I’m already experiencing financial trouble; why should I add legal bills to my debt’s grand total?
If your business is struggling or having a cash crisis, making the decision to spend money to hire counsel is difficult. Many business owners do not know what benefits they can expect to receive from the expenditure of funds when the purse strings are tight.
Counsel can provide immediate relief from creditor calls because, once you retain counsel, creditors cannot legally contact you. After intake, counsel can also map out a plan to save or sell your struggling business, and help you on the path to future success—whether that involves out-of-court workouts with creditors or a full-blown Chapter 11 restructuring plan. For those businesses that seek relief under Chapter 11 of the bankruptcy code, a breathing spell occurs, which allows you to stockpile cash that would otherwise need to be paid to the secured creditors for whatever period of time is necessary to propose and confirm a plan of reorganization.
Managing a business in financial distress is an overwhelming, frustrating, intimidating, and emotional process. Hiring the right attorney early on will save you money, time, and significant headaches. The more complex your case, the more essential it is to hire an attorney. And going without counsel is not an option (the United State Courts do not allow businesses to file any pleadings or papers without counsel).
Let’s explore the role of a bankruptcy attorney to demonstrate how we can help you throughout the process.
Provides competent legal advice
Above all, a quality business bankruptcy attorney will lend his or her expertise. Before taking your case, an experienced lawyer should advise you of your options and recommend bankruptcy alternatives only if and when it’s appropriate. Your lawyer should provide their recommendations, such as which chapter you should file under, whether your debts can be discharged, and the potential implications to expect down the road.
An experienced bankruptcy lawyer will also have a comprehensive understanding of the rules and filing procedures that will allow you to avoid bankruptcy altogether, if possible. They can explain the intricacies of the process in a way that makes sense to help you feel confident throughout your bankruptcy filing. He or she can also provide creative solutions for most aspects of your case to maximize the chance for your business’ success.
Don’t be fooled by the bankruptcy firms that boast years of experience or a volume of cases. Quality over quantity is what matters.
Even the most straightforward bankruptcy cases require a heavy lift of paperwork. At Michael H. Moody Law, we take a hands-on approach to help you prepare for your filing and to create the right plan for your business. You’ll provide us with all of your financial information, and we’ll work diligently to ensure that your paperwork is compliant and accurate. In many cases, we take a hands-on approach and visit a business’s office to sort through years of disjointed financial paperwork in order to present accurate information even when the management of books and records is slightly behind.
Many high-volume firms rush through the paperwork. It is important to present accurate and reliable information the first time around to maximize the chance of a proper outcome.
Represent you at hearings, participate in bankruptcy litigation, and negotiate with creditors
While some bankruptcy cases are amicable, many include tough conversations with creditors or other key players in your bankruptcy process. Consider your attorney to be your first line of defense as they can field any incoming information relating to your case.
In some more severe instances, an adversary proceeding (lawsuit) might arise that’s connected to your bankruptcy case. Counsel will provide you with guidance to minimize the cost and distraction caused by contentious disputes.
No matter what you are facing, counsel can guide you along the path to recovery. That recovery may or may not include the filing of a bankruptcy petition. If you are facing financial distress, please give us a call for a free consultation.