Four Questions To Ask a Bankruptcy Lawyer Before Signing

Author: BassFranklin

With the widespread changes that happened in bankruptcy law in 2005, it is more important than ever to hire a competent, experienced lawyer for a successful bankruptcy case. If you are considering filing for bankruptcy, you want to be fully informed about what a prospective lawyer can offer and what to expect from them before you sign a contract. Here are four questions to ask before signing a contract:

Should I file for bankruptcy or do I have other options?

This question covers a lot of ground and allows the attorney to talk with you about several different issues and discuss your options. It allows them to give a recommendation as to whether Chapter 7 or Chapter 13 is a better option for you, or even if there is an option outside of bankruptcy that you haven't considered. This overview will give you a clear understanding of the benefits and drawbacks of filing for bankruptcy and is a good place to start with a prospective attorney.

Who will actually be handling my case?

Sometimes the lawyer you are speaking to isn't actually the one who will be handling your case. It is important to know if they plan to pass the case on to someone else or will handle it themselves. There is typically a single hearing in bankruptcy cases, so if someone other than the lawyer you are speaking with is going to court with you, it is a good idea to talk to them so you can be comfortable with them and discuss the intricacies of your case.

How much of your time is devoted to bankruptcy cases?

If an attorney has 20 years of experience but only tries two or three cases a year, they won't be as experienced as a lawyer that does bankruptcy work exclusively for a much shorter period of time. Bankruptcy laws have changed, so it is important to know that your attorney is familiar with these changes and can make them work for you.

How much do you charge for your services?

This might seem like a no-brainer first question, but it is a good idea to ask it last. First of all, it gives you an opportunity to see all of the other services that the attorney plans to provide. There are a number of ways an attorney can request to be paid. Some work on cases on an hourly basis, while others may charge a flat fee, so it is a good idea to get an estimate of how much a case will cost. Additionally, it is important to know if there are any other expenses that may be incurred during their work that may be charged to you. Remember, like in so many other things, with a lawyer, you get what you pay for.

If you're searching for Los Angeles bankruptcy attorneys who will take your case from start to finish, visit blclaw.com or call the law office of Borowitz, Lozano & Clark at 800-509-3200 for a free consultation.

Article Source: http://www.sooperarticles.com/law-articles/four-questions-ask-bankruptcy-lawyer-before-signing-22152.html

About Author:
Brian Reed. Los Angeles bankruptcy attorneys Four Questions To Ask a Bankruptcy Lawyer Before Signing.

New York Bankruptcy Lawyers: Chapter 7

Author: marryzalaa

Bankruptcy is a legally declared inability or impairment of ability of an individual or organizations to pay their creditors. Bankruptcy law provides for the development of a plan that allows a debtor to resolve his debts through the division of his assets among his creditors. This supervised division also allows the interests of all creditors to be treated with some measure of equality. Few bankruptcy law proceedings allow a debtor to stay in business and use revenue generated to resolve his or her debts.

Customer advocate site designed to tell you, the people what you need to know about this new law with words you can understand. Many people turn to a bankruptcy attorney for help. Bankruptcy Lawyers can help explain bankruptcy law and ensure that the bankruptcy process goes as smoothly as possible. When most people think of bankruptcy, they think in terms of Chapter 7, where the unsecured debts are normally discharged in full. Bankruptcy of any variety is a difficult or deal at best, but at least with Chapter 7, a debtor was able to wipe out their debts in full and get a fresh start. Chapter 13, however, is another story, since the debtor must pay back a significant portion of the debt over a 3-5 year period, with 5 years being the standard under the new law. Prior to the advent of the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005," the most common reason for someone to file under Chapter 13 was to avoid the loss of equity in their home or other property. And while equity protection will continue to be a big reason for people to choose Chapter 13 over Chapter 7, the new rules will force many people to file under Chapter 13 even if they have NO equity. That's because the means test will take into account the debtor's income level.

Filing Bankruptcy is a difficult decision to make. In 2008 over 1 million Americans filed personal bankruptcy in order to improve their financial situation. Bankruptcy can help you prevent foreclosure of your home, stop debt collector harassment and get a fresh financial start.

