Business and Individual Bankruptcy as Areas of Bankruptcy Law
A business bankruptcy attorney is an expert in all areas of business bankruptcy law. They are fully qualified to evaluate your financial position, recommending the course of action for you and guiding your filing through bankruptcy court for successful filing. If you are considering a business bankruptcy attorney, you will find many with a wide range of experience. The most important thing to consider is how much experience does the attorney have? How long has the attorney been practicing law? These are just some of the questions that you must ask yourself before you hire a business bankruptcy attorney.
A bankruptcy lawyer is adept at working with creditors to discharge all debts and other liens on your business properties and records. In many circumstances, there are alternative resolutions to eliminate credit card and other unsecured debts by liquidating corporate assets and distributing the funds to the individual creditors. However, the creditors may file claims of fraud or bankruptcy against you in order to collect the remaining debt balance. A bankruptcy lawyer can assist you in the resolution of these claims. It is advisable to have a bankruptcy lawyer on your side as they are trained to deal with creditors in this sensitive area of the law. There are many professional associations and agencies that can offer advice and assistance if you are considering filing for bankruptcy or have questions about the filing.
The most important aspect to consider when filing for business bankruptcy is whether you will retain the services of a bankruptcy trustee. Most creditors prefer that their debtors retain an attorney because an attorney will know better how to negotiate with the creditors to achieve the best result for their client. Although some businesses and especially those that are very large do not require the services of a bankruptcy trustee, it is advisable to retain one in case you choose to use your own bankruptcy attorney to file for bankruptcy.
Another option is to file a chapter 7 petition, which is the most popular method of filing for business bankruptcy, said Florida bankruptcy attorneys. Chapter 7 petitioning is appropriate for businesses that have enough property and accounts receivables that can be sold in order to repay all outstanding debts. A chapter 7 petition requires that the borrower to sell the debt balances for a pre-determined amount and then pay the sale price in full to eliminate the business debt.
One last option for those who are considering filing a chapter 7 bankruptcy is to file a limited liability company. This allows the owner of the limited liability company to retain control over the business assets but give up the right to manage or benefit from the business assets. A limited liability company is not considered a viable business option for smaller businesses because it is extremely difficult to set up and maintain. Also, many small business owners find the liability protection offered by an LLC to be more beneficial because the individual is allowed to reap the benefits of the company while avoiding the burden of managing the LLC.
After filing for bankruptcy, it is important to hire a qualified bankruptcy attorney with experience representing the debtor. Qualified lawyers know the laws regarding bankruptcy, and they will work closely with the debtor and their attorney to build an effective strategy. The trustee of a bankruptcy is paid by the debtors or creditors of a debtor, so it is crucial that the trustee provide accurate information and do not mislead the debtor into signing any agreement that may benefit the creditor. The trustee should also work diligently to ensure the accuracy and validity of the bankruptcy petition and supporting documents. If the petition is found to be inaccurate, the debtor and their attorney may have to start the process all over again. By hiring a competent, experienced lawyer, these homeowners can avoid the negative consequences of a bankruptcy and can regain control over their financial future.