If you or your business is facing financial difficulties that you will not be able to overcome, you may need to consider filing bankruptcy. Making the decision to file bankruptcy is a huge step that should not be taken lightly. Therefore, before you file bankruptcy, you should do some research first to ensure you know what you are getting into.
What Do You Need to Know Before You File Bankruptcy?
Entrepreneur published an article regarding advice individuals and business owners should know before filing for bankruptcy:
- Make a Business Plan – If you own a business, before you file bankruptcy, create a business plan. The business plan should cover what you will do if you keep your business or if you sell your business as a result of the bankruptcy. A business lawyer or bankruptcy attorney can help you properly structure your business plan.
- Savings – Save as much money as you can to help you survive the financial down periods you will experience during the bankruptcy process.
- Hire an Experienced Bankruptcy Lawyer – The article features an account from a business owner who filed Chapter 11 bankruptcy. He hired an attorney who was inexperienced and had never filed a Chapter 11 bankruptcy before, because it was cheaper than hiring an experienced lawyer. It did not go well. Once he figured out that his attorney did not know what he was doing, he had to find an experienced bankruptcy lawyer to takeover his case. This ultimately cost him more money than it would have cost to go with an experienced attorney in the first place.
Why Should I Talk to a Bankruptcy Lawyer?
As New Jersey bankruptcy attorney Gary L. Mason explains in the video below, bankruptcy law is very complex. Therefore, if you are thinking about filing Chapter 7 or Chapter 13 bankruptcy, you should speak with a bankruptcy attorney first. A lawyer can answer your questions, explain the bankruptcy process, analyze your situation, tell you whether you should file bankruptcy and discuss the best options for you and your family.