However, the figures used by the court for living expenses are NOT your actual documented living expenses, but rather the schedules used by the IRS in the collection of taxes. A big problem here for most consumers is that their household budgets will not reflect the harsh reality of the IRS approved numbers.  So even if you think you are "safe," and will be able to file Chapter 7 because you don't have $100 per month to spare, the court may rule otherwise and still force you into Chapter 13. Some of your actual expenses may be disallowed. What remains to be seen is how the courts will handle cases where the cost of mortgages or home rentals are inflated well above the government schedules. Will debtors be expected to move into cheaper housing to meet the court's required schedule for living expenses? No one has any answers to these questions yet.

It will be up to the courts to interpret the new law in practice as cases proceed through the system. The two most common consumer bankruptcies are Chapter 7 and Chapter 13 bankruptcy. Sponsoring bankruptcy lawyers handle these types of bankruptcies exclusively so you can be sure you are getting accurate legal advice when you file bankruptcy. Bankruptcy attorneys will fight to protect your rights and your property. Bankruptcy attorneys fight the aggressive and annoying creditors for you. They can help you keep your home, vehicles and other property. A bankruptcy lawyer will be committed to getting you debt relief and providing you with valuable information, services and advice to get you a better financial future. There are many convenient locations to make filing bankruptcy or learning about the alternatives we offer, even easier.,

Article Source: http://www.articlesbase.com/bankruptcy-articles/new-york-bankruptcy-lawyers-chapter-7-1545458.html

About the Author

Storobin & Spodek LLP is a NY Chapter 7 law firm. If you are looking to speak to a Bankruptcy Lawyer New York, please call (800) 391-8392

Selecting a Bankruptcy Attorney

Author: Miodrag Trajkovic

Every one of us goes through a phase in life where there’s a reversal of fortune. You may be very successful, your business doing well and there is an outpouring of money and you have not faced too many problems. And there may come a time when the situation is adverse and your stars aren’t too hot. You then begin to realize that your financial life is no more the same. You may face a lot of financial crises. This is when you may want to file for bankruptcy. When you start thinking of bankruptcy, you will need some guidance in the whole process. You may come across a lot of legal terminologies in the process of filing for bankruptcy so you may need to hire some expertise in this area. You may have to hire a bankruptcy attorney.

A bankruptcy attorney will be able to give you useful insights, alternatives, terms and conditions and possible escape routes. You may find a legal counselor in a bankruptcy attorney. He is one person who has enough knowledge about the concepts, terminologies and guidelines that are related to bankruptcy. Do not make the mistake of choosing any practicing attorney. You will have to find some one who is an expert in the field. You will require the services of a good bankruptcy attorney.

The important matters that must be kept in mind before hiring the expertise of a bankruptcy attorney include the consideration of the level of confidence of the bankruptcy attorney. Check his background. Does he know the recent laws? Has he won the cases that he has handled? What is his credibility? Is his reputation good? Get an opinion from his other clients. By doing so you will know his capability and gauge his efficiency in handling your case.

Also the other main concern would be the fees that you will have to pay the bankruptcy attorney. If he is reputed in his field he may charge you a substantial amount by way of fees. If a bankruptcy attorney is new to the field, you can bargain and pay him a reasonable amount.

If you have not yet decided about filing a case of bankruptcy, but only want some advice and some enlightenment from a bankruptcy attorney, then the best option is to go to free consultation attorneys. You’ll find them a concerned lot and though they will probably have many cases, do give it a try. Do not be hesitant, be comfortable and share details about your case with them.

It is possible that the bankruptcy attorney that you have appointed is patient with your questions. It is very natural to ask questions because it is the best way to get details of bankruptcy filing. Find a bankruptcy lawyer who is approachable.

It is very important to get a bankruptcy attorney who will represent your case. Try and find the best if you want the case to go on smoothly

Article Source: http://www.articlesbase.com/banking-articles/selecting-a-bankruptcy-attorney-385666.html

About the Author

If you are faced with Bankruptcy, try visiting

http://bankruptcy.explore-me.com, a popular bankruptcy website that
offers tips, advice and resources including information on

Buying A Home After Bankruptcy and Credit After Bankruptcy.

