Many business owners are facing a variety of challenges that make it difficult to continue operating profitably. If your company's debts are outpacing its profits, filing bankruptcy is one option for managing the situation. However, here are three reasons you should hire an attorney to help with the process rather than do it on your own.
Identify the Right Bankruptcy Chapter to File
There are three types of bankruptcy business owners can apply for to help them deal with their debts.
To the extent many people are familiar with Chapter 7 bankruptcy law, they often imagine it to be the one where the court sells all of a petitioner's valuable assets. While there are scenarios where someone with a lot of assets and massive debts might see a great deal of their property sold, this isn't always the case. Here's why you might hold onto more of your assets than you'd expect in Chapter 7 bankruptcy law.
Chapter 13 bankruptcy is a common form of legal paperwork that can help you avoid further problems. This comes about when you owe a lot of money to a creditor and want to get some relief from this debt. It's a sensitive matter that you will need to address to the fullest, and this requires you to know as much as you can about bankruptcy, how it can be helpful to you, and what you'll have to do.
It can be intimidating to sit before a bankruptcy trustee when filing for bankruptcy, but this is a necessary step in all Chapter 7 cases. You will likely only have to do this once, though, which will take place during your 341 meeting of creditors. This meeting is designed for several purposes, and here are some of the things you should expect during it.
You will meet the trustee handling your filing
If you haven't had much luck getting out of debt on your own, now is a good time to consider working with a debt consolidation attorney. Aside from consolidating your major debts, here are a few things that an experience debt consolidation lawyer should be able to do for you:
Enjoy Lower Interest Rates
While your past due accounts do unpaid, they get higher and higher thanks to accruing interest.