Small businesses, companies, corporations or limited liability companies may find difficulty in achieving success in the race of sharks. They have a stronger chance of being drowned in debts and losing assets. Most smaller companies don’t even own any assets to pay back their debts. If your small scale business has gone bankrupt or is on the verge of bankruptcy, it is recommended to hire a bankruptcy lawyer. The lawyer will represent you and your company in the court and work out your repayment amounts along with guiding you throughout the process.
When and why to hire an attorney?
If you are losing money rather than making it resulting in a financial crisis, filing for bankruptcy is the best option. For business bankruptcy, there are three basic forms to consider.
⦁ A Chapter 11 bankruptcy:
It allows the owner to reorganize the business while being protected from debtors and debt repayment.
⦁ Chapter 13 bankruptcy:
Chapter 13 allows for debt consolidation by the reorganization of the business. The form frees you from creditor collection efforts and you can pay back the debts over a time period by laying out a business plan.
⦁ Chapter 7 bankruptcy:
This form allows liquidation of the business and assets and an orderly closing down of the business.
While applying for any of the above forms, a good business bankruptcy lawyer is recommended. The council will answer your obvious questions like- what is chapter 7 bankruptcy? and help you to choose the ideal form for your business. An attorney can even help you reorganize your business and restructure your business plan.
The bankruptcy lawyers are really helpful for toning down the debts and advise you about the exemptions that can be cover your property. They will explore the scope of your business, debts, repayments, and exemptions. Moreover, an attorney can save you from tiring paperwork and court procedures.
Hire a good bankruptcy business lawyer and reorganize your business.