Cheap Chapter 13 Bankruptcy Attorney -- 8 Things You Need To Know

Author: Roilee Mandeville

A cheap Chapter 13 bankruptcy attorney may be able to provide you with the help you need to get your finances under control. The economy has been tough on everyone. Some people have gotten into money troubles and the only answer seems to be bankruptcy. Chapter 13 bankruptcy is more of a repayment option than a clean sweep.

Understanding Chapter 13 Bankruptcy

1. Chapter 13 bankruptcy is a chance for you to adjust your debts. You can keep your property and pay off what you owe over a set period of time -- usually three to five years. It is set up for those filers with regular income that have the ability to make payments.

2. You and your Chapter 13 attorney will work together to come up with a repayment plan. The repayment may cover all of your debts or only part of your debts. The repayment period cannot be longer than five years.

3. During the Chapter 13 bankruptcy repayment period creditors cannot start or continue any collection efforts.

4. Foreclosure proceedings can be stopped by filing for Chapter 13 bankruptcy. The monthly payments for the mortgage must still be paid on time during the Chapter 13 bankruptcy plan. The process may cure any delinquent payments on the mortgage.

5. Chapter 13 acts as a consolidation loan for debtors. It takes all of the different debts and puts them into a payment plan. A trustee of the court collects the payment and then distributes payments to individual creditors. You will have no direct contact with the companies or people that you own money to that are covered under the Chapter 13 bankruptcy.

6. Chapter 13 will require that you file a list of all of your assets and liabilities, your income and monthly expenses, copies of tax returns, any contracts and also a statement of your financial affairs.

7. You will be required to get credit counseling before filing for bankruptcy. The counseling needs to be completed 180 days before filing.

8. There are fees involved with filing Chapter 13 bankruptcy above those paid to your bankruptcy lawyer. You will be responsible for a case filing and an administrative fee. These fees will need to be paid to the court when the bankruptcy is filed. The court can give permission to pay the fees in installments but those installments have to be paid in full no later than 180 days after the petition is filed.

Finding the right Chapter 13 bankruptcy attorney can be one of the most important steps to get your financial troubles under control. Finances can be one of the biggest causes of stress. Choosing a cheap Chapter 13 bankruptcy attorney that you can trust and that will have your best interests in mind will help make this tough time just a little easier.

Article Source: http://www.articlesbase.com/bankruptcy-articles/cheap-chapter-13-bankruptcy-attorney-8-things-you-need-to-know-1459396.html

About the Author

Roilee Mandeville maintains a website dedicated to information on how to quickly find cheap bankruptcy lawyers in 10 minutes or less. He will teach you a better way to research, compare lawyer prices and services when you visit http://www.BankruptcyLawyersAndAttorneys.com/ today. For a limited time he's also giving away FREE e-books about saving money, debt, and a bankruptcy audio guide to help debtors deal with their financial problems. The free download will only be available for a few days so hurry and get them now!

Should I File Chapter 13 Or 7 Bankruptcy?

Author: Eulalia Allmand

If you live are under tremendous financial pressure and unable to pay off your outstanding debts, then filing bankruptcy may be the only viable option that you have.

As an individual you have a choice of filing for bankruptcy under two chapters. An explanation of both the chapters - and how to choose the chapter more suitable for you - is given below.

Chapter 7

You can file for bankruptcy under Chapter 7 only if you pass the "Means Test".

This test involves calculating your gross income and assets and deducting your liabilities and your expenses during the past 6 months prior to you having filed for bankruptcy. These numbers are then compared with the average median income of a similar sized family in Texas.

If your net income is lower, then you qualify for filing under Chapter 7; otherwise, you may have to file under Chapter 13. Once you file under Chapter 7, the court will appoint a trustee, who will sell off your unprotected or non-exempt assets to pay off your creditors.

Your case can be discharged within 6 months if you file for bankruptcy under this Chapter. Since normally your home and cars will be exempt, you will be able to retain these assets.

