Hiring a Commercial Bankruptcy Attorney

If your company is struggling, you may want to consider filing for bankruptcy. This is an effective safety valve for the economy that infuses cash into businesses. It also helps to manage creditors’ claims and reduce the amount of money that is owed to them.

A good Commercial Bankruptcy Attorney can help you stop wage garnishment and foreclosure, and help you get debt relief. You should always choose an experienced lawyer who has strong transactional and litigation skills.

Reputation

If you’re considering hiring a commercial bankruptcy attorney, it is important to find out about their reputation. This can be done by asking around or searching online. The best commercial bankruptcy lawyers have a strong track record of successfully representing clients in large and complex cases.

The team at Jones Day is renowned for its bankruptcy and business reorganization practice. It is primarily known for its representation of debtors, creditor committees, shareholders, and asset purchasers in relation to major bankruptcies. The firm’s lawyers represent a variety of industries, including retail, media, telecommunications, aviation, insurance, and technology.

New York-based Heather Lennox heads the practice. She has a wealth of experience in advising debtors, creditors’ committees, prepetition secured lenders, and DIP lenders. She recently led the team representing ad hoc groups of equity and debt investors in relation to the high-profile Chapter 11 case of pharmaceutical company, Mallinckrodt LP. The firm’s clients also include banks and financial institutions.

Experience

A bankruptcy lawyer will help you navigate the legal system. In addition to filing necessary paperwork, they will also handle any communication with creditors. They can even negotiate with debt collectors on your behalf. If you have a secured debt (like mortgages or commercial loans), a bankruptcy attorney may be able to modify loan terms or even “cram down” the liens to the value of your property.

When you interview potential attorneys, ask about their experience level. While it is true that someone with more experience will be better equipped to handle your case, it is also important to look at the number of cases they have successfully handled. A bankruptcy case is complex, and your attorney will need enough documentation from you to accurately assess how much your business owes and which assets can be shielded from creditors. Using this information, they will then recommend which type of bankruptcy case you should file. This could be a Chapter 11 filing brought to financially reorganize the company or a Chapter 7 filing designed to liquidate the business.

Fees

The fees charged by a bankruptcy attorney represent the lion’s share of the cost of filing for bankruptcy, and they can vary widely. Typically, the larger firms charge more because they have bigger advertising and overhead expenses. Solo practitioners may charge less because they have lower overhead costs.

Before choosing a bankruptcy lawyer, you should have a thorough understanding of your financial situation and the nature of your debts. You should gather as much documentation as possible, including recent collection notices, bank statements and credit card statements from the past six to nine months. You will also want to be prepared to discuss your income and assets, the amount you owe and who you owe it to.

A reputable commercial bankruptcy attorney will be honest with you and offer advice based on your individual circumstances. They may recommend that you try to resolve your problem through less drastic means like debt settlement or a debt management program.

Reviews

A reputable bankruptcy attorney will be able to evaluate your situation and recommend which type of bankruptcy you should file. Depending on the type of bankruptcy you choose, you could have your debt reduced, eliminated or reorganized so that you can pay back what you owe.

It is important to find an experienced bankruptcy lawyer who has successfully handled previous cases. A good way to find one is to check online reviews on websites like Avvo or Martindale-Hubbell. You can also ask for referrals from family and friends.

You can also search for bankruptcy attorneys on the website of your local bar association. The association will keep a directory of attorneys who specialize in this field and may be able to refer you to someone. Make sure you interview a few lawyers before making your decision. A great bankruptcy attorney will take the time to answer your questions and will be familiar with the laws in your area.