The main disadvantage of filing for bankruptcy is that the debtor will have a bad credit record with his creditors. However, with good management of debt in a bankruptcy procedure, this may not be necessarily so. If the debtor does not give his creditors any trouble after devising a repayment scheme, the former could regain the goodwill of his creditors. Creditors are in business because there are debtors in need of loans. Without these debtors, no creditor would be in business. Therefore, it is essential for a bankruptcy procedure to devise a scheme that is beneficial to the debtor and the creditor. That is in essence the main purpose of a sound bankruptcy law - not to give any party an advantage over the other but to help them in every possible way. A good corporate bankruptcy attorney could help a business in distress, not only to structure their debts efficiently but also to keep a good credit record with its creditors.
The bankruptcy lawyer makes sure that only those legally liable properties may be included in a bankruptcy procedure; some properties cannot be a lien to debts like the debtor's house. In the bankruptcy procedure, the bankruptcy lawyer helps in devising a schedule of payments. Because bankruptcy procedure involved detailed negotiations between the debtor and his creditor with the help of a bankruptcy lawyer, the cause of why the debtor cannot pay the debts religiously will eventually surface. Is the cause of the bankruptcy due to the careless habits of the debtor? Or is it because of the riskiness of the venture? This will definitely surface during the bankruptcy negotiations under the supervision of the courts.
Whatever is the cause of the difficulties of the debtor, whether due to his bad habits or the riskiness of the venture will eventually surface during the negotiations between the debtor and his creditors with the help of their respective bankruptcy lawyers. The bankruptcy lawyer will have a hand in evaluating the debtor's credit ranking. A low credit ranking means that the loan is very risky and therefore merits a higher interest rate. A high credit ranking means that the loan is less risky and therefore merits a lower interest rate.
Therefore, it pays to hire a corporate bankruptcy attorney. With the services of a corporate bankruptcy attorney, you could obtain loans on business ventures that have a certain element of risk by agreeing to pay a higher interest rate. If you are an adventurous businessperson, the corporate bankruptcy attorney could help you acquire loans that are laden with higher than ordinary risk. Your willingness to pay a higher interest rate than the ordinary borrower makes your offer attractive to creditors. By careful negotiations with creditors, corporate attorneys can help by lending their expertise.
They say that two heads are better than one. The more counsel a businessperson is willing to listen to, the greater the chances of weathering a crisis. Therefore, it pays to hire a corporate bankruptcy lawyer. It is almost like hiring a short-term investor. This lawyer could interest other parties in the debt deal. Getting a permanent investor has its headaches. Through this lawyer, all the parties to the debt unwittingly become short-term investors without the difficulties of having investors in the firm who are co-owners.
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