Small business owners who are considering filing for bankruptcy may want to consider seeking the services of a bankruptcy attorney. There is plenty of information available online about the process and laws involved, but it’s useless without proper knowledge and experience. Each financial situation is unique and will require a thorough examination to determine the best course of action. Even a friend or family member who has gone through the process and can offer firsthand experience may not provide the facts for another person’s situation.
Steps in Filing for Bankruptcy
A good bankruptcy attorney will thoroughly examine business documents, including business expenses, taxes for the previous year, and the owner’s personal financial situation to decide whether bankruptcy is recommended. A lawyer can provide information about the laws and the processes involved in filing. Researching the information given on www.totalbankruptcy.com can be useful; it could also connect you with a local bankruptcy lawyer who could possibly help you.
Negotiation Skills are Important
Some creditors will not be flexible about debt that is owed, and will argue that charges cannot be negotiated or written off. An experienced attorney is familiar with this practice, and will typically be much more comfortable with the negotiation process than the debtor.
Choosing a Certified Representation
Selecting a lawyer who is certified by The American Board of Certification will result in a skilled representative who has experience with this type of law. Each branch of the legal system is complex, so it is important to choose an attorney who is very familiar with bankruptcy law. He or she will be familiar with the rights of the debtor versus the rights of the creditor, and can help get the best possible outcome for the client.
Types of Bankruptcy
Bankruptcy laws are complicated, and vary by state. The attorney can also assist in determining which type of bankruptcy to file. Depending on the situation, troubled businesses could choose to file for Chapter 7, Chaper 11, or Chapter 13 bankruptcy in order to pay off what they owe and avoid incurring further losses.
Legal Help will be Greatly Beneficial
With so many options to consider, struggling small business owners will greatly benefit from hiring the services of a skilled bankruptcy attorney. Just as the owner would hire a financial officer to handle the financial aspect of his or her business, choosing a good lawyer will be beneficial in keeping it from falling deeper into financial trouble.