More and more people are filing for bankruptcy yearly. This fact makes the creditors more careful when choosing who to lend money to. As a creditor, if you are not careful and do not take the necessary measures to secure the money you lend out to others, your chances of losing it rise if they file for a chapter 7 bankruptcy. In chapter 7, any unsecured loans he had are dismissed and only his unsecured property can be used to pay the lender. However, in chapter 13, the customer will pay what is owed but he will have to re-organize himself and pay you at his own pace, depending on his finances. This type of payment usually takes a lot longer.
Bankruptcy Lawyers in Marion IN warn people to be alert and withdraw their services whenever they sense that their customers are on the verge of becoming bankrupt. If for instance you are conducting business with a company whereby you give them credit on items such as vehicles, watch out for the following warning signs that their credit score is running low.
Changing accounts
It is normal for one to change his account but as a business man, you should be more alert if your customer changes his account. He may do this because of a number of reasons. One of them being that the previous account might have been closed if it had banking problems or other creditors might have had it frozen if they were not getting their dues.
Payments from different accounts
A person running various projects may opt to have different bank accounts for each project. However, if you get payment from different accounts, it may indicate that your debtor is putting his money and assets in different accounts to be on the safe side if other creditors he owes are threatening him.
Late payments
If the customer is delaying his payments, it may be because that he is struggling financially. Lawyers Marion IN advise you not to give him more supplies without previous payments.
Lawyers from Ripke Law PC boasts over 13 years of bankruptcy experience. For more information on their services, visit the website.