If your home and car are at risk as a result of not being able to meet your obligations, then you can see why retaining a qualified bankruptcy attorney like Allmand and Lee to file Chapter 7 on your behalf is a wise choice.

Chapter 13 Explained

Unlike Chapter 7, filing under Chapter 13 will give you the chance to repay your outstanding debts over a longer period of time, usually between 3 to 5 years. You also have the chance to keep all your property.

As with Chapter 7, once your attorney files for bankruptcy under Chapter 13 on your behalf, your creditors will no longer be able to foreclose on your home or take your possessions. By law, they must also stop harassing you immediately.

Once you file under Chapter 13, you will need to submit a repayment plan to the court, detailing your plan to pay off your debts. Your bankruptcy attorney can even try to get a part of your loan discharged, so that you can pay off the rest.

If your plan is approved, the court will appoint a trustee, who will monitor your repayment schedule to ensure that you stick to it.

Chapter 13 or 7?

Usually (depending on the situation), individuals try to file for bankruptcy under Chapter 7 in order to get most of their outstanding debts discharged. The time taken to do this is also quite less as compared to filing under Chapter 13.

The problem is that with the new, stricter laws put into place after October 2005, you might find it difficult to file under Chapter 7 and might have to file under Chapter 13. Most of your assets may also be disposed of by the court trustee in order to satisfy your creditors.

This might not happen under Chapter 13.

Therefore, Chapter 13 allows you to stay in control as you chart out a repayment plan stretching between 3 to 5 years. If you are wary of losing many of your assets and do not mind a longer repayment plan, then you could ask your bankruptcy attorney if you can file under Chapter 13.

However, if you want your case to get discharged within a short time and are unable to come up with a long-term plan to raise money to pay off your creditors, then filing under Chapter 7 would be a better option.

So, compare both chapters with your bankruptcy attorney before deciding on which chapter is the better option.

Article Source: http://www.articlesbase.com/finance-articles/should-i-file-chapter-13-or-7-bankruptcy-447212.html

About the Author

Allmand & Lee are bankruptcy lawyers in Dallas, TX who specialize in consumer bankruptcy and offer bankruptcy services that help good people through one of the toughest times in their life. For more information please visit us at http://www.allmandandlee.com/

Why Do You Need Bankruptcy Attorneys?

Author: Judy Dixon

It is abysmal and often very difficult to take see yourselfbeing insulted for debt, to see your property repossession and face foreclosure or simply not being able to see yourself on the other side of all your debts. If you also find yourself in such a case of mounting debts and torturing creditors then perhaps you should take the first appointment you get with a bankruptcy attorney. For bankruptcy lawyers it is their business and they know about everything that goes around in it so they will be able to sketch out a viable alternative for you which you might not even think can be worked out. So give in an expert and let them help you.

Along with repaying your debts and the bankruptcy attorney can also guide you to sell off your property in order to repay the creditors. And if selling off your property is not exactly your idea of getting rid of all your debts the bankruptcy lawyers can also assist you in making an arrangement with your creditors approved by the court to repay them in a pre-determined frame of time. Again, if you hire a bankruptcy attorney they are updated with every last bit of information regarding the United States Bankruptcy code. Bankruptcy is not an easily gliding procedure it can really confuse nonprofessional so a bankruptcy lawyer really can make things easy and facilitate them for you. The most common procedures in bankruptcy proceedings are Chapter 7 wherein you follow the debt liquidation or reorganization. The other one is arranging for repaying the indebted money under the Chapter 9, 11, 12, or 13 bankruptcies.

If you are thinking of filing for bankruptcy, a bankruptcy attorney is recommended. The rules of bankruptcy have changed and new norms have been introduced which a nonprofessional cannot be expected to know about. Again, the new rules have made it only difficult to file for bankruptcies all the more reason you will need bankruptcy lawyers to make your experience more pleasant after everything that you are already going through. They will be able to suggest you ways to get rid of your debt mountains, deal with your property and assets in a way that will benefit you and give you more time at hand.

