Archives for October 2016

The Difference Between a Bankruptcy Lawyer and all Other Lawyers

Well the main thing to note is that practicing law can have many niches or specializations. There are family lawyers, criminal lawyers, divorce lawyers, tax lawyers and yes, even a bankruptcy lawyer needs to specialize. The reason behind specializing in different areas of law is because the law is a vast, complicated umbrella of human regulation – definitely not something one person can master. A bankruptcy lawyer needs to know the bankruptcy laws inside and out. Furthermore, depending on the state you reside in, the laws can vary. This means that while a lawyer may specialize in practicing bankruptcy law in one state this does not necessarily mean they will know all the ins and outs of the law in another state.

Finding a bankruptcy lawyer is necessary if you think you are facing a filing. While you might be able to seek some general advice from any lawyer, any lawyer would recommend you see someone who specializes immediately. Talking to a bankruptcy lawyer doesn’t mean you have to file but they can inform you of your options and your rights. If you have already begun receiving calls from collections agencies, credit bureaus or other creditors then there is a good chance you will be filing for some form of bankruptcy. Bankruptcy is not just a general thing either. There are different forms of filing, depending on your situations, and your lawyer will tell you which filing is most suitable.

Bankruptcy_lawyer_150720140232The different forms of bankruptcy available to you are Chapter 7, Chapter 9, Chapter 11, 12, 13 and Chapter 15. Each filing involves different obligations, one requires you to liquidate all your assets and several of them involve “reorganizing” your finances entirely. A bankruptcy lawyer will help make these thing more tangible for you but perhaps the most useful thing your lawyer will do is call off the creditors. Keeping creditors at bay is a handy thing for sure but more than that, a bankruptcy lawyer will fill out all the relevant paper work and keep you on time for all your court dates.

The law is a finicky thing and bankruptcy law even more so. A simple mistake on the paperwork can send you back to square one or render you ineligible for filing. This is why a bankruptcy lawyer is a good investment. They deal with these laws, hoops and loopholes everyday – there is no one who will be able to serve you better. Getting your finances reigned in is your top priority and in order to this you need to secure the services of a professional with a proven track record. Do your homework and choose a bankruptcy lawyer who gets results and is willing to demonstrate their credibility.

Lawyers go to school for years and practice law for years, continually learning as they go. Bankruptcy is not something you can or should tackle on your own – there is no Dummies Guide that can truly prepare you for the amount of work and technicalities ahead. Finding yourself in this position does not make you unique – not in this day and age. Recent economic times have put many people in a similar position and the past is littered with those who have filed, learned a lesson and recovered spectacularly. Donald Trump has filed for bankruptcy before and we all know how well he is doing now. While you might think “of course Donald Trump had an excellent bankruptcy lawyer, he could afford it!” But getting a bankruptcy lawyer is the one financial decision you shouldn’t be worrying about at the moment.

Not only will you recuperate your legal investments when the tide changes but that legal investment is the only thing ensuring you that the tides will change. The investment will likely be much less than what you imagine because in this state of finance you can’t help but imagine the worst. Inform yourself by getting quotes and taking advantage of any consultations you can attend. It is possible to save your business or your home, not all forms of bankruptcy mean that you are going to lose your shirt. A bankruptcy lawyer will never be an investment that you regret but it will be a life and financial lesson worth every cent to learn.

Getting started on Chapter 11 with your bankruptcy lawyer

Although frightening and under difficult circumstances, bankruptcy doesn’t have to be the end. With the right bankruptcy lawyer, it can even be an advantageous boon to your business. A Chapter 11 bankruptcy is not a death, it’s an opportunity for reorganization and to take a new look at how your business is being run. You may not be able to think clearly with the pressures facing you right now, but a little time to breathe can make a big difference. A debt load brings with it many debilitating pressures. Lawsuits, collections demands, defaults and taxes can make it very difficult to cope alone and make the right decisions. Don’t try to do it alone. Get a lawyer who knows how all of this works. Chapter 11 is layered, even multi-faceted and therefore it is one of the most complex legal areas. With a chapter 11 bankruptcy, the company can maintain control over the assets of the business while negotiating their debt load.

If your business is suffering under the overwhelming pressures of debt, a Chapter 11 business bankruptcy can turn it around. The best part of this type of bankruptcy is that it gives you space to catch up, and with the help of your bankruptcy lawyer you will have the time and space to decide the best way to proceed. A Chapter 7 bankruptcy, on the other hand, does liquidate the assets of your business to pay your creditors. In the case of Chapter 7, the business will be lost and the creditors will likely not end up with all the money owed to them, but full payment is often made under Chapter 11, so it’s a win-win for everyone.

Choose to file for bankruptcy under Chapter 11 if your business is still a money-making venture. That is, if the long-term revenue that the company will generate is more than the value of the current debt, that business will likely continue to be a success given time and a good break. A bankruptcy lawyer can assist the business owners in making this decision and successfully following it through. A Chapter 11 bankruptcy may become a Chapter 7, if the conditions of the Chapter 11 agreement are not being met.

To begin the process, the business owners need to sit down with the bankruptcy lawyer and make a list of the business assets and the debts from which it is seeking protection. Only the debts on the list will be able to be included in the bankruptcy agreement. Creditor protections provided under the United States Bankruptcy Code, allow the creditors the right to object or question these proceedings, and even vote to accept the repayment plan. Once the matter is settled to this point, the information will be reviewed, approved and, if accepted, supervised by the Office of the United States Trustee. It is their job to make sure that fraud or mismanagement has not occurred to put the debtor in this position.

Under Chapter 11, the debtor retains control of his assets, and now needs to begin to reorganize the debts in the best way possible. Cutting staff, closing some branches, and giving stock options instead of money to the creditors are some ways that a bankruptcy lawyer may advise to save money. During the period when the Chapter 11 is in effect, the debtor may reject or renegotiate existing contracts in order to improve their position, but they may not enter into any other major business decisions without approval. They may not sell or buy property, or merge with other companies.

After bankruptcy, many businesses go on to be successful. A bankruptcy lawyer can often serve as a business coach to help the business understand how and why they were forced to file for bankruptcy, thereby helping them become a success. The success of the future business is dependent on the successful outcome of the bankruptcy and the turnaround in the way everything was managed. An unsuccessful Chapter 11 bankruptcy may become a Chapter 7 if it is mismanaged. It is important to determine the cause of the bankruptcy and the business’s role in putting the business in that situation so that the mistakes are not resumed after and during the time of the bankruptcy protection.