Bankruptcy Lawyers are professionals who have been trained in financial law and bankruptcy. They can assist you during a time of financial difficulty with the knowledge they’ve amassed over the years.
In this article, you’ll learn more about how to take advantage of this resource in your business.
How Do Bankruptcy Lawyers Help Businesses
If you are facing financial difficulties that could lead to bankruptcy, a bankruptcy lawyer can help. Bankruptcy is a legal process that allows businesses and individuals to reorganize their finances and get back on track. A bankruptcy lawyer can provide advice and help with filing paperwork, negotiating with creditors, and more.
Bankruptcy can be an important step for businesses in several different situations. If you are facing significant debt and have little hope of ever paying it off, bankruptcy might be the best option. It allows you to start fresh by wiping out most or all of your debt, including credit card bills, student loan debts, and other high-interest loans. This can give you the breathing room you need to get your business back on track and pay off your debts over time.
However, not every business needs to go through the bankruptcy process. If you can repay your debts in a reasonable timeframe and don’t have any serious financial problems, there are other options available to you. These options include restructuring loans or creating a plan of adjustment (POA). A POA is a formal agreement between you and your creditors that outlines how you will pay them back over time. It’s important to speak with a bankruptcy lawyer if you’re considering any of these options because they can help make the process easier and ensure that all of your legal rights are protected.
How to Get a Bankruptcy Attorney for Your Business
There are a few things you can do to get help preparing for bankruptcy if your business is struggling.
First, speak with an attorney to see if you qualify for Chapter 7 or 13 bankruptcy. A Chapter 7 bankruptcy will give you a fresh start and may be preferable if your business is worth less than $2 million. A Chapter 13 bankruptcy will more likely result in a repayment plan over time rather than a complete liquidation of the business.
If you decide on a Chapter 7 bankruptcy, work with an attorney to create a plan that includes tracking your income and expenses, selling off any valuable assets, and developing a budget to ensure you can continue operating while in debt repayment mode.
If your business is worth more than $2 million, or if it’s not feasible to file for Chapter 7 bankruptcy due to the value of the business or personal assets involved, work with an attorney to see if filing for Chapter 11 is right for your situation. With Chapter 11, your business will stay open while it restructures its debts into more manageable terms. This could include reducing salaries and hours so that the company can operate profitably while in debt repayment mode. Again, working with an attorney is essential to ensuring a successful outcome.
What are the Benefits of Hiring a Bankruptcy Attorney?
The benefits of hiring a bankruptcy attorney for your business include:
- Representation during the bankruptcy process
- A clear understanding of the law and how it applies to your specific case
- Ability to navigate through the complex legal jargon
- Providing resources and support throughout the process
- Assistance in finding financial solutions that work for your business
- Opportunity to speak with other businesses in similar situations
To sum up the common benefits of hiring a bankruptcy lawyer for your business:
- The lawyer will help you through the bankruptcy process and protect your assets;
- The lawyer will provide you with legal advice and support, steering you away from risky or expensive choices;
- The lawyer can help you find financial solutions that work for your specific business; and
- You can connect with other businesses in similar situations.
If you’re like most business owners, you know that times are tough. The economy is still recovering from the effects of the recession and many small businesses haven’t been able to keep up.
Bankruptcy lawyers can help your business through these tough times by providing guidance and legal assistance in filing for bankruptcy protection. This can enable your business to reorganize its debts and continue operating while it tries to recover from its financial troubles.