Business bankruptcy lawyers are very important once you know your business is in a mess.
Business bankruptcy is never a good situation to be in as a business person. In this article, we will look at the job description of a business bankruptcy lawyer.
Owning a business refers to running an enterprise or an establishment on your own accord. You get to be the boss of yourself and everyone else who works for you, while freely pouring your creative ideas into your business.
This feeling is always so thrilling as you hope for profits but still deal with the losses. Owning a business comes with risk-taking and to avoid the abrupt end of your business due to bankruptcy, it is always advised to get a Business Lawyer when starting a business.
What Happens When a Business Goes Bankrupt?
A business goes bankrupt when it is unable to pay off its debts to its creditors. This forces the business’ Licensed Inventory Trustee (LIT) to sell all the assets of the business to enable it to settle its creditors. In order to avoid this from happening, the owner of a business that is going bankrupt would need to file for bankruptcy in court or, preferably, contact a “Business Bankruptcy Lawyer.” Business bankruptcy lawyers always handle their cases professionally.
Job Description of a Business Bankruptcy Lawyer
A business bankruptcy lawyer is a legal and licensed attorney who specializes in giving legal advice about bankruptcy to clients in need of it. Generally, business bankruptcy lawyers could either appeal to the court on their client’s behalf to reduce or cancel debts or to seek unpaid debts. Here, we will pay special attention to the duties, qualifications, and salaries of business bankruptcy lawyers.
Duties of Business Bankruptcy Lawyers or Attorneys
Since the client or business owner may be ignorant of the actual court proceedings, the business bankruptcy lawyer would be required to:
- Prepare the legal documents needed by the court to open a bankruptcy case. This document is called a “petition” and it contains details about the client’s contact information, lawyer or attorney, bankruptcy chapter number chosen, and signature.
- Assist his or her client in making the best possible decision in a worst-case scenario to ensure that the debt is recovered. That is, the client is the creditor.
- create debt restructuring plans for their clients who are debtors. This would relieve the client of his or her debt.
- Handle the business bankruptcy case from the beginning to the end.
- Stand in court before the judge on behalf of the client and also attend telephonic court hearings.
- Manage the relationship between the client and the opposing party.
- Manage many other bankruptcy cases for different clients, along with their deadlines and tasks.
- Conduct Chapter 11 or Chapter 13 debt payment plan reviews.
- Collaborate with senior attorneys, paralegals, assistants, or partners to ensure that the case is properly handled.
- Give legal advice to the client on the federal rules and regulations regarding bankruptcy cases.
- Handle and organize all other documentation that will be asked for by the court.
- Manage every case assigned in such a way that the goals and expectations of the client will be met.
- Take care of any other projects or crises that may arise.
Qualifications for Business Bankruptcy Lawyers
A business bankruptcy lawyer is meant to be properly equipped both educationally and character-wise, just like in all other professions.
Educationally, here are some necessary qualifications needed for a person to become a business bankruptcy lawyer:
You must have your high school diploma.
During your four years of study in high school, it is essential for you to take classes that will build your foundation in bankruptcy law. Math, English, and sciences, as well as history and communication, are all required courses for aspiring business bankruptcy lawyers.
More so, you must graduate with a sound GPA (grand point average) and SAT (scholastic aptitude test) score.
You must earn a Bachelor’s degree.
A major in pre-law courses focused on reading, writing, critical thinking, and analysis is a significant step toward becoming a business bankruptcy lawyer.This usually takes three or four years. Some examples of these courses are
- Criminal Justice
- Political Science
- Government etc.
You must earn a Juris Doctor (J.D.) degree.
After earning your Bachelor’s Degree in a pre-law course, you must apply to an accredited law school and sit for the Law School Admissions Test (LSAT) and pass successfully. Obtaining the Juris Doctor (J.D) degree takes three years.
Apart from full-time, there are part-time and evening programs made available. You can as well choose to get a Master’s Degree in Law (LL.M.) to broaden your knowledge.
You must pass the written bar examination.
This exam is conducted in every state. An aspiring bankruptcy lawyer ought to sit for the two-day exam in his or her own state.
Passing this exam is what gives you the license to practice and become a business bankruptcy lawyer.
You must attend additional programs.
No one would like to work with a fresher in his or her business. As such, aspiring business bankruptcy lawyers must seek out experience through programs like internships, part-time jobs, etc.
Below are the character-wise skills needed to become a business bankruptcy lawyer:
This skill is necessary because it will be needed when taking legal action in reviewing documents, interviewing witnesses, taking their statements, and in all other legal procedures.
As an aspiring business bankruptcy lawyer, you will need to be well-versed in mathematics. Why? This is because a lot of calculations exist in this field.
And so to prevent overpayment of debts and charges or confusion as a whole, you as a bankruptcy attorney will need to have adequate mathematical skills.
A bankruptcy lawyer must be able to non-aggressively convince the court to make a decision that would favor the client.
A bankruptcy lawyer may also be needed to appeal to the creditor(s) to reduce the debt charges. This is best done by coming to a compromised agreement.
Becoming a bankruptcy lawyer means that you will deal with so many severe cases at once. So, you must be able to manage all the cases and yet stay on top of the deadlines.
