Being in debt is anything but pleasant, and something all of us would more than gladly avoid. The reality, however, is quite different.The vast majority of small business and startup owners simply have to borrow money in order to a) get the company’s wheels in motion, b) keep their daily operations afloat (at least in the beginning), and if they’re successful, even c) expand the business.
Not everyone knows how to handle debt, though. We all make mistakes, after all. And sometimes, even with all the right knowledge, effort and hard work, certain factors that are out of your control can send your otherwise great enterprise into a screeching halt. Eventually, for one reason or another, business slows down and things go awry.
Even though you cannot be held personally liable for your business debt, you as a business owner are nonetheless responsible for finding a proper solution to get out of it. Sometimes, the best approach is to delegate this task to someone who is more adept at it than you are. The good news is that, thanks to restructuring and recovery legal experts, there is a way out of debt. Not only that, but you should snatch the opportunity to quickly regain the financial health of your business. To get it back on its feet, you will need a restructuring and recovery lawyer, and here’s the what, how and why.
What does a R&R lawyer do?
A restructuring & recovery lawyer will negotiate with your creditors and collection agencies on your behalf to change your current credit agreements; that is, to renegotiate the terms of your loans and settle debts for less than what is owed. Apart from helping with your debt and equity rescheduling and refinancing, a competent R&R lawyer can prove indispensable in drafting a restructuring and reorganisation strategy that can mean the very survival for your business. He or she will also advise you on debt consolidation, protect you against insolvent suppliers, renegotiate terms with vendors, and handle possible bankruptcy-related litigation.
Why do you need one?
Bear in mind that by having a professional on the case, you’ll profit from their expertise which (most likely) far surpasses your own. By clearing up some of your time and focus, you will also be able to devote more of your efforts to get your firm in full swing again (think networking, promotion techniques, price modification, etc.). It is also much more probable the creditors will get off your back once you have a competent legal expert by your side – or, at the very least, your attorney will take over the hassle of dealing with them.
Can you afford one?
There are many R&R lawyers and companies whose fees are integrated into the payments. In other words, you will not pay any more than you would have, had you made full payment on your outstanding debts. If you’re still on the fence about hiring one, think about the price you could pay in the worst-case scenario: hiring a lawyer to help you wiggle your way out of debt just might make the difference between having your loan renegotiated and losing your entire business.
Should you file for bankruptcy?
That really depends on many factors, such as whether your debt is only temporary (induced by an external factor you had no control over, for instance) and whether your business is otherwise viable. Given that bankruptcy is hardly a piece of cake to go through, we strongly suggest you hire the services of a skilled bankruptcy attorney. While it may be costly short-term, it will result in a reduced debt and help you snap back to business.
Dealing with debt, bankruptcy and restructuring plans isn’t something you should do on your own. Okay, paying money to hire someone when you’re already scraping by financially doesn’t seem like the soundest strategical move, we’ll give you that. However, the long-term benefits only a top-notch professional can bring you and your business will far exceed any short-term costs you may have to endure.
Get in touch and we’ll connect you to one of our legal experts. They are versed, utterly professional, and will help you put to rights your financial situation. With a Linkilaw lawyer on board, you can focus on regaining your business strength without having to rack your brains on how to get out of your debt.