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6 Pitfalls to Avoid While Choosing a Bankruptcy Lawyer for Your Business

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Bankruptcy Attorney

Bankruptcy is a legal process that relieves businesses and individuals who cannot repay their debts. When you file for bankruptcy, your assets are liquidated, and the proceeds are used to pay off your creditors.

However, not everyone who files for bankruptcy is eligible for relief, and it’s essential to choose the right lawyer to help you through the process.

This blog post will discuss six pitfalls to avoid while choosing a bankruptcy lawyer for your business.

Choosing the Wrong Lawyer

When choosing the best Boca Raton corporate attorneys in Florida, many business owners choose the first lawyer they speak with or the one that offers the lowest fee. Unfortunately, it can be a mistake. The best way to find a reasonable corporate attorney is to ask for referrals from other business owners, your accountant, or your financial advisor.

Another mistake is choosing a lawyer who doesn’t have experience in corporate bankruptcy. The laws differ for businesses and individuals, so you want to ensure your lawyer is well-versed in corporate bankruptcy law.

For example, bankruptcy laws are constantly changing, so you want to ensure your lawyer is up-to-date on the latest changes. It may include changes like:

-The new tax law that affects businesses in bankruptcy

-New rules for small business debtors

-Changes to the means test

You could be disadvantaged if your lawyer isn’t keeping up with the changes.

Not checking Their License

It is crucial to find a licensed chapter 11 bankruptcy lawyer in Boca Raton MD, to avoid legal issues.

You can check the lawyer’s credentials by visiting the State Bar Association website in your state and ensure that they are in good standing with no disciplinary actions against them.

Another way to check a lawyer’s credentials is to see if they are board-certified by the American Board of Certification, a well-respected organization in bankruptcy.

Chapter 11 bankruptcy involves a lot of paperwork, and you want to ensure that your lawyer is up to date on the latest filing requirements. A board-certified bankruptcy lawyer will have the experience and knowledge to get your business through this challenging time.

Not Meeting With More Than One Lawyer

Bankruptcy cases are not one size fits all. You want to ensure that the lawyer you hire is a good fit for your business. It means more than just finding someone knowledgeable about bankruptcy law.

You also want to find someone you can work with who will be responsive to your needs. The best way to find out if a lawyer is a good fit is to meet with them in person.

You want to sit down and talk with them about your case so you can get a feel for their personality and how they would handle your case.

For example, in a chapter 7 bankruptcy case, you may deal with:

The automatic stay

– Discharge of debts

– Liquidation of assets

Each case is different, so you want to ensure the lawyer you hire is familiar with the type of bankruptcy you are filing.

Not Checking Their Client Portfolio  

You want to ensure that the lawyer you trust with your case has experience handling businesses like yours. If they have only represented individuals, ask if they would be willing to take on your case. If not, it’s best to look elsewhere.

Checking their client portfolio will also give you an idea as to whether or not they’ve had success in the past. For example, if they’ve only represented businesses that have eventually closed down, you might want to find someone with a better track record.

Not Asking About the Fees

You should always ask about the fees associated with hiring a bankruptcy lawyer. Some lawyers may charge by the hour, while others may have a flat fee. Make sure you know what you will be paying before hiring anyone.

Reputed Palm Beach County chapter 11 bankruptcy attorneys will be transparent about their fees from the beginning.

You should also inquire about other possible costs, such as court filing fees or charges for attending creditor meetings. Knowing all the potential costs upfront allows you to budget accordingly and avoid surprises down the road.

Not Asking About Their Strategy

Most businesses file for Chapter 11 bankruptcy, allowing them to reorganize and continue operating. But there are other options, like Chapter 13 or even liquidation. The right lawyer will help you understand your options and develop a strategy that makes the most sense for your business.

Conclusion

Bankruptcy attorneys are an essential part of filing for bankruptcy and can help ensure that you are successful in your case. However, choosing the right one for you and your business is essential.

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