There are several ways to file for bankruptcy should you struggle with small business debt. Bankruptcy litigation deals with litigation in the context of the Bankruptcy Code and bankruptcy as well as the Federal Rules of the Bankruptcy Procedure. Once a debtor files for bankruptcy, the court would then issue what is known as an automatic stay thereby halting all collection activities immediately. Creditors would no longer be able to get in touch with the business who filed for bankruptcy about the outstanding debt.
Filing for a Lawsuit
According to the bankruptcy code, creditors may not file for a lawsuit or even proceed with it once debtors filed for bankruptcy. However, should the court dismiss the debtor’s bankruptcy case in which case the business owner will no longer be protected by the stay, the creditor would be able to proceed with the pending lawsuit against the business owner or debtor.
Why File Bankruptcy
It makes logical sense for a business in a financial hiccup to file for bankruptcy as it will prevent judgment being enforced. When filing Chapter 7 almost all money judgments would be eligible for discharge. While Chapter 13 would allow businesses to pay the set judgment amount according to a court-approved payment plan. To help them through the tedious process of notifying creditors and getting the court to take the necessary action in favor of the business owner, they would need reputable law firms like Chung, Malhas, & Mantel to handle matters on their behalf.
What is up with Corporate Litigation?
Corporate litigation on the other hand is the legal representation of business enterprises who are involved in lawsuits. Defendants would often range from general partnerships to international corporations. Corporate litigation law firms like Chung, Malhas & Mantel are reputed lawyers who would initiate civil lawsuits in order to defend clients rights who found all sorts of case brought against them. You can learn more about them by visiting http://www.ecclaw.com.
Corporate lawyers are also trained to take care of matters outside of court and represent clients in alternative dispute settlement or resolution. Some of the cases handed with regards to corporate litigation would be employment relations, breaches of contracts and regulatory compliance. Parties involved with corporate litigation would include directors, members and shareholders. You can sneak a peek at these guys and discover more at http://www.ecclaw.com/corporate-litigation-attorney-seattle/.
Some corporate firms would opt for liquidating their assets in order to prevent going bankrupt. Through selling their assets they would fetch a better price than opting for a bankruptcy trustee. This would mean they have more disposable income to pay of their creditors. This is especially useful if the business in question happen to have a lot of assets. Reputed law firms like Chung, Malhas, & Mantel would advise that corporate firms do not give away their assets below fair market value as they would have a duty to minimize the loss creditors would face.