Some people say that the only time a corporation should look for a business bankruptcy attorney is when it intends to file for bankruptcy protection in the courts. This is a shortsighted view of the role of a business attorney. It is not good to have a bankruptcy attorney only when the business files for bankruptcy in the courts. An ongoing business should have at least one lawyer on its payroll even if they manage their finances well, and the possibility of filing bankruptcy proceedings in court is remote.
If a well-managed business firm gets the highest credit rating in a bank, the firm is entitled to the lowest interest possible in line with the supply and demand for loans. Thus, the savings in the interest costs of the loans that the company incurs will be more than the makeup for the cost of hiring a business bankruptcy attorney.
Benefits Of Using a Business Attorney
You can give the job of scouting for a bank that gives the lowest interest rate to a business attorney. One way to do it is to divide the loan amount needed amongst many banks and in future use only the banks that give the fairest interest rates.
Just as a debtor may have trouble with his creditors because of his bad habits in handling money, a business firm could also get into trouble with the banks because of bad business practices. But these bad business practices need not necessarily be the fault of the company.A good bankruptcy attorney is always ready to take care of such situations for the company.
Bankruptcy proceedings are a very complicated matter. The purpose of bankruptcy proceedings is to enable a firm to utilize its resources efficiently while it is paying off a debt that is difficult to service. While a firm needs to pay its loans, this obligation should not hamper its goal of attaining its objectives.
This is the reason why hiring a business attorney complements the hiring of other much needed financial consultants. The business bankruptcy attorney and other financial consultants could contribute much-needed expertise in the top echelons of the company on how to efficiently manage their employees, money and resources. Good decision making by these professionals will more than adequately compensate for the cost of keeping them on the payroll.
Reasons For Having a Bankruptcy Attorney
Some people have a shortsighted view of the purpose of modern bankruptcy laws. They think that the purpose of modern bankruptcy laws is to make it harder for creditors to collect from debtors. But that is hardly what the law is about. The purpose of modern bankruptcy laws is to help both creditors and debtors in settling their mutual obligations to each other for the mutual benefit of both parties. They are not designed to make debtors benefit at the expense of creditors, but to enable both parties to gain in a debt proceeding.
A good understanding of the purpose of modern bankruptcy laws, particularly Chapter 13 and Chapter 11 law, will help debtors and creditors attain their objectives more efficiently when dealing with each other. Therefore, the service of a bankruptcy attorney is indispensable to any business whether the business is contemplating filing for bankruptcy or not. Also, the service of a bankruptcy attorney is also indispensable to creditors because it will enable creditors to collect on their loans in the most advantageous way while at the same time benefiting their debtors.