Why Should You Hire A Business Transaction Lawyer?

Hiring a lawyer is more like visiting a doctor. No one likes to visit a doctor for a common cold. We keep delaying it till we are down with a pneumonia and it starts hampering our daily work schedule. Most business owners are faced with this dilemma before commencing a venture: Should I hire a business transaction lawyer upfront? Or, can it be delayed till a major legal issue comes up? 

Preventive action is always better than a corrective one, from both monetary and logistics standpoints. A business litigation lawyer charges you only a minimum fee to keep you out of trouble in comparison to the fees he charges to pull you out of trouble. This is in addition to all legal tangles you have to unwind yourself out of in the courts or in an out of court settlement. It's always advisable to hire the services of a reputed business transaction lawyer before venturing out in a small business formation or a large business formation. 

What are the areas where adequate legal help will be required for starters? They can range from dealing with legal issues related to purchasing property, business registration rules and regulations, complying with labor laws, preparation with filing of a multitude of business taxes like Federal, State and local tax returns, dealing with disgruntled employees suing the company and even basic steps like preparation of business contracts and offer letters. Business transaction lawyers also help out in document preparation, preparing negotiation clauses, applications for various operational and safety licenses and maintaining a formidable legal potential for the business from potential disruptions. From copyright and trademark issues to dealing with lawsuits and liabilities, business litigation lawyers are involved every bit. Often the owners of a business and entrepreneurs don't have a complete knowledge of all legal bases to be covered, while the risk of oversight is always present. The services of a lawyer are essential to ensure that your business is functional and compliant.

Services of an individual lawyer or a law firm?

Once you decide on availing the services of a business transaction lawyer, you will be faced with the options of hiring an individual lawyer or a law firm? Over the past decade, the roles and domains of lawyers have become extremely specialized. It might be too big an ask for a solo lawyer to deal with all aspects of your business. Of course, the decision depends upon your budget allocations too as the services of a law firm are costlier by the hour. But the advantages of a law firm are manifold. Often it becomes extremely cumbersome for an individual lawyer to deal with issues from handling lawsuits to negotiating for real estate spaces, filing for trademarks and overseeing patents to drafting software license sharing agreements, terminating a problematic employee to drafting minutes for a corporate general meeting. Very often it happens that the business owners have to avail the services of 2-3 individual lawyers who can refer cases to even more specialized lawyers. Law firms are a single stop solution for all legal issues. Secondly, the weight and authority of a letter from an eminent law firm having offices across all States is much more in comparison to that from an individual lawyer who might not be even practicing in a particular State in question.

How to Deal With Bankruptcy

Financial stress is a problem affecting a major section of the World's population in this age of easy credit and competitive consumerism. If the finances are not carefully managed, the debts can easily blow up in a very short time to a point of no return. This is a fact which applies to both domestic and corporate finances. In the absence of adequate and timely corrective measures, finances can go down the route of liquidation and bankruptcy. Contrary to popular perception, the term bankruptcy doesn't signify the end of the world. Instead, under dependable legal guidance, declaring bankruptcy gives an opportunity for someone in acute financial stress to make a fresh beginning. If a strict financial discipline is maintained, bankruptcy gives a chance to start with a clean slate within the next 5-7 years.

At the onset it should be clarified that opting for bankruptcy is not the cure-all for all financial troubles and neither does all financial scenarios qualify for bankruptcy under New York Bankruptcy Law. Appropriate legal advice is the very first step before proceeding to declare insolvency. The second step is to determine whether bankruptcy should be declared under Chapter 7 case or under Chapter 13 or Chapter 11, as per provisions of New York bankruptcy law. As per Long Island Bankruptcy Law, in a Chapter 7 case most debts can be eliminated while in a Chapter 13 or Chapter 11 case, the debts can go for a reduction or cure under a reorganization plan.

