If you are a business owner experiencing financial trouble, you may be wondering if it is time to file for bankruptcy. However, bankruptcy is not a solution for every situation and filing it can have negative consequences on your business. You should consult with an experienced business bankruptcy attorney at www.phoenixfamilylawyers.net/business-bankruptcy-attorney/ before deciding whether to file for bankruptcy.
Choosing the best Business Bankruptcy Attorney in Phoenix is important for both your personal and professional well-being. This is because the right lawyer can help you get the debt relief that you need.
The first thing to consider when choosing a business bankruptcy attorney is their practice area. Many of these attorneys focus on either a consumer (personal) or business bankruptcy, but others have significant experience in both.
They also need to be in good standing with their local bar associations and maintain a clean disciplinary record.
Their legal knowledge is second to none, and they should be able to answer your questions in an efficient and effective manner.
This is because they know the laws inside and out, and they will be able to protect your legal rights throughout the entire bankruptcy process.
They will also be able to explain the different types of bankruptcy available to you, so that you can make an informed decision on which one is best for your specific situation.
The type of business bankruptcy that you file will depend on the nature of your company and the debts it owes. You may be able to restructure your debt obligations under Chapter 11 (“reorganization”) or liquidate your assets under Chapter 7 (“liquidation”).
In order to determine which type of bankruptcy you should file, it is important that you consult with an experienced business bankruptcy attorney in Phoenix.
Some businesses are so inundated with debts that they cannot afford to pay their creditors any longer. They have already used lines of credit, withdrawn cash from their business bank accounts, cut payroll, and even transferred some of their personal assets to the business.
You will need to ask your attorney about how long it will take for your business to reorganize under Chapter 11 or to liquidate its assets under Chapter 7. This is because the time frame depends on how much money you can pay your creditors and what type of plan you negotiate with them.
Your business will have to attend a meeting of creditors, or 341 Meeting, in which you are required to answer questions from the judge and your creditor representatives. The 341 meeting is a mandatory part of the bankruptcy process, and it can be very stressful.
The court will appoint a trustee to oversee your case and to ensure that all of your assets are protected. The trustee has the power to seize non-exempt property and sell it. He or she will also be able to impose a stay on any creditors who continue to harass your business after the bankruptcy has been filed.