There are various reasons for the need to perform a bankruptcy search.
Before you do a bankruptcy search, and be assured of success, you need to understand what kind of bankruptcy searches there are available . When a company is hiring someone for a position that requires handling of money and finances, a bankruptcy search becomes essential. The federal bankruptcy search gives all the bankruptcy information in the file of the applicant. A company is obligated to be concerned in its candidates’ financial accountability. A check on the bankruptcy history in necessary to have an insight into the candidate’s finance history.
Databaserecords helps you learn about the candidate’s financial history so that you can make informed decisions.
Below are some of the ideal and necessary searches for companies:
A. Searches on potential employees handling of financial matters.
B. Current staff in the financial and banking operations.
C. CPAs need to know the financial status of their clients to avoid preparing incomplete or inaccurate returns and reports.
D. C-level executives
Usually, the search results come after two days to five business days depending on the search criteria and depth.
If you are new to the world of financial investigations it will help you to know that there are different types of bankruptcy cases. All bankruptcy cases fall under one three categories, which are filed and settled in a bankruptcy court.
• Chapter 7 bankruptcy search case
This case includes the debtor and the creditor, where the debtor must have a source of income because they are expected to pay the creditor. In circumstances where the debtor cannot pay off their debt, they are forced to sell their assets to pay the debt. This is usually done under the close supervision of the court.
• Chapter 13
This is more similar to the chapter 7 case, but the difference is that the debtor is given a time frame of three to five years to pay their debt. The advantage of this case is that you do not need to sell your assets, and until you complete paying the debt, you are not discharged from the case.
• Chapter 11
This applies to commercial entities. It is known as reorganization because even though you will pay the debt, the company will need to reorganize the control of the company. Contracts can be terminated, with the permission of the bankruptcy Court, as the company plans to make the payment.
Should bankruptcy search be done in conveyancing?:
Yes, a bankruptcy search should be done in conveyancing. There are various reasons behind carrying out a bankruptcy search on the conveyance process. Usually, this is carried out by the purchasing party, as due diligence, and as part of the conveyancing process purposely to establish whether they are or about to be bankrupt. This will be for the benefit of the lender. However, where the purchaser comes with cash for the item they are buying, bankruptcy search is not necessary, but advisable.
To sum up, bankruptcy search is essential for both individuals and companies. However, understanding what type of search you want to perform is key to your success. The process of bankruptcy is a legal one and, at some point, will require the involvement of the court. With a bankruptcy search, you do not need to go to court because you will find all the information online.
Interested in bankruptcy search service?
Databaserecords.com has got your back and you can get the service at a relatively small fee….compared to the cost of going into a transaction “blind” and hoping for a good outcome.