Many businesses have fallen upon hard times as a result of the pandemic and shutdowns across the country. For many, the only foreseeable path forward is by filing bankruptcy. As painful as the thought is, attempting it without the help of a business bankruptcy lawyer could potentially add insult to injury. Aside from helping you to determine which type of bankruptcy is best for your business, or if there are other options available to you, your business bankruptcy lawyer can help you in the following ways.
Protect Your Financial Interests
Depending on the type of business bankruptcy proceeding you choose (chapter 7, 11, or 13), your business bankruptcy lawyer is instrumental in helping you manage your assets in a way that is most advantageous to you. While it never feels good to watch the business you've poured blood, sweat, tears, and endless financial resources into, fail, it would be even worse to take bigger losses than necessary in the process.
Communicate with All Parties
This is important. Emotions run high during bankruptcy negotiations. Things can be said, in the heat of the moment or agreed to in a moment of defeat, that aren't in your best interests. By allowing your business bankruptcy lawyer to communicate on your behalf, you're ensuring that your emotions do not harm your efforts rather than help them.
Save Money with Your Creditors
While this isn't the case with Chapter 7 bankruptcy, which requires liquidation of all assets, it can be a huge benefit with a Chapter 13 or Chapter 11 bankruptcy in which your business is allowed to reorganize debts in hopes of remaining afloat and keeping the business going. Your business bankruptcy lawyer can negotiate with creditors on your behalf to help reduce the total debt you owe.
Help You Gather Appropriate Supporting Documentation
While you're probably good at your business. You aren't skilled and educated in working with the legal system. You will need extensive documentation of the position of your business and the current state of its financial situation when going to court for a bankruptcy filing. Your business bankruptcy lawyer knows the documents you need and can help you get the right documents in time for various court filings.
Perhaps the most important thing your business bankruptcy lawyer can do during the entire process of filing bankruptcy for your business is to remind you that there is someone on your side, fighting for you.