In consultation with reputed and dependable lawyers, it should be finalized what should be the best way forward as it depends upon an individual's net expected cash inflow from different sources of income in the years ahead. Care should be taken to verify the antecedents of the lawyers handling the case, as it often happens that a few years down the line, the client remains saddled with burgeoning debts along with inflated bills from lawyers who take advantage of the situation and work towards making a kill from someone's financial compulsions. The overall fees required for filing a bankruptcy plea along with a Long island Bankruptcy lawyer's initial fees should also be clearly estimated by the client. The charges for bankruptcy under Chapter 7 is $306, while for that under Chapter 13 is $281 for both an individual and a married couple. The court may allow for the payment of this fee in installments if the entire amount is not available upfront.   

Before filing for bankruptcy extreme care and discretion should be displayed in financial spending. Whatever liquid assets are with an individual shouldn't be used to pay off individual debtors or making undervalued payments. Such payments made prior to declaration adversely affect the case of bankruptcy pleas. The bankruptcy trustees can declare all such payments null and void and even reverse the payments. An individual should only make necessary monthly payments like utility bills, rent, mortgage dues or taxes in the intermittent period. If an individual feels that any such payment has been made which might reflect badly on the bankruptcy litigation, the best options is to simply wait before filing. With time, all such unwanted transactions get erased from the particular period of credit record accessed by the trustees.

Once an individual has carefully weighed out all above options and decided on filing a bankruptcy plea, it should be the end of mental agony and financial stress and incessant pressure from creditors. All creditors are restrained from making individual claims and exerting any sort of pressure. If financial issues are taken care of prudently, the affected individual will again get an opportunity to live a debt free life with dignity.

FAQs on Bankruptcy

FAQs

1. What is Bankruptcy?

Bankruptcy is a legal proceeding in which an individual who is unable to pay his or her financial bills is granted relief from creditors by the federal court. Filing for bankruptcy immediately puts a stay on all creditors seeking to collect their debts from you or at least till your financial issues are sorted out according to legal procedures. As per Long Island Bankruptcy Law, in a Chapter 7 case most debts can be eliminated while in a Chapter 13 or Chapter 11 case, the debts can go for a reduction or cure under a reorganization plan. The best way forward should be decided in consultation with a New York Bankruptcy Lawyer.  

2. How does Bankruptcy affect me?

Bankruptcy dispenses with the lawful commitment to pay the most or entirety of your debt. This provision "discharge of debts is intended to give the debtor a fresh beginning on the financial front. It prevents foreclosure on your house and presents you with a chance to catch up with missed installments. It re-establishes or avoids disconnection of utility services. New York bankruptcy Law also allows for a challenge to be mounted against claims of creditors who are fraudulently trying to extract more than the amount owed.

3. What doesn't Bankruptcy change?

Bankruptcy, under New York bankruptcy Law, is definitely not the cure all for all financial stress nor it is a general solution for anyone in high debt. As per Long Island Bankruptcy Law, It is not possible to eliminate the claims of a secured creditor who has taken a mortgage on property as a security for a loan. The creditor can be forced to take structured payments over time or be prevented from asking for money if a property is already taken. Bankruptcy litigation also cannot eliminate certain special debts like child maintenance, fines related to criminal cases, alimony, divorce related payments and certain Govt. taxes.

4. What are the options other than bankruptcy?

While declaring bankruptcy is chosen by debtors in genuine issues involving financial stress and overburdening, financial insolvency is not always the only option. Creditors can be reached for out of court settlements, where the loan amount can be restructured and payments can be rescheduled. Negotiations are often the preferred way for unsecured debts like credit cards, where successful negotiations can sufficiently lower the payable amounts. Bankruptcy litigation lawyers often negotiate most debts on behalf of clients, including credit card, mortgage, tax and other debts.

5. What does it cost to file for bankruptcy?

The charges for bankruptcy under Chapter 7 is $306, while for that under Chapter 13 is $281 for both an individual and a married couple. The court may allow for the payment of this fee in installments if the entire amount is not available upfront. The charges of Long Island Bankruptcy Lawyers are payable as mutually agreed upon.