Generally speaking, filing for bankruptcy is a last resort option, particularly for businesses. They will do all they can to pay the money they owe. Sometimes, however, there is nothing that can be done, and a bankruptcy becomes inevitable. In that situation, it is vital that businesses use the services of a bankruptcy lawyer to help them resolve the issue.
What Is Bankruptcy?
When someone, or a business, files for bankruptcy, they will have to clear off all their debt, or some of their debt, depending on their financial state. Creditors, meanwhile, can file a petition to request the debtor pays all or some of the debt. If this happens, having a lawyer on your side is hugely important, because the complexities of the laws are significant, and a simple mistake can cost thousands.
What to Look for in a Bankruptcy Lawyer
There are a number of key things to look for in a good lawyer, being:
- Professional responsibility, which means that they treat their client fairly during the process, regardless of their situation. This is an ethical responsibility that all lawyers must agree on when taking their oath. Failure to do this will mean they would lose their case.
- Discretion, which means that they know how to properly behave, what to do, and what they can and cannot disclose about the case. All conversations between client and lawyer and all case details should remain confidential at all times. This ensures a positive relationship and ensures no information falls into the wrong hands.
- Financial knowledge, since bankruptcy lawyers have to deal with complex financial statements and documents at all times. They must be able to properly evaluate these to determine what the available assets are, particularly because liquidation may be required, which the lawyer will also have to deal with.
- Devotion, as the lawyer must be fully representative of their client and ensure their best interests are met at all times. They must be committed so that their clients’ rights are respected at all times. If a lawyer is not devoted, they would more than likely end up infringing the rights of their clients.
- Legal counsel, as they must be able to offer their clients sound financial advice. It is their duty to make sure their clients know how to behave in different situation, and they must be able to outline the details of their case in layman’s terms. This ensures their client is properly prepared when they have to answer questions of provide other forms of information. Providing advice is one of the key responsibilities of a lawyer.
If you seek the assistance of a bankruptcy lawyer, they must be able to tell you which options are out there, and which one is the most relevant to your particular needs. This is complex, which is why you should only work with an experienced lawyer to handle your case. Your financial future is in their hands, after all.