Financial difficulties may force you to file for bankruptcy as an easier way out. However, it is a process that can be very complicated and you will need the assistance of a bankruptcy attorney to file and do everything right. Typically, there are commercial bankruptcy attorneys who help with the filing of business bankruptcy and consumer bankruptcy attorneys who file for individuals. In a commercial setting, your business gets protection from creditors, while in a consumer setting, you or your spouse get protection from creditors and deal with debt settlement or setting up payment plans.
When to get a lawyer
One of the best steps you can take when facing financial difficulties is to accept that there is a problem and actually take the right step to address it. Inability to pay bills, bad checks, lack of cash flow, constant calls from creditors and debt collectors, debt that keeps piling up, and not being sure how to handle the situation are some of the signs that you need to for yourself or your business a bankruptcy attorney.
As a struggling business, your lawyer will be able to help you buy time to restructure the business and reorganize debts or, in worse situations, close the business. On a personal level, the lawyer will give you a financial fresh start by sacrificing some of your assets or can reorganize debts and negotiate payment plans with your creditors if you want to pay off debts.
What to expect from the lawyer
1. A qualified bankruptcy attorney will provide competent legal advice. They will not only advise you if filing bankruptcy is the best way to go, but they will also help you fill in the correct category and advise you on the best ways to use bankruptcy to achieve your financial goals. As part of the counseling, your attorney will also prepare you for the process, make it as easy as possible, and even share risks or potential pitfalls.
2. The attorney will have the ability to handle your bankruptcy. Familiarity with federal bankruptcy laws, local court procedures and rules, and even bankruptcy trustees within your area will make the process easier for your attorney. However, in order to enjoy this, you must ensure that you choose an attorney who has the necessary skills and experience to handle your type of case.
3. Handling all bankruptcy proceedings. Long packets of forms are inevitable in a bankruptcy case, but luckily filing is something your attorney will do for you. Lawyers have specialized software that makes it easy for them to prepare and file required documentation in court. All you will have to do is provide your attorney with all the information needed to complete the forms, such as assets, debts, income, and expenses.
4. Representation at hearings. Bankruptcy cases may have multiple hearings. Although you may be required to attend the meeting of creditors hearing, your attorney can represent you at any additional hearings. This representation saves you the heartache that comes with cases.
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