For many business owners, working with a bankruptcy attorney is often only considered in a worst-case scenario. And while bankruptcy lawyers are certainly experienced in helping companies navigate challenging financial situations, their expertise is not limited solely to formal bankruptcy proceedings. Any business, whether it is facing a decrease in income generation or increasing debts, can benefit from working with a bankruptcy attorney, which becomes especially beneficial if and when an economic recession takes place. Read below to learn more about how a bankruptcy attorney can help your business prepare for a recession.
Create a plan for economic expansion and recession
Many businesses don’t feel the need to develop a financial plan for a period of economic growth, but companies set themselves up for long-term success by following the advice of an experienced bankruptcy attorney. And while a plan for growth is essential, it is equally important to have a strategy for an economic downturn. For example, businesses must ensure they are always operating in a way that does not jeopardize a potential discharge from debt. Any action that indicates a company may try to overcome or cheat their creditors, such as fraudulent transfers or asset protection planning, can risk a bankruptcy proceeding in the future. A bankruptcy attorney recommends several different strategies in both good and bad financial scenarios that can help businesses thrive during economic growth or prepare for a downturn in profits and survive an economic recession.
Understand restructuring and reorganization
Restructuring and reorganization are some of the best tools a company can use to reach a mutually beneficial agreement between creditors and debtors. By working with a bankruptcy attorney before any serious financial problems arise, a business can have a plan ready to reorganize or restructure as soon as debts accumulate. In the event of a recession, an established strategy for restructuring and reorganization may help a business avoid filing for bankruptcy altogether and begin its recovery more quickly. Working quickly is often essential when it comes to bankruptcy proceedings, and an existing relationship and strategy with a bankruptcy attorney sets a company up for success before, during, and after an economic downturn.
Explore options for bankruptcy
Knowledge is power, especially regarding business decisions. And while no company ever wants to consider bankruptcy, business owners who are aware of all options before operating under the stress of financial challenges are better prepared to exit bankruptcy proceedings and help their business bounce back. A bankruptcy attorney examines a company’s unique features and recommends several different options should an organization encounter difficult circumstances with creditors or debtors. Chapter 11 bankruptcy, for example, allows businesses to pay back creditors and exit proceedings with a fresh start. Whether a company is in excellent financial standing or struggling with mounting debt, partnering with an experienced bankruptcy attorney prepares business owners for an economic recession, financial growth, and every circumstance in between.
Take advantage of a bankruptcy attorney’s expertise, and make sure your organization is prepared for any economic situation. At the Dallas law firm of Ritter Spencer Cheng PLLC, our team of business attorneys has years of experience in commercial bankruptcy proceedings and many other forms of corporate litigation. Prepare for the unexpected while ensuring success with the business law firm of Ritter Spencer Cheng PLLC.
