Running a business is a big responsibility, and sometimes even the best run businesses experience problems. These difficulties often lead to bankruptcy. A White Plains business bankruptcy lawyer can help you find a solution to your debt problems without shutting down the company.
There are several different types of business bankruptcy, including Chapter 7, 11, and 13. A knowledgeable lawyer can guide you to the right option for your situation.
Experience
The right business bankruptcy attorney for you should have extensive experience with the specific types of debt relief options your company needs. The best way to find an experienced business bankruptcy lawyer is to use a lawyer directory, such as Justia. You can also search online for lawyers who have received starred peer reviews. Make sure you review the lawyer’s credentials and the number of cases he or she has successfully handled.
Chapter 7 bankruptcy, commonly known as liquidation bankruptcy, is a process that involves selling off a company’s assets and distributing the proceeds to creditors. It’s typically used by companies that have no chance of recovering from their financial problems.
Filing for business bankruptcy can have negative consequences, including a loss of reputation, limited access to financing, and permanent closure in some cases. You should explore all possible options for debt relief before taking this drastic step. For example, you may be able to negotiate a repayment plan with your creditors or seek court protection.
Reputation
A bankruptcy lawyer’s reputation reflects his or her dedication to this complex area of the law. A reputable firm will have handled numerous cases across different industries, including large business bankruptcies like those filed by Penn Central, Adelphia and Braniff. Unlike many firms that focus on consumer bankruptcy, Duane Morris’ bankruptcy practice handles a broad range of complex commercial chapter 11 cases for official committees of unsecured creditors or equity holders, private investment companies, lenders and lessors. The firm has also pioneered techniques such as weekly reporting to lending groups to ensure all participants have complete information about the case’s status.
Cost
There are many factors that affect the cost of a business bankruptcy lawyer. These include experience, reputation, and success rate. In addition, there are court filing fees and the cost of credit reports and tax transcripts. These expenses can add up quickly and make a business bankruptcy expensive.
Filing for bankruptcy protection may save a struggling business from liquidation or debt collection. It can also help a company negotiate with creditors to settle outstanding debts. The right attorney can help you find a solution that is best for your business.
Choosing the correct type of bankruptcy for your business is important. A Chapter 7 business bankruptcy can wipe out the debt of a company, but it does not eliminate personal obligations for partners or owners. A Chapter 13 business bankruptcy allows a company to continue operation while paying off debts over time. These are complicated cases, and your lawyer will likely charge more for a complex case.
Time
When your business is in financial trouble, it can have an impact on your personal life. It can also affect your family and friends, and even your reputation. That’s why it’s important to find a qualified bankruptcy lawyer who will make the process as seamless as possible.
A bankruptcy lawyer can help you get the relief you need from your debts and give you a fresh start. They will help you file for Chapter 7 or Chapter 11 bankruptcy, and they will guide you through the entire process. They will also help you understand the benefits and drawbacks of each type of bankruptcy.
Whether you’re a sole proprietor or have debt that has been personally guaranteed by partners, shareholders, or LLC owners, a bankruptcy attorney can help you get back on track. They can buy you time to reorganize your company, liquidate your assets, and pay off creditors over a period of 3 or 5 years.