In this fast-paced financial world, plenty of insurance products available will protect you from getting into the deep mire of financial trouble that may lead you to the unpleasant path of bankruptcy. Some of the insurance companies offer specialized bankruptcy insurance policies. Such insurance policies will shield you and your business against the bankruptcy risks.
The Risks Covered By Bankruptcy Insurance
There are several causes that can lead your business to certain unexpected huge losses. Such causes may include the following:
•Business interruptions
•Lawsuits by employees or customers
•Customer injuries
•And other litigations
All business losses caused by any such reason or reasons are covered under the bankruptcy insurance policies. The bankruptcy insurance mainly covers the following for a self-employed person.
•Depending upon your specific bankruptcy situation, the bankruptcy insurance may provide you the protection of your rights to child benefit and health care. But, you can get such protection for as much as four quarters. What is more, you do not even need to pay the contributions that year.
•If you have taken a bankruptcy insurance policy and you become bankrupt, you may also be provided a monthly allowance for the first six months. Depending upon your specific bankruptcy situation, this period may be less or more.
Who Can Apply For Bankruptcy Insurance?
Following people can apply for bankruptcy insurance.
•All self-employed persons who were granted bankruptcy. But, here, you must note that in order to be eligible to request for the bankruptcy insurance, personal bankruptcy is allowed only one time during the career. If you have faced bankruptcy a couple of times during your entire career so far, you will not be able to take advantage of the various bankruptcy insurance policies.
•All self-employed persons who have not been declared as bankrupt but are not able to pay off their debts because of the huge losses in their business venture are also eligible for bankruptcy insurance.
•If bankruptcy has been declared for a commercial company, the working partners, administrators and business managers can also apply for bankruptcy insurance.
Who Is Not Eligible For Bankruptcy Insurance?
If any of these things apply to you, you will not be eligible to take advantage of the bankruptcy insurance policies.
•You are a self-employed person and you have become bankrupt more than one time during your career.
•A criminal court has convicted you because of your bankruptcy.
•You are a convict of bankruptcy fraud. Bankruptcy fraud is the manipulation and concealment of the facts in order to organize your incapability to pay off the debts you owe to the various creditors.
How To Request For Bankruptcy Insurance
Requesting for bankruptcy insurance is easy. You can request the same from your social security fund. While you are requesting for bankruptcy insurance, make sure that you keep in mind the following things.
•You will have to submit your request before the end of the quarter following the quarter in which in which you were declared as bankrupt. For example, if your bankruptcy was declared on Mar 20, 2006, you will have to submit your request for the bankruptcy insurance before Jun 30th 2006.
•Likewsie, you will have to submit your request before the end of the quarter following the quarter in which in which your business activities were suspended because of your genuine incapability to pay of the debts.
This way, we can see that the more bankruptcy information you have, the better you can take advantage from the various bankruptcy services.