Facing bankruptcy as a business owner can be overwhelming. Whether your business faces high debt, low cash flow, or lawsuits from creditors, filing for bankruptcy can be both difficult and the right decision for your financial future.

Choosing the right bankruptcy attorney can significantly impact the outcome of your filing. A skilled attorney can explain your options, help protect your personal assets, and assist you in developing a plan to move forward after your case is resolved.

Experience with Similar Business Bankruptcies

One of the first things you should look for in a bankruptcy attorney is experience in business bankruptcies similar to yours. Not all bankruptcy attorneys handle or have experience with business cases. For example, an attorney specializing in Chapter 13 bankruptcies for individuals likely isn’t the best choice to handle your Chapter 7 or Chapter 11 business bankruptcy.

Some questions to ask an attorney during your initial consultation are:

  • How many bankruptcy cases have you handled?
  • Have you worked with companies the same size as mine before?
  • Have you worked with companies in the same industry as mine before?
  • Are you experienced with reorganization or liquidation bankruptcies?

Michigan-Specific Knowledge and Insight

While bankruptcy law is federal, there are state-specific rules and court procedures that an attorney must be aware of. A Michigan-based bankruptcy attorney will have a better understanding of the state’s court system and may have working relationships with local court staff and judges. They may also have knowledge of Michigan laws you can rely on regarding asset exemptions, secured property, and continued business operations.

Clear Communication and Personalized Attention

Bankruptcies and the laws that govern them can be confusing, especially if this is your first time filing. However, the right attorney can explain the process and your options in plain language and keep you informed throughout every step. It’s important to select a firm that is willing to advise you about what’s going on at every step of your case.

During your initial consultation, you should pay attention to the following:

  • Does the lawyer take time to learn about your business and its unique challenges?
  • Is the lawyer responsive and willing to answer your questions?
  • Does the lawyer offer legal advice specific to your situation?

Attorney Fee Transparency

A business bankruptcy, particularly a Chapter 11 reorganization bankruptcy, can generate significant legal fees. You should be careful of attorneys who aren’t upfront about the costs of hiring them. Instead, look for an attorney willing to explain their fee structure clearly and go over the expected expenses for your case.

Questions to ask during your consultation include:

  • What is your hourly rate or other fee structure?
  • What additional costs might I encounter during my case?
  • What options are available for payment of attorney fees?

Client Reviews and Professional Reputation

Before selecting a bankruptcy lawyer, you should check their client reviews and look for indications of their professional reputation, including awards from peer-review organizations. A lawyer’s client reviews can tell you a lot about what it’s like to work with them and what to expect going forward. And awards can indicate how other lawyers feel about the one you are considering.

It’s best to choose a lawyer with positive client reviews and the respect of their peers.

Contact Our Michigan Bankruptcy Attorneys

If your Michigan business is facing bankruptcy, contact Marrs & Terry, PLLC, to speak with a knowledgeable and experienced bankruptcy lawyer. We’ll review your case and help you determine which chapter of the U.S. Bankruptcy Code applies best to your situation. Then, we’ll work with you to create a step-by-step plan so you know what to expect going forward.