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Hiring a Business Bankruptcy Attorney for the Best Legal Advice

February 12, 2012 | Comments: 0 | Views: 121

For businesses facing imminent closure due to heavy debt, it is well worth their time to consult a business bankruptcy attorney. It is a well-known fact that more than half of new businesses fail within the first year of operation. With the recent economic decline, even older, once stable businesses that borrowed for expansion have found it harder to meet their loan obligations. For business owners finding they are facing such a dilemma, it is important to hire an attorney who can look into all the available options and give advice on what to do next.

Just as is the case with today's mortgages, banks have found that foreclosing on businesses doesn't guarantee full recovery of their loans. The bad publicity that also accompanies such actions also discourages them from pursuing that option. Lending institutions have become increasingly willing to negotiate better terms with businesses. They can refinance businesses and extend repayment periods. This can help businesses access much-needed funds for recovery and pay smaller, more manageable installments on their loans. It is a good idea to engage an attorney who is experienced in handling such negotiations to get the best deal possible. A lawyer who has an established rapport with the banks in the area will know how to quickly work out such deals.

Businesses can have their business bankruptcy attorney file for Chapter 7 bankruptcy. This option means that the business will come to a close. All non-protected assets are put up for sale. A court appointed trustee sees to the payment of creditors from the sale proceeds. This bankruptcy is often opted especially where both the business owners and creditors are in agreement that future proceeds are unlikely to cover the outstanding debt over a reasonable period of time. Hiring an attorney ensures that the business owner will be properly advised on what property is exempt and ensure he/she fully discloses all relevant financial information to the court.

Another option is the Chapter 11 bankruptcy. This ruling allows business owners to carry on operations of the business without undue harassment for payment of debts from creditors. A trustee is appointed to assist the business come up with a new repayment plan. This trustee ensures that he is the go between the debtor and creditor, and that the business owner is informed that he cannot sell off any assets. He will also monitor the business owner's commitment to fulfill his payment obligations. A business bankruptcy attorney will be instrumental in coming up with workable repayment plan and handling all related litigation work. Businesses that file for bankruptcy can find the process cumbersome and complex, and should hire a qualified lawyer to take care of the technical issues.

Bankruptcy is often seen as an embarrassing process. Even though it does leave one losing face, it is designed to help protect the business owner and the creditors' interests. Failing to pay debts is an experience many successful entrepreneurs can attest to having gone thorough. It does not mean an end to business establishment or growth. It is merely a stumbling block that one must tackle and learn from. A good business bankruptcy attorney is the best person to help sort out complicated process of filing for bankruptcy and will ensure the business owner's interests have been duly looked after.

About the Author: The Bankruptcy Attorney will definitely help those people if they have filed for bankruptcy so that, the common people do not get over burdened with the debt which will be impossible for them to pay back. Click here for Bankruptcy lawyer

Source: EzineArticles
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