Bankruptcy and Insolvency (Business) Lawyers
When a company can no longer pay its massive debts and have not reached an agreement with its debtors, chances are it might file a case of bankruptcy. Bankruptcy is the legal declaration of a company's inability to pay its debts or regain its assets. The bankruptcy and insolvency law for businesses are designed to help companies who have this problem.
What is Bankruptcy and Insolvency (Business) Law?
The Bankruptcy and Insolvency law for businesses is the legislation that governs the bankruptcy of businesses. The creditor of the company can file a case of bankruptcy against it if it continues to be financial impaired up to the point that it can no longer pay its debts. This is called involuntary bankruptcy. Creditors usually do this to attempt to recoup or get back a portion of the money they have lent to the company. They can also do this to initiate a restructuring within the company. In most cases, however, it is the debtor or the bankrupt company itself who initiates or files a bankruptcy case. This is called voluntary bankruptcy.
Who Needs Bankruptcy and Insolvency (Business) Lawyers?
Bankruptcy can happen in an individual or organization. For bankruptcy and insolvency cases of businesses, the problem mainly focuses on a company or organization losing hold of their financial stability. Most of these companies can be in massive debts which they can no longer pay. It could also be that they can no longer keep up with the financial demands of their production process. Sometimes, the financial institution which they have owed money will petition them for insolvency and then bankruptcy. In most cases, though, the companies themselves would voluntarily file a bankruptcy case.
Bankruptcy and insolvency lawyers are needed in problems concerning the inability of the company to pay its debts. The financial institution which had lent the company money may hire the services of the bankruptcy and insolvency lawyers to pass their appeal or petition to court. The company reported for insolvency may also hire the services of such lawyers to defend their part of the story.
On the other hand, in cases that the company itself filed the petition for bankruptcy, the bankruptcy and insolvency lawyers are also hired to represent the company's petition to court. Bankruptcy and insolvency lawyers for businesses can help the company on the following aspects:
- Defend the company which has received a statutory demand
- Preventing an order for the winding up of the company
- Assist companies in bringing up various applications of bankruptcy and insolvency to the Supreme Court
- Assist in applying for the termination of the winding up of the company
- Assist in recovering debts
- Aid in obtaining court judgments
For more information on the scope of work of bankruptcy and insolvency lawyers, you can browse on the Internet or ask these layers personally. If you encounter problems regarding your debts and assets and want to know the legal side of this matter, better ask a certified bankruptcy and insolvency lawyer.