Before you run to a lawyer to help you file for bankruptcy, you need to know what is and isn't bankruptcy. After that, you will need to find a bankruptcy lawyer to help you file your case. Many people file for bankruptcy right away because they think it will solve their money problems. Often, it's the other way around.
If you declare your business legally bankrupt, it means you've done everything you can and there's no way to bring it back. It means that you have so much debt that you can't run the business anymore.
There are different kinds of bankruptcy, and the legal process depends a lot on where you live, but the goal is the same. It will take years to settle bankruptcy cases. The court will decide which debts you don't have to pay back and which will be taken right out of your paycheck.
Between now and then, your credit lines will be closed. Your credit history will be messed up, and no credit company will want to work with you. Back taxes will still have to be paid, and things like alimony and child support will still have to be done.
When there is no other way out, the only thing left to do is to find a good bankruptcy lawyer.
You should feel comfortable talking to a good bankruptcy lawyer. Someone you can trust and who has shown they know how to deal with bankruptcy. This is very important because you and the lawyer must be able to trust each other in order to talk. There have been so many times when the client withholds information that he doesn't think is that important, only to find out later that the information that was withheld made the case even more complicated. If you don't tell your bankruptcy lawyer something, it could cause problems that didn't exist before. Lawyers who deal with bankruptcy can only help their clients as much as they know. So, it's important for the client to work with the lawyer. First and foremost, the future of the client is at stake.
Don't be afraid to talk to the lawyer before you hire him. Ask the lawyer questions, and a good lawyer will answer you in a way that you can understand. If you don't, don't be afraid to ask people to explain things that aren't clear to you. Find a bankruptcy lawyer who has dealt with a lot of bankruptcy cases in the past. Find a bankruptcy lawyer who is an expert whenever you can. Try to stay away from generalists because they might not be able to help you as much.
If you don't feel comfortable talking to a certain bankruptcy lawyer, you should look for another one. You can check with the local bar association to see what they think.
When you go to see your bankruptcy lawyer, bring a list of all the people you owe money to, including personal loan payments so you don't fall behind, as well as a list of all your assets and debts. The bankruptcy lawyer will give you better and more accurate advice the more information you give him. Keep in mind that lawyers can only do their jobs as well as the information you give them.
You are the best person to give your lawyer information about your case, so do your best to work with him. You will also be the one who will either lose or gain from what happens.
