Home Law 5 Benefits of Hiring a Bankruptcy Lawyer For Your Business In 2020

5 Benefits of Hiring a Bankruptcy Lawyer For Your Business In 2020

by William Gist

Dealing with numerous financial issues and having to file for bankruptcy is a stressful time for everyone who finds themselves in this situation. The last thing business owners want to do is add additional expenses to their never-ending list, but when it comes to hiring a lawyer, this fee is worth it. Surely, you can file for bankruptcy on your own, but there are multiple things you have to be aware of.

Due to this reason, it is always a good idea to have a legal representation and someone who will be by your side every step of the way. Plus, when it comes to the cost, lawyers understand your trouble, so most of them will present you with the expense beforehand and won’t charge any additional fees. Here is the list of other benefits.

1. Bankruptcy planning

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You might not know this, but filing for bankruptcy requires a lot of planning and preparation. Plus, this step might not be the best one for you, anyway. Firstly, a lawyer will help you understand which type of bankruptcy you should file for, Chapter 7 or Chapter 13. As you can assume, both of these have a unique set of features, so you will need a professional in your corner to help you make the right decision. Plus, both of these also have requirements you have to meet, so you will need someone who can explain all the details to you.

What’s more, a lawyer can even advise you to go with an alternative that can work for you. There are many of these, and the chances are that you won’t be able to make this decision on your own.

2. Bankruptcy preparation

Once you have made the decision, it is time to start preparing for the case, and according to Silk Cooper, this can be a lengthy and tiring process. Besides, there are numerous aspects of it, so you need someone who knows all the ins and outs.

Firstly, you have to fill out all the paperwork that requires detailed information regarding numerous aspects of your business, such as income, assets, property, and debts. As you can assume, these have to be filled out carefully because if you make even a single mistake, it can make the entire process a lot complicated. Naturally, if you provide false information, you run the risk of being accused of fraud.

Secondly, there is a pile of additional paperwork that you have to gather, and it is really easy to get lost and make a mistake. A bankruptcy lawyer is familiar with the entire process, meaning that they will ensure you do everything correctly.

Furthermore, they will help you evaluate your property and design a repayment plan accordingly. Can you assess the value of your home and all possessions in it? Don’t worry, many people can’t, which is why, this is one of the services the bankruptcy lawyer will provide you. They will not only assist you with this task, but they will also ensure that you do it accurately.

Finally, there is a means test you have to take. Basically, it will help you understand whether you can file for Chapter 7, and on the other hand, whether you can afford to go with Chapter 13. Your mutual goal will be to file for Chapter 7, and the lawyer will help you understand if this is possible and do all the necessary preparations.

3. Legal representation

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As you know, this is a legal process, meaning that all communication between you, the trustees that work on your case, and even the judge, has to be carefully managed since all the information you choose to share can affect the outcome of the case.

Moreover, there are numerous laws and regulations you have to be familiar with. A lawyer will not only ensure the entire process goes smoothly but will also oversee the communication and protect your interests.

Due to the fact that Chapter 13 includes a repayment plan, your representative will ensure that yours is fair, and they will also be able to deal with any problem that arises on the way. If necessary, they will negotiate your plan and come to an agreement with the trustees to make the changes that are acceptable to you. This is something that you might not be able to do on your own, and plus, not having a professional in your corner can make things even more stressful.

4. Provide legal help

Unfortunately, in some cases, the creditors do not respect the fact that the case was discharged, meaning that they might try to collect for you. This is another stressful thing that can happen because you can receive multiple phone calls, and when you have a lawyer, you can just tell the creditors to talk to them. What’s more, if this happens, your representative will file a petition and make the harassment end.

5. Post-bankruptcy advice

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Even though your case is closed and you have paid off your debt, that doesn’t mean there still isn’t a lot to do. Now, it is time to rebuild your credit, and this is another task where you might need some help. Basically, you have to start from the beginning, and you will need some guidance and tips to start fresh and move forward.

If you had to file for bankruptcy, it doesn’t mean that your business career is over. You can get back on the right path with the help of a lawyer and their advice.

Conclusion

To sum up, these are only some benefits you will receive by hiring a bankruptcy lawyer. As you can see, they will not only protect your legal interest, but they will also help you have a piece of mind. Due to the complexity of the entire process, many things can go wrong, and you can rest assured that everything will turn out great if you have a professional working with you.

When it comes to their fee, we believe it to be insignificant, especially when compared to all the problems that can arise and additional expenses you might be presented with.

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