In the current economic downturn there is a greater threat of business bankruptcy. It can have a devastating effect on lives and can affect people throughout the community. On a grander scale, more bankrupt businesses means less money spent and this affects the whole economy.
Bankruptcy can occur due to a number of factors. Sometimes these influences are external, such as the state of the market or an increase in costs or competition. In some cases it can equally be due to weak management or a bad choice of location.
There are a number of debt consolidation companies available and it is worth discussing with them to see what can be done. They can often help come up with refinancing plans that creditors may agree in order to get some money back. Make sure you speak to a couple of companies and if possible get independent advice before signing up to a settlement. If you have over a certain amount of unsecured debt it may be better to go with a debt settlement company.
Before filing for bankruptcy you should consider what options are available to you. If possible you should try and secure more financing. This can be via a refinancing agreement with your bank and creditors or through outside investment. Another alternative is to default on your loans.
When contacting law firms ask questions about the service they offer. If the person you are interviewing will not be representing you, ask to talk to your potential lawyer. Ask how long they will spend on the case and what fees they charge. Make sure you get a clear idea. For example they may need to use a forensic accountant.
If it cannot be avoided and you have to file for business bankruptcy then you should look for legal representation as soon as possible. Going with a court ordered lawyer may be the cheapest option but it is also likely they will have the least time to prepare your case and it is less likely you will get a positive result. If you are concerned about bankruptcy and want to know specific information regarding your business then it should be discussed with an independent financial advisor.
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