Businesses fail for all sorts of reasons, and do so more often in a struggling economy. Filing for bankruptcy protection is a very difficult choice for business owners; however, the process is much easier when they hire a business bankruptcy lawyer. Below are the many advantages these attorneys can provide for their clients.
• Bankruptcy lawyers are trained to understand chapter 7 through 13 of the US Bankruptcy Code. Chapter 7 liquidation and chapter 11 reorganization are the types used for business entities.
• Bankruptcy was established in Article 1, Section 8, Clause 4 of the US Constitution. Bankruptcy protection is a constitutional right for both individuals and businesses. An attorney is able to ensure a business’ rights are protected during transition and sale of assets.
• Attorneys understand bankruptcy is a stressful and potentially embarrassing process, which is why they are able to work confidentially, providing privacy for business owners. They work to minimize any press beyond the fair notice of sale, and they are able to stop harassment from creditors.
• Bankruptcy offers a solution to tax and credit problems, and it temporarily stalls foreclosure proceedings. While it should only be used as a last resort, chapter 7 and 11 protect a business owner’s individual assets, separating them from those of the company.
• Many attorneys offer free consultations. Clients should take advantage of this to measure the lawyer’s enthusiasm and preparedness, as well as the case’s chance for success.
• Many attorneys now serve remote locations through phone and email. As a result, business owners no longer have to be close to a large city to find representation.
• Many businesses can reorganize and resume operations after bankruptcy. Attorneys are also able to help with this process.
Potential clients should look at the background and experience of each attorney or firm, and they should look to newspaper archives to gauge a lawyer’s success rate. They should not be afraid to ask around amongst friends and fellow business owners about an attorney’s quality. These steps will help ensure a business bankruptcy lawyer can take care of a business’ needs while protecting the owner’s privacy, reputation, and assets.
