Is Your Business Credit Destroyed to the Point of Needing a Bankruptcy Lawyer?
Sometimes debt mounts a little too high for business owners and they realize they have reached a point where they’re in trouble if something isn’t done. Business debt defaults could happen from any number of causes such as a major product investment that didn’t generate the revenue the owners were hoping for, a loss of a big client, or perhaps being impacted by a seismic shift in the market. Whether you’re facing heavy debt simply as a business owner or also with your personal finances, it’s important to figure out where you go from there and if your business can be rebuilt. But if worse comes to worse, you need to know what you need in an attorney for bankruptcy filing portland me.
Options You Should Look at for Businesses Bankruptcy
Different businesses with different structures file for bankruptcy in different ways. Basically when you’re a business owner dealing with bankruptcy, you’ll have three types you could file for which are Chapter 7, Chapter 11 and Chapter 13 bankruptcy according to The Balance. Chapter 11 and Chapter 13 are usually the kind of bankruptcies that get filed if the business is going to repay its debts but can either be restructured, or it must close but there is a way it can repay all or most of its debts. Chapter 7 is if the business must be closed and its assets cannot cover its debt. Although it should be noted only businesses recognized as sole proprietorships can file for Chapter 13 in addition to Chapters 11 and 13 since it is also used for personal bankruptcy. Partnerships and corporations file either Chapter 7 or 11.
How You Should Vet Your Attorney
Since the type of bankruptcy you file for and the various settlements, litigations and other court proceedings you go through can have a long-term effect on you financially, your attorney has to be carefully vetted. While in theory, most general practice attorneys can handle bankruptcy cases, going with one that has a proven track record of keeping their clients from getting damaged too much is always the best strategy according to Bankrate. One catch you want to be particularly aware of is the Bankruptcy Abuse Prevention and Consumer Protection Act and be ready to ask your attorney how if at all that law could impact the kind of bankruptcy you’re trying to file for. But you should never seek out a so-called debt settlement firm in your attempt to resolve your business debts.
In conclusion, filing for bankruptcy the right way could help you and your business out if you’ve planned it out the right way and consulted with the appropriate people. But understand a resolution to continue your business could mean some significant structural changes as well as management changes you may not be comfortable with. The main thing to remember is that bankruptcy is not meant to be an easy way out of debt, and you should be prepared to pay a little more than expected for the right attorney.
