

Learning Objectives

• To explain how to assist clients in knowing whether bankruptcy might be right for them.
• To discuss how to explain to their clients a little bit about the bankruptcy process and timeline.
• To able to empathize with some of the moral baggage around the decision to file bankruptcy.
• To discuss the bankruptcy process.
• To analyze the tax aspect of bankruptcy.

While you are here, you can also view our Business valuation courses

Course Description

Consumers and businesses file for bankruptcy to seek protection from creditors and to reorganize or liquidate debts. Bankruptcy filings rise and fall with the economy. Surveys show that loss of income is the leading cause of consumer bankruptcies, followed by medical expenses and foreclosure.

Corporate bankruptcies, on the other hand, are often the result of several factors, including excessive debt, decreased demand, increased costs, lawsuits, or poor accounting practices. As an accountant, attorney, or other professional, you need to be able to discuss the process and different available courses of action with your clients.

Depending on the specifics of your business, filing for bankruptcy could provide a viable option for debt relief and a fresh financial start. However, it’s important to evaluate all restructuring options before deciding to file as creditors are often willing to work with debtors to settle their debts. Financial planning could also be a viable option to resolve financial issues outside of bankruptcy.

The following are the major topics covered in this CPE webinar:

• Why Do Bankruptcy Courts Exist?
• Famous Bankruptcies.
• Signs that your client is headed for trouble.
• Trusted sources of support.
• Process of filing for bankruptcy.
• The Means Test.
• What can go wrong in a 341 meeting with the trustee?
• Timeline of a Ch 7 Consumer or Small Business Bankruptcy.
• Cost of a Consumer Bankruptcy.

In this CPE course, speaker Paula Collins will discuss tips for professionals while dealing with clients who are in the process of bankruptcy.

We will discuss that professionals are the trusted source of support to clients as they are scared and have a lot of conflicting information, they want to have an idea about the process, tax implications, and cost of filing for bankruptcy.

Overview

• Bankruptcy filings are at all-time low

  3 mins
• Consumer and small-business bankruptcies still carry a lot of shame

  11 mins
• You can be a trusted source of support

  22 mins
• Your client will ask you about the process of filing for bankruptcy

  36 mins
• What can go wrong in a 341 meeting with the trustee?

  46 mins