Legal Guide

Why Get a Bankruptcy Lawyer for Your Business?

As a business owner, you always face risks to the bottom line. In many cases, these risks are beyond your control. Economic uncertainty can take a toll on your operation and there is a good chance your business will enter bankruptcy. Before doing so, you will need a bankruptcy lawyer to understand the process better and give yourself enough breathing room to recover financially.

While interest rates and the prices of goods keep rising, business owners will need to look ahead and prepare for any scenario, even if that involves filing for bankruptcy. Until then, you shouldn't wait to find a legal professional to help you make the right decisions. Here are the top reasons why you need a bankruptcy lawyer for your business:

1. Prepare for any economic contingency

Companies won't remain prosperous for long. They are still vulnerable to market volatility which can impact their earning potential. Fortunately, businesses can avoid the effects of a sudden downturn by looking at where their industry is headed and hiring a corporate lawyer to help them prepare for difficult times ahead. By getting a bankruptcy attorney at the first sign of financial trouble, you can come up with a plan that will ease the effects of a downturn on your business. You just need to look for a lawyer who understands corporate law in your state or city. If you are operating your business in North Carolina, consider getting a bankruptcy lawyer in Fayetteville or Charlotte.

2. Get valuable advice before making a decision

Filing for bankruptcy is a major decision to make. The process can be daunting and you may get a negative report on your credit history. For this reason, you need a bankruptcy lawyer to help you choose other legal remedies with less severe consequences to your financial future. Your lawyer could suggest filing Chapter 11 so your business can stay operational while you work towards resolving all your obligations. You can't possibly choose the best option for your situation on your own, so save yourself the guesswork by getting a bankruptcy professional on board.

3. Deal with the unethical practices of creditors

Banks, lending institutions, and other creditors have a right to pursue you for unpaid debt. If your business is unable to pay its remaining obligations, filing for bankruptcy will give you peace of mind. That's because bankruptcy puts an automatic stay provision in place that will prevent creditors from collecting their dues as your business undergoes financial hardship. However, some creditors may resort to unethical and illegal means to recover what you owe. A bankruptcy lawyer will ensure they won't make such attempts and have answers for violating the automatic stay provision.

4. Get representation in front during a 341 meeting

Once you have filed for bankruptcy, you are required to attend a 341(a) meeting of creditors, the purpose of which is to question you about your actual financial situation. This is the venue where you need to prove under oath your inability to pay off your debt, so it helps to have a bankruptcy lawyer by your side. That way, you will know what and what not to say that could affect your claim.

Whether or not you are teetering toward financial trouble, getting a bankruptcy lawyer is essential to avoid legal and financial problems that may come your way.

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