Article Source: http://www.articlesbase.com/banking-articles/why-do-you-need-bankruptcy-attorneys-1634939.html

About the Author

Bankruptcy Attorneys also work with the creditors and give them the assurance that their funds will also get recovered back. So a bankruptcy attorney is obviously a person you are going to thank once you see the benefits of hiring them.

Why Do You Need Bankruptcy Attorneys?

Author: Judy Dixon

It is abysmal and often very difficult to take see yourselfbeing insulted for debt, to see your property repossession and face foreclosure or simply not being able to see yourself on the other side of all your debts. If you also find yourself in such a case of mounting debts and torturing creditors then perhaps you should take the first appointment you get with a bankruptcy attorney. For bankruptcy lawyers it is their business and they know about everything that goes around in it so they will be able to sketch out a viable alternative for you which you might not even think can be worked out. So give in an expert and let them help you.

Along with repaying your debts and the bankruptcy attorney can also guide you to sell off your property in order to repay the creditors. And if selling off your property is not exactly your idea of getting rid of all your debts the bankruptcy lawyers can also assist you in making an arrangement with your creditors approved by the court to repay them in a pre-determined frame of time. Again, if you hire a bankruptcy attorney they are updated with every last bit of information regarding the United States Bankruptcy code. Bankruptcy is not an easily gliding procedure it can really confuse nonprofessional so a bankruptcy lawyer really can make things easy and facilitate them for you. The most common procedures in bankruptcy proceedings are Chapter 7 wherein you follow the debt liquidation or reorganization. The other one is arranging for repaying the indebted money under the Chapter 9, 11, 12, or 13 bankruptcies.

If you are thinking of filing for bankruptcy, a bankruptcy attorney is recommended. The rules of bankruptcy have changed and new norms have been introduced which a nonprofessional cannot be expected to know about. Again, the new rules have made it only difficult to file for bankruptcies all the more reason you will need bankruptcy lawyers to make your experience more pleasant after everything that you are already going through. They will be able to suggest you ways to get rid of your debt mountains, deal with your property and assets in a way that will benefit you and give you more time at hand.

Article Source: http://www.articlesbase.com/banking-articles/why-do-you-need-bankruptcy-attorneys-1634939.html

About the Author

Bankruptcy Attorneys also work with the creditors and give them the assurance that their funds will also get recovered back. So a bankruptcy attorney is obviously a person you are going to thank once you see the benefits of hiring them.

Bankruptcy Attorneys: Reasons You Need A Lawyer When Filing Bankruptcy

Author: Simon Volkov

Although hiring bankruptcy attorneys is not a requirement to file bankruptcy, going it alone can be the biggest financial mistake you will ever make. The new laws enacted under the Bankruptcy Abuse Prevention and Consumer Protection Act have made filing personal and business bankruptcy complex and complicated. One mistake could cause your bankruptcy petition to be dismissed.

Bankruptcy attorneys specialize in helping debtors obtain financial relief through appropriate bankruptcy chapters. Most lawyers specialize in either corporate or personal bankruptcy; although some represent all clients.

Personal bankruptcy includes chapters 7 and 13. Chapters 9 and 11 are used for corporations and partnerships, although certain individuals can apply for Chapter 11 bankruptcy if they meet certain criteria. Chapter 12 is reserved for farmers and fishermen.

In order to make the best selection, financial experts recommend consulting with a minimum of three bankruptcy attorneys. Realize you will be working with a legal team consisting of your lawyer, paralegals and office staff members.

Paralegals are oftentimes responsible for the bulk of the bankruptcy paperwork. This allows lawyers to maintain affordable fees because paralegals are compensated at a lower hourly rate than attorneys. When consulting with potential bankruptcy attorneys request the presence of paralegals and staff members who will work on your case.

It is important to work with attorneys familiar with the new bankruptcy laws. Under BAPCPA, debtors are required to undergo the 'means' test to determine the amount of debt which must be repaid. Nearly all debtors filing for personal bankruptcy are required to petition the court for Chapter 13.

Several options exist for locating bankruptcy attorneys. If you have a lawyer handling other legal affairs, ask for a referral. Most attorneys network with colleagues and are familiar with their areas of expertise.

