The stresses caused by financial difficulty could force a person to file for bankruptcy. However, the procedure is extensive. And you must be sure that you are applying for the appropriate type of bankruptcy. With this, you will need the assistance of a bankruptcy attorney to take you through the process steps. The following is a rundown of what you can anticipate from the process:
What Services Does a Bankruptcy Lawyer Provide?
There are two distinct categories of bankruptcy attorneys. These are commercial bankruptcy attorneys and consumer bankruptcy attorneys. Commercial bankruptcy attorneys will assist you in declaring bankruptcy for your company. While consumer bankruptcy attorneys will assist you in declaring bankruptcy for yourself.
You need a lawyer when going through the process of commercial bankruptcy. Having legal representation can safeguard your company from its creditors. They can also assist you in paying off loans. And in requesting additional time to restructure your company.
When you file for consumer bankruptcy, best corporate lawyers defend you and your partner. They do this by negotiating with creditors and putting up payment arrangements.
How Can I Determine If I Need the Services of a Commercial Bankruptcy Attorney?
There are cases you might need to speak with a consumer bankruptcy lawyer about. And there are those that you might need to speak with a commercial bankruptcy lawyer. These indications include:
- Incapable of paying your monthly bills.
- Calls from creditors and debt collectors on a continuous basis.
- Uncertain on how to address the mounting debt.
- Failed bank checks.
- Cash flow problems.
Legal Representation is Mandatory Under Commercial Law
If your company is having trouble making ends meet, you should talk to a Chapter 11 bankruptcy counsel. Your attorney may be able to assist you in obtaining additional time to reorganize your business and restructure your debts so that they can be paid at a later date. Click here to get when should a new company get a commercial law attorney?
On the other hand, if you are aware that you will have to shut down your company, you may require the services of a Chapter 7 bankruptcy attorney. This type of attorney will, in essence, transfer ownership of your company to the creditor in exchange for the debt being discharged.
If you cannot repay your debts over the course of a reasonable amount of time and you are filing for personal bankruptcy, you may also seek the services of a Chapter 7 bankruptcy attorney. In exchange for some of your personal property, you will be granted a clean slate in terms of your financial situation.
An attorney who specializes in Chapter 13 bankruptcy can assist you in reorganizing your debts and negotiating a payment plan with your creditors if you are attempting to settle your debt but require additional time to do it.
Should I File for Bankruptcy Alone or with a Corporate Lawyer?
When filing for bankruptcy, individuals are not needed to have a lawyer with them (corporations and partnerships do). In light of the convoluted processes surrounding the filing of bankruptcy petitions, it is highly recommended that you seek the assistance of a bankruptcy attorney who will be able to defend your rights as a debtor.
How Much do Commercial Bankruptcy Lawyers Charge?
In most cases, bankruptcy attorneys will bill their clients on an hourly basis and will request a retainer payment. A retainer is an up-front payment that will be deducted from the total amount of money you owe to the attorney.
Your rates will be different based on both the chapter of bankruptcy you choose to file and the location in which you live. Make it a point to inquire right away about the fee structure of your attorney’s services.
Some organizations may tell you that they can lower or consolidate your debt, but in the long run, they will wind up charging you significantly more money than you initially owed. A bankruptcy attorney will work to decrease or combine your debts while minimizing the impact on your financial situation as much as possible.
What Should You Expect from a Commercial Bankruptcy Lawyer?
Your debt may be reduced, discharged entirely, or reorganized so that you pay what you can when you are able to pay it, depending on the form of bankruptcy petition that you submit. Creditors would rather collect some money than none at all, which is why they are willing to take a reduction in the total amount that they are owed by you.
If you file for consumer bankruptcy, it is possible that you will lose part of your assets. If you file for commercial bankruptcy, it is possible that you will lose your business. A bankruptcy attorney will not only be able to examine your circumstances and advise you over the type of bankruptcy petition you should submit, but they will also be there to assist you all the way through the process.
Conclusion
Having a commercial lawyer by your side is a great deal. They can help you deal with issues of intellectual property issues. As well help you lay the legal groundwork for your company. Including disputes of private law and consumer law. Having a lawyer with good understanding of business law, and research skills is the particular focus of many smaller firms.
When it comes to commercial transactions disputes and corporate governance there is no DIY. You can’t simply sort it out yourself without causing more mess.
For all you need to know about the Australian corporate law, our experienced commercial lawyers at Chamberlains can help you. To beat your Australian competition in case about the Australian laws you should trust the right hands. Your partnership with Chamberlain will put in the winners conner.