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Archive for the ‘Bankruptcy’ Category

If you find yourself in deep financial trouble and you are unable to manage your debt situation at all, you may consider filing a bankruptcy to solve your financial crisis. However, when you opt for filing a bankruptcy you may consult a bankruptcy law firm. When you get help from a bankruptcy law firm, it will provide you with professional bankruptcy lawyers. These bankruptcy lawyers have an expertise in laws related to bankruptcy and bankruptcy filings. This article provides you with information you need to know while choosing a bankruptcy law firm.

Choosing a bankruptcy law firm

Here are some things you must consider while choosing a bankruptcy law firm.

1. Local bar association – As bankruptcy involves some intricate laws, its better if you get help from lawyers who are well-trained in the field of filing a bankruptcy. However, in order to choose the right bankruptcy law firm, you must contact the local bar association. This association will provide you with a list of lawyers who specializes in personal or consumer bankruptcy.

2. Ask friends and family – Ask your friends and family to suggest you and inform you about some bankruptcy law firm that they have worked with and are satisfied. You may create a list of such bankruptcy law firm based on the recommendations by friends and family. Ask the opinion of the bar association about them and the association will also advise you about the lawyers who will be able to handle your case in a better way.

3. Ask the ex-clients – Ask your bankruptcy law firm to provide you with a list of their previous clients. Try and gather information from the ex-clients about the law firm you want to work with. Make sure to gather information online about the particular lawyers to complement your decision about the law firm.

4. Find out their success rate – You must also ask the law firm about the success rate of two to three candidates in handling cases similar to your case. You must also find out the time taken by your bankruptcy law firm to help them file their bankruptcy. You must also make sure that you are comfortable working with the bankruptcy lawyer.

5. Ask for the contract – After you have decided upon your bankruptcy law firm, you must ask your law firm to provide you with their contract. This contract will show you the costs that you may have to bear for using their services. It will give you a detailed account of their fees and the services the law firm will offer you. If you are satisfied with the clauses of the contract and you feel that it suits your best interest, you must go for the bankruptcy law firm.

Filing a bankruptcy is one of the crucial decisions of your life. Thus, choosing an expert to help you out with your bankruptcy filing will be wise. But you must be careful while deciding upon your bankruptcy law firm. Choosing the right firm will not only help you save a lot of money but also will help you stabilize your monetary condition. Visit www.mrrlaw.net to get Maryland Bankruptcy Lawyer Services.

Bankruptcy laws are a complicated set of laws and therefore this makes it all the more necessary to hire specialized legal representation. It is not a feasible idea to avail the services of a legal professional who has not contested bankruptcy cases before. If you wish to file a bankruptcy case for your business, the systems are different for a partnership, a proprietorship or a corporation. An individual owner can file a case under Chapter 7, Chapter 11 or Chapter 13 of the bankruptcy laws.

If the business is in the nature of a partnership, then the challenges faced while filing a case of bankruptcy is different. In a Chapter 7 case of partnership bankruptcy, the trustee has the right to file a legal suit against the general partners if the combined assets of the partnership fail to pay the claim amount by which the assets fail to pay the partnership debts.

Filing a case under Chapter 7 may be the best option when a corporation is going through any of the following phases:

• The debts are so huge that restructuring does not appear to be a viable option
• Does not have any qualities or substantial assets that cannot be reproduced
• The business does not display any potential for future growth

By Chapter 7 of the bankruptcy laws a proper liquidation process can take place and the process can be supervised by a trustee. In such a case, the debtor need not pay any additional expense.

The bankruptcy laws across the country are uniform with minor state specific variations. If you are a resident of Phoenix in Arizona, then it is best to hire the services of a Phoenix bankruptcy lawyer who is well aware of the local laws to guide you during the process.

If you are not familiar with any of the bankruptcy terms, then you can look up a legal directory.

Though you can file for Chapter 11 bankruptcy as a corporation, individual or a business, but, there are some restrictions on the publicly traded business houses, which include insurance companies, companies offering utility services, business conglomerates, etc. Instead of filing for Chapter 11, they have to redistribute and assign funds to repay their creditors.

What are the advantages and disadvantages of Chapter 11?

Filing for Chapter 11 bankruptcy has both advantages as well as disadvantages. Some of the advantages are:

You will have the choice to accept or reject a contract.

The most important advantage of this type is you will be given some time.

Just after filing for Chapter 11 bankruptcy, you will be able to enjoy an  “automatic stay”.

You can work out the proposal of a reorganization plan of the balance sheet.

Some of the disadvantages of Chapter 11 are given below:

The fees that you have to pay to your attorneys can be astronomical and have to be borne by you.

If you are unable to pay the astronomical fees, your assets may be liquidated.  This may prove disastrous for your business.

The judge will keep a close watch over the business proceedings of the company but the major decisions pertaining to the activities of the company will be taken by the judge.

If you want to resolve your debt problems, you should first try out various debt relief solutions and if all options fail to meet your requirements, then only you can opt for bankruptcy. Declaring your business bankrupt should be the last resort for you.

Useful Resources:

To know more about bankruptcy law you can visit www.lakelaw.com and you can contact them at 312.360.1501 to hire a qualified Chicago bankruptcy lawyer.

If you are a business owner and have incurred huge debt, in order to get relief from your creditors or to have a revised plan to pay your creditors over time, keeping your business running, you can opt for Chapter 11 bankruptcy.

What is Chapter 11 bankruptcy?

Under the US bankruptcy code, Chapter 11 bankruptcy is also known as reorganization bankruptcy. It is generally filed by business organizations and corporations, which require time to restructure their debts, to reorganize their business assets and affairs. It gives you the opportunity to start afresh and will allow you to continue your business.

There is no limit to the amount of debt incurred. You will retain the possession of your assets and will operate your business under the supervision of the court, for the benefit of your creditors. You will be considered as a fiduciary for your creditors. If you can’t manage the business efficiently, a trustee will be appointed.

How does Chapter 11 work?

The bankruptcy arm of Justice Department will appoint some committees, who will see to the interest of your creditors and stockholders in working of the company, so that you can develop a plan of reorganization and get out of debts. The reorganization plan will be approved by the bondholders, creditors and stock holders. After that, the court will confirm the plan. If any creditor or stockholder rejects the plan, but, the court sees that the plan is well enough to resolve your debts, the court will still accept the plan. After the acceptance of the plan, a report should be filed with the SEC on Form 8k. You need to attach the copy of the complete plan with this report.

For more information:
Bankruptcy is totally a legal issue. To know more about the fact and if you are looking for a qualified NJ bankruptcy attorney contact with Archer & Greiner.