Ask friends, relatives, co-workers or neighbors who have filed bankruptcy for a referral. Since this can be a delicate matter, it is best to discuss this topic in private. It is not a good idea to broadcast your need for a bankruptcy attorney in the presence of co-workers or those who participate in gossip.

The American Bar Association provides a nationwide list of bankruptcy attorneys. ABA does not provide direct referrals; however, a list of licensed lawyers and their contact information is published at abanet.org.

After compiling a list of bankruptcy lawyers call each law firm to arrange a consultation. Most attorneys provide complimentary consultations to determine if they are the appropriate lawyer to represent your case.

Bankruptcy lawyers will require financial documents including a list of income and expenses, banking and investment statements, mortgages, credit card debts, inventory list of valuable assets, and previous years' tax returns. These documents can help bankruptcy attorneys determine which chapter is most appropriate for your needs.

In closing, it is important to work with lawyers who are receptive to your needs, answer your questions, and place you at ease. Undergoing bankruptcy is a stressful process. There is no need to add additional frustration by working with a lawyer who is impatient, non-responsive or rude.

Article Source: http://www.articlesbase.com/bankruptcy-articles/bankruptcy-attorneys-reasons-you-need-a-lawyer-when-filing-bankruptcy-1901639.html

About the Author

California real estate investor, Simon Volkov, specializes in buying homes from people facing bankruptcy and foreclosure. Simon has published multiple articles about personal bankruptcy, bankruptcy alternatives, and tips for hiring bankruptcy attorneys via his website at www.SimonVolkov.com.

New York Bankruptcy Lawyers: Chapter 7

Author: marryzalaa

Bankruptcy is a legally declared inability or impairment of ability of an individual or organizations to pay their creditors. Bankruptcy law provides for the development of a plan that allows a debtor to resolve his debts through the division of his assets among his creditors. This supervised division also allows the interests of all creditors to be treated with some measure of equality. Few bankruptcy law proceedings allow a debtor to stay in business and use revenue generated to resolve his or her debts.

Customer advocate site designed to tell you, the people what you need to know about this new law with words you can understand. Many people turn to a bankruptcy attorney for help. Bankruptcy Lawyers can help explain bankruptcy law and ensure that the bankruptcy process goes as smoothly as possible. When most people think of bankruptcy, they think in terms of Chapter 7, where the unsecured debts are normally discharged in full. Bankruptcy of any variety is a difficult or deal at best, but at least with Chapter 7, a debtor was able to wipe out their debts in full and get a fresh start. Chapter 13, however, is another story, since the debtor must pay back a significant portion of the debt over a 3-5 year period, with 5 years being the standard under the new law. Prior to the advent of the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005," the most common reason for someone to file under Chapter 13 was to avoid the loss of equity in their home or other property. And while equity protection will continue to be a big reason for people to choose Chapter 13 over Chapter 7, the new rules will force many people to file under Chapter 13 even if they have NO equity. That's because the means test will take into account the debtor's income level.

Filing Bankruptcy is a difficult decision to make. In 2008 over 1 million Americans filed personal bankruptcy in order to improve their financial situation. Bankruptcy can help you prevent foreclosure of your home, stop debt collector harassment and get a fresh financial start.

However, the figures used by the court for living expenses are NOT your actual documented living expenses, but rather the schedules used by the IRS in the collection of taxes. A big problem here for most consumers is that their household budgets will not reflect the harsh reality of the IRS approved numbers.  So even if you think you are "safe," and will be able to file Chapter 7 because you don't have $100 per month to spare, the court may rule otherwise and still force you into Chapter 13. Some of your actual expenses may be disallowed. What remains to be seen is how the courts will handle cases where the cost of mortgages or home rentals are inflated well above the government schedules. Will debtors be expected to move into cheaper housing to meet the court's required schedule for living expenses? No one has any answers to these questions yet.

