What are Bankruptcy Laws?
Bankruptcy laws give an individual or a business a second chance when the going gets tough. Courts may allow the applicant to completely wipe out the debts, restructure debts, or reduce debts, given that the applicant undergoes court mandated restructuring often imposing specific and stringent requirements. The laws regulating bankruptcy are federal laws and specialized federal courts, also known as the bankruptcy courts, may be the proper forum to seek such relief. States, too, have their own bankruptcy laws, which may differ from state to state. Since these are complicated legal matters, competent Business Bankruptcy Lawyers may be hired so that the business could be saved from any further financial and economic misfortune.
Types of Bankruptcies
A business may be able to file for bankruptcy under Chapters 7, 11, or 13. Which suits you better, only competent Business Bankruptcy Lawyers may be able to tell. Relief sought under each chapter may be different with different advantages and disadvantages and even prerequisites. So you may or may not be able to file for Chapter 7 given the facts of your case and may be found suitable for either a relief under Chapter 11 or 13. Remember these are complex matters with each case differing from the other. Therefore hiring Business Bankruptcy Lawyers may be your best bet to stop any further deterioration of your business interests.
Should I hire Business Bankruptcy Lawyers?
As mentioned earlier, Chapter 7, 11 and 13 are exclusive in terms of prerequisites, advantages and disadvantages. Business Bankruptcy Lawyers may be well-versed in bankruptcy laws, helping you select the correct chapter and draft a detailed plan for the bankruptcy court. For example, a layman may not know that filing for Chapter 7 may be complicated. Furthermore Chapter 7 may mean the liquidation of the business rather than reorganization of debt which is accorded under Chapters 11 and 13. Chapter 11 may allow the applicant to continue running the business given that the court’s order is followed in letter and spirit. But chapter 11 may not be for all businesses and an applicant may find Chapter 13 more attractive. However, Chapter 13 may also have its own advantages and disadvantages. Therefore, hiring and consulting Business Bankruptcy Lawyers may be suitable to ensure a smooth bankruptcy process.