Frequently Asked Questions in Financial Restructuring & Bankruptcy Law
Is a trustee automatically appointed if an organization files for bankruptcy?
No. A trustee is appointed in some cases but not all. You can still retain a great degree of authority over your business.
Does bankruptcy always end in a shutdown or closing of the business?
No. Many times, bankruptcy means restructuring the business and finding ways to make it solvent again.
Can the business still get credit while in bankruptcy?
Yes. Bankruptcy does not automatically mean that other institutions will stop extending credit. Indeed, some cases involve consolidating debt and finding new lenders.
Is it true that we need a bankruptcy lawyer only if we are in litigation or have had a judgment passed against us?
Not necessarily. It is true that lawsuits and judgments are two common events that compel business owners to seek out a bankruptcy attorney. However, there are other signs you need such an attorney, including a forbearance agreement on your loan expires, your bank has asked you to take your business elsewhere, your business is about to go into receivership, or your organization is not in default but needs refinancing (and you are having trouble getting it).