Bankruptcy is when the owner of a business, due to some unfortunate or unforeseen circumstances, is unable to repay the outstanding debts and so a legal proceeding in the bankruptcy court is initiated by the debtor by filing a bankruptcy petition. This helps the debtor in getting a convenient plan of instalments to repay the debts or in some cases, can get discharged of the debts completely. It is the last option that one resorts to when being unable to pay back debts. This may be due to expenses exceeding the income, failed business casualties, unexpected issues like theft, or damage due to natural causes, etc.
Bankruptcy isn’t the end of everything and it is really important to have an attorney that’s capable of handling such cases. If you fail to put enough effort in looking for and choosing the right one and just rely on your friends’ suggested ones, then you’ll have to face a lot more complications and difficulties in the time to come and it’ll be a really messed up the journey.
Here are a few tips that can make your life, and choosing an attorney a bit easier.
The truth is that most of the attorneys take up more cases than they can handle and provide proper attention to and so, are stressed due to workload. They would either not give you enough time to hear all your details and requirements out or will not be present with you mentally in your time and properly discuss. So be careful of that, as it can lead you to many unnecessary problems in future. Meet different attorneys and then select the one that you feel is calm and handles professionally.
Visit the bankruptcy court a few times and observe the lawyers there. You’ll get an idea of who is better and then check with them if they’ve got a slot available for your case. This is a better way to choose because you’ll have an idea of your attorney and the way he is going to handle your case and so, you can rely on him.
Once an attorney is chosen, you should sit along with your accountant and make a sheet of all the profits, losses, outstanding debts, remaining balance, etc. So that you can properly schedule the most convenient instalment plan and propose it to the court. The attorney will also help you select the bankruptcy category that suits you best. This is a really crucial part of filing bankruptcy as there are a total of 8 categories to choose from. This can be very tricky, and if chosen wrongly, you’d face issues.
Also, ask your attorney to prepare all the paperwork necessary for filing the petition and all that comes next. Every country’s requirement is different and you have to have the fee and documents according to your country.
Ask your attorney about the whole process of bankruptcy and keep the attorney and court fee ready. Also, remember the importance of involving yourself with this case as it’s your fight. Do your own research and invest your time into it and soon you’ll be making perfect decisions and getting things right!