It will be up to the courts to interpret the new law in practice as cases proceed through the system. The two most common consumer bankruptcies are Chapter 7 and Chapter 13 bankruptcy. Sponsoring bankruptcy lawyers handle these types of bankruptcies exclusively so you can be sure you are getting accurate legal advice when you file bankruptcy. Bankruptcy attorneys will fight to protect your rights and your property. Bankruptcy attorneys fight the aggressive and annoying creditors for you. They can help you keep your home, vehicles and other property. A bankruptcy lawyer will be committed to getting you debt relief and providing you with valuable information, services and advice to get you a better financial future. There are many convenient locations to make filing bankruptcy or learning about the alternatives we offer, even easier.,

Article Source: http://www.articlesbase.com/bankruptcy-articles/new-york-bankruptcy-lawyers-chapter-7-1545458.html

About the Author

Storobin & Spodek LLP is a NY Chapter 7 law firm. If you are looking to speak to a Bankruptcy Lawyer New York, please call (800) 391-8392

Business Bankruptcy: How A Lawyer Can Ruin Your Troubled Business

Author: Kevin Muir

There is a padlock on the delivery gate. Most of the manufactured pre-cast products formerly stored on pallets in the back lot are gone. The building has a huge "For Lease" sign attached to the front. Janelle, the former owner, drives by in a Rent-a-Lemon car. She had registered both her automobile and delivery truck in the name of her business; and, like everything else she had worked for years to build up, they are gone.

How did it all happen? She had run this business successfully for over twenty years. When events turned sour, everything happened at once. First, a powerful and wealthy client sued her for nearly a half-million dollars. Then, other clients, sensing the distress, started using one of her competitors. Her financial problems soon followed. Eventually she couldn't make payroll, so she decided to file business bankruptcy.

Unfortunately Janelle didn't do her homework. Instead of seeking out an experienced bankruptcy attorney, she used a small law firm that she knew about through a friend of a friend. Her selection of representation was bargain-basement. She never went to the website of the state bar association. Only later would she discover that her attorney had his license suspended not once, but twice in recent years.

Doing a Reality Check

In this case, Janelle suffered from a sense of invincibility. Clients had threatened lawsuits before and she had successfully handled them through mediation. This time, however, it was different. At the first sign of trouble, she should have done a serious reality check. When everything first started, she just had a troubled business. After she let it linger, it turned into a liquidation business bankruptcy with the loss of the personal property securing her business loans.

Business Bankruptcy: Know What You Are Getting Into

Small business owners across the country turn to business bankruptcy when they get into trouble. Often they discover, only too late, that going to an attorney to file business bankruptcy only makes their situation worse. Janelle made the fatal mistake of using a cheap attorney. When the lawyer looked at her, he did not see a businesswoman in need of sound advice, but an expense paid trip to the Orient.

To make matters worse, this attorney didn't even specialize in bankruptcy proceedings. Therefore, he couldn't prepare her for what could happen to her and her business. The incompetence of her bankruptcy lawyer left her with no legal alternative when the bankruptcy trustee decided it was time to liquidate her business.

An honest bankruptcy attorney would have explained the process and given Janelle other options. Why? Business bankruptcy is not usually the best choice for small businesses. Most do not survive and eventually must liquidate their assets. The process is expensive costing anywhere from $50,000 on up. Your company must have at least that much in the bank to emerge successfully.

As with any other large investment, Janelle should have shopped around for an attorney. If she decided that bankruptcy was right for her business, she should have interviewed several lawyers. A bankruptcy can take up to five years to complete. This means you should plan to have a long-term relationship with your bankruptcy attorney. Make sure you trust this person and have good communication with him or her.

Janelle's is a classic case of doing too little, too late. Her story didn't have to end this way. When your business gets into trouble, make sure you explore all your options. Find out what it takes to turnaround your business or simply shut the doors before deciding that business bankruptcy is right for you. While filing Chapter 11 can save some businesses, going into the process unprepared and with the wrong lawyer can destroy it.

Article Source: http://www.articlesbase.com/management-articles/business-bankruptcy-how-a-lawyer-can-ruin-your-troubled-business-98233.html

About the Author

Kevin Muir makes it easy to turnaround your troubled business and avoid
bankruptcy. Learn the 3 vital factors to consider before you file for bankruptcy or turnaround your business. Click here to read the free report. http://www.KevinMuir.com/business-bankruptcy-lawyer.html