‘Bankruptcy’ is a very broad term. There are different kinds of bankruptcies. It is a very complicated and wide area of the law. There are many federal and local rules and regulations governing bankruptcy as a result.
For example, an individual can file for personal bankruptcy on their own. Businesses and corporations must have the representation of corporate bankruptcy attorneys when they file as stipulated by federal laws. As a result of the different types of bankruptcies and the differing laws that they all have, there are different kinds of bankruptcy attorneys.
Bankruptcy attorneys are specialized in this field. A corporation cannot hire a normal lawyer to represent them during their corporate bankruptcy filing. When a corporation employs the services of corporate bankruptcy attorneys they must be aware of the capabilities and limitations of these attorneys as stipulated by law.
For example, bankruptcy fraud is a crime. Bankruptcy fraud includes things like falsification of documents, omissions, lies etc. Any corporation that hires the services of a corporate bankruptcy attorney must be completely honest with that attorney and must provide him or her with all or any of the documents and information that the attorney request. Note that there are random audits performed by the government on bankruptcy cases. And because the attorneys and judges are experts in this field, they will be able to tell if there are any inconsistencies or cover ups. Similarly, a corporation cannot request that their lawyer be dishonest on their behalf while representing them in their file for bankruptcy. Though they work under and for the law, they are not beneath the law and they too can fall under the hammer. Be wary of any lawyer that suggests anything that is unethical or illegal.
Corporate bankruptcy attorneys are not allowed to represent individuals who are filing on behalf of the corporation. They are representing the interests of the corporation as their name clearly indicates and not the owners themselves. This is because owners cannot file for bankruptcy in their personal capacity on behalf of their companies.
Corporate bankruptcy attorneys are permitted to assist companies even when there is no need to file for bankruptcy. For example, you can hire a corporate bankruptcy attorney on a retainer basis for your company. The attorney will be able to advise you on a regular basis as to how you can avoid having to file for bankruptcy in the future.
Similarly, if you do find that your company may need to file for bankruptcy, a corporate bankruptcy attorney will be able to look at your case and make the necessary recommendations. Remember, their role is to assist you through every step of the process and not just when it is time to file for bankruptcy. Before they begin the process of filing on behalf of your company, they should be able to advise you whether there are any other viable solutions available to you. Deciding to file for bankruptcy is not a decision that should be taken lightly. As a result, a good lawyer will first try to find ways in which they can assist you without filing. Filing for bankruptcy should be a last resort.
The corporate bankruptcy attorney will be able to protect the company from the harassment or repossession of creditors during the process of filing for bankruptcy. Debtors enjoy certain rights under the law, and while the bankruptcy proceedings are happening (which is not done overnight), the bankruptcy attorney will be able to take steps to protect the debtors from the creditors until the proceedings are complete.
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