A Business Bankruptcy Lawyer Can Help A Business Stay On Top Of Its Current Situation

Usually a business files for bankruptcy when it needs to liquidate it and also when it becomes necessary for it to close its doors to the outside world. It makes good business sense for such a business to consider hiring a business bankruptcy lawyer in order to buy time with creditors so that they are then able to raise enough funds to pay off their debts.

Can The Business Be Saved?

A business bankruptcy lawyer can also provide answers to the business in regard to whether it is indeed worth saving the business and if so, how can it be achieved. Other than this, the business bankruptcy lawyer will also help guide the business in regard to qualifying for one of the four different Chapters of Bankruptcy which are Chapters seven, eleven, twelve and thirteen.

Of course, the business bankruptcy lawyer will first of all need to identify the reason why the business is in deep financial trouble that in turn is forcing it into filing for bankruptcy. In fact, it is the underlying cause of bankruptcy that will ultimately govern which Chapter of Bankruptcy the company will file for bankruptcy.

Chapters twelve and thirteen are ideally suited for declaring business bankruptcy. A business bankruptcy lawyer will show you whether or not your business qualifies for Chapter twelve (which pertains to businesses and individuals that comply with the definition of Family Fisherman or Family Farmer.)

On the other hand, the business bankruptcy lawyer can also advice you to file for Chapter Thirteen bankruptcy, which is the chapter most suitable for a business that is no more than a small proprietorship. Other than these two chapters, Chapters seven and eleven are the other Chapters under which you may need to file for business bankruptcy.

A business bankruptcy lawyer will show to you whether your business has any chance of succeeding and whether it is possible to avoid the need to file for bankruptcy. Secondly, they will advise you regarding the probability of the business showing a profit if given enough time to run. Finally, the business bankruptcy lawyer can also show you how much time is required in order to pay off your debts while at the same time also avoiding incurring further debts.

Under certain circumstances it becomes necessary to hire a Chapter 11 bankruptcy lawyer and this need generally arises when the business wishes to reorganize it. The bottom line is that should the circumstances force a business into having to file for bankruptcy it is then a good idea for it to hire a business bankruptcy lawyer to ensure that it has a better chance of remaining on top of its current situation.