When a small business owner realizes there is no way to meet upcoming financial obligations and the company is struggling significantly, it may be time to consider filing for business bankruptcy. This can be done with the intention of dissolution, or restructuring in order to gain time to get back on track. If this individual has little to no experience with this type of situation, it’s helpful to do some research on hiring and working with an attorney.
The business owner naturally wants an affordable price for legal service, but that doesn’t mean choosing a lawyer or a firm with very low prices is best. Some attorneys essentially run bankruptcy mills, which can mean a lack of precision and little in the way of personalized attention.
During the initial consultation, the lawyer can help the individual decide whether filing for business bankruptcy is actually the best option. There may be suitable alternatives. If bankruptcy is advisable, they then must consider whether restructuring the organization and the debt is a reasonable decision.
The attorney will provide a written contract detailing the services to be provided and the fees for those services. The information also includes the payment structure. Attorneys vary to a certain extent in how they expect payment. For instance, personal injury attorneys commonly work on a contingency basis and only accept payment when the case ends successfully. This is not how bankruptcy lawyers work with their clients, but they still generally try to make things easier in regard to payments. An affordable payment arrangement may be set up, for example.
After hiring an attorney, the client should not hesitate to ask any questions he or she comes up with during the process. Sometimes this individual will want clarification about how the case is proceeding. The client should request copies of all documents and keep that paperwork in a secure paper or digital file.
No business owner ever wants to face the prospect of bankruptcy. Unfortunately, for some, it’s the only way out of substantial financial trouble. Bankruptcy lawyers help these men and women navigate through the complicated process.