How Companies go Bankrupt and how lawyers can help

If a company goes bankrupt, they can find themselves in a situation where they could lose everything. Although they may file chapter 13 to restructure or choose another option, they need to get help as soon as possible. That’s where lawyers come in that can help them with the bankruptcy. They may even be able to prevent it from occurring. If you need to talk with a bankruptcy lawyer about your options, you can always find one in your city or town that understands what needs to happen. Here are a few things that bankruptcy lawyers can do to help a company that is almost going bankrupt, or has already filed for bankruptcy.

Why Would You Need A Lawyer For A Potential Bankruptcy

There are usually two options for companies and partnerships that are facing bankruptcy. They can file for Chapter 11 or Chapter 13 bankruptcy. Chapter 11 bankruptcy is less common, or at least less popular because there are fewer things that can be discharged. Chapter 13 bankruptcy is another type of bankruptcy that allows you to reorganize, allowing you to pay your debts off over time. Either one of these will work, but you need the help of a lawyer to tell you what would work best for your business.

What Is The Main Difference Between The Two Types Of Bankruptcy?

Both of these types of bankruptcy allow you to do similar things. Each of them will allow you to retain any type of property that you have in order to run your business. It also gives you time to sell off any of the assets that you have which you simply cannot afford to keep. Modified payments can also be set up on items like equipment loans and mortgages. There are also certain things that you can discharge or eliminate. The difference is chapter 13 is only available to people that have a regular source of income, specifically for individuals in this situation. If you have a company that is operated by another corporation, this would not be an option. Chapter 11 is for generally anyone. This could be a sole proprietorship, joint venture partners, or even limited liability businesses. There are absolutely no requirements in regard to debt or income, making this a much more popular option with some companies.

How To Find A Bankruptcy Lawyer That Can Help

You can easily find a bankruptcy lawyer that will help you. You should have no problem at all finding one that will have time to assist your company. Once they are done proposing their plan, you can get them started on filing the bankruptcy for you. If all you need is advice, they can also provide that. However, it’s often better to leave all of the paperwork for a bankruptcy up to an attorney. They will make sure that everything goes smoothly, and once this is behind you, you will see that this was the right choice to make.

Now that you know about bankruptcy attorneys, and what your options might be, you can use this information if you are ever in this type of situation. It’s always good to work with a lawyer when it comes to legal matters, and that includes preparing for a filing for bankruptcy.