And as a good business bankruptcy attorney, you must be successful in all your cases.
Bankruptcy laws can be so plenum and confusing. As a business bankruptcy lawyer, you should be able to explain the laws to your client in an easy and crystal-clear way.
It also takes good communication skills to interact peacefully with the opposing party and the court. Being fond of software apps like MS Word or Excel helps to improve your communication skills in writing.
If you want to be a business bankruptcy lawyer, you should be able to draw information from both legal and non-legal sources to make the best possible choice for every bankruptcy case.
You should also be able to dig deep to find a permanent way for the business to get out of bankruptcy.
General Good Work Ethics
To be a successful business bankruptcy lawyer, you must be able to work as quickly as each task requires. Being proactive is a major step in getting the job done successfully.
You should also be time-conscious and sensitive, as bankruptcy law is a fast-paced job.
The Salary of Business Bankruptcy Lawyers
Business Bankruptcy Lawyers’ salaries have certain factors influencing them. Some of these factors could be
- Your location. Business Bankruptcy Lawyers are in high demand in cities where the majority of the population is involved in business, whether small, in partnership, or corporately.
- your certification and education. Business Bankruptcy Lawyers who graduate successfully from prestigious colleges like Yale tend to be more valued and respected. As a result, they are paid more than other regular graduates for the same services provided.
- Your Status. The pay of a locally known business bankruptcy lawyer and a nationally recognized business bankruptcy lawyer will never be the same. The nationally recognized bankruptcy lawyer would obviously earn more as he or she has built up a name of higher status.
- Your Experience. Individuals and businesses looking to file for bankruptcy will always look for the best attorneys with a track record of success. And as such, these experienced bankruptcy lawyers would end up being paid much more than casual bankruptcy lawyers.
Nonetheless, the average salary of business bankruptcy lawyers is $68,845, as of September 26th, 2022. Therefore, the salary range falls between $52,000 and $96,000.
How Can I Find Business Bankruptcy Lawyers Near Me?
Being able to find a business bankruptcy lawyer nearby is one thing, but finding a “good” business bankruptcy attorney is another. Get the best Chapter 11 or Chapter 13 attorneys for your bankruptcy case by visiting sites like…
Here is another way of contacting a law firm to get a small business bankruptcy attorney:
What are Chapter 7, Chapter 11, and Chapter 13 bankruptcies?
All these Bankruptcy Chapters typically provide reorganization plans for businesses to keep them functioning while paying off their debts.
Features of Chapter 7 Bankruptcy
This Chapter is eligible for debtors that are corporations, small businesses, or individuals. Chapter 7 bankruptcy can also be called “liquidation bankruptcy”.
Here, the individual or business will be required to sell off its assets and liquidate to pay off the debts. This is because the stage of the business’ bankruptcy is way past reorganization.
The debts of this business will only be forgiven after all its assets have been sold off. The Bankruptcy Court will choose a trustee to make sure that the creditors are paid back in the right order.
Features of Chapter 11 Bankruptcy
This chapter is eligible for just businesses, which include corporations, limited liability companies (LLC), and partnerships. It can also be called “Reorganization Bankruptcy”.
Here, the law (Chapter 11) permits the business to reorganize its debt and pay them off gradually. This could be by selling some of its assets or by renegotiating its debts with the creditors. The Court supervises every step taken to clear the business’ debts.
While in Chapter 7 the business will need to liquidate, Chapter 11 permits the business to keep running as all of its debt must be paid off even through future earnings.
Features of Chapter 13 Bankruptcy
This chapter is eligible for all individuals so long as they have a stable income and a debt charge limit of $2,750,000. It is also called a “Wage Earner’s Plan.”
The Chapter 13 Bankruptcy Law allows individuals to pay off their debts within the range of three to five years.
A trustee is appointed under Chapter 13 bankruptcy law to distribute payments to creditors. The trustee also ensures that there is no direct contact between the debtor and the creditors.
Just like in Chapter 11, in Chapter 13 individuals’ businesses do not need to be liquidated.
I would always advise people or businesses filing a bankruptcy case in court to get a business bankruptcy lawyer or attorney. This will definitely help to avoid making dreadful decisions that will affect your business for a long time.
Other types of lawyers
If you do not match the qualifications or requirements of a business bankruptcy lawyer, there is no need to kill your interest in law as there are many other areas of law you can readily fit into. Below are some of the other kinds of lawyers you can become:
- Family Lawyer
- Corporate Lawyer
- personal injury lawyer
- Labor Lawyer
- Immigration Lawyer
- Environmental Lawyer
- Tax Lawyer
- Civil Rights Lawyer
- Divorce Lawyer
- Real estate lawyer
- Patent Attorney
- Public Defender
- Contract Attorney
- Construction Lawyer
- Entertainment Lawyer
- Property Lawyer
- Toxic tort lawyer
- Associate General Counselor
- Medical Lawyer
- Intellectual property attorney
- Trial Attorney
- criminal lawyer, etc.
In my opinion, when experiencing any form of business bankruptcy, get a business bankruptcy lawyer and a business management analyst, be it a small business or a corporate business. They are trained for these kinds of jobs, and so they will ensure you walk away with a smiling client.