Corporate Law Case Do’s and Don’ts

If your business encounters financial trouble that cannot be resolved, you may need to declare bankruptcy. You should only take this course of action after serious consideration. And you should consult with a Richmond VA bankruptcy attorney before you take any official steps.

You and your executive team must proceed with care and caution. Here are a few tips:

Do:

1. Acknowledge when the company is in financial trouble. You should do this sooner rather than later.

2. Inform you creditors that you are having problems. You should remember that the people who lent you money want you to succeed. The more information you give your creditors, the more flexibility they will have to work with you.

3. Speak to an experienced Richmond VA bankruptcy attorney

4. Put your books and records in order.

5. Reserve the time necessary to help your lawyer complete the company’s bankruptcy petitions. You will also need to send representatives of the company to court hearings along with the bankruptcy lawyers in Richmond VA that you hire.

Don’t:

1. Expect the bankruptcy to solve all your company’s financial problems.

2. Forget a single creditor on your bankruptcy schedule.

3. Sell or transfer assets to friends or relatives. Nor should you attempt to set up phantom companies designed to hide assets from creditors or the bankruptcy court. Doing so will cause more problems than it solves.

4. Lie to or attempt to defraud the bankruptcy court. If you do so and the court finds out about it, which it inevitably will, the judge will dismiss your case. You can also be prosecuted for bankruptcy fraud.

The laws regulating corporate bankruptcy are incredibly complex. Only professionals who have mastered them can help you through the process. Canfield Wells are bankruptcy lawyers in Richmond VA who have the experience and expertise to help companies through tough financial crises. If your company is in financial trouble, you should call Canfield Wells.