Hiring a Indianapolis Bankruptcy Attorney

Online, September 19, 2013 (Newswire.com) - One of the most important decisions that management will make prior to filing a Chapter 11 case is the selection and retention of a competent and experienced bankruptcy attorney. The American Bankruptcy Institute, the American Bar Association, and other bar organizations have certification programs for bankruptcy attorneys. In addition, the general corporate counsel or accountant of the business is likely to be well-acquainted with experienced and reputable business bankruptcy attorneys in the community. There is a difference between Indianapolis Bankruptcy Attorney who specializes in business bankruptcies as opposed to consumer bankruptcies.

Attorney Specialization

Attorneys who specialize in consumer bankruptcies will typically represent individuals in Chapter 7 or Chapter 13 cases. Attorneys who specialize in business bankruptcies can include those who primarily represent creditors, such as banks and other financial institutions. A business needing bankruptcy assistance in order to reorganize needs a business bankruptcy attorney that specializes in representing debtors in Chapter 11 cases. Ask questions about the number of Chapter 11 cases that the attorney has handled for a debtor. Ask questions about the number of successful versus failed Chapter 11 cases. Ask questions about the number of Chapter 11 cases from which the attorney withdrew. Shop around (although cheaper is usually not better). A substantial retainer is usually required by most experienced business bankruptcy attorneys before filing a Chapter 11 bankruptcy case because: (1) die process is complex, die court's requirements are numerous, and die fights may be contentious and frequent; (2) deferring the payment of a large administrative claim does not serve the interest of the business when such claim would have to be paid before the business can successfully emerge from its bankruptcy; and (3) the Bankruptcy Code prohibits the attorney from being retained by the business during the bankruptcy case if the attorney has unpaid outstanding fees before filing the case.

Things to Consider

Be wary of Indianapolis Bankruptcy Attorney who present themselves as Chapter 11 bankruptcy experts but quote a substantially reduced retainer. The cost of the retainer may be nothing compared to the costs of the harm to the business caused by an attorney who has limited experience with commercial and business reorganizations. A business that does not have proper guidance in a Chapter 11 case can find its case converted to Chapter 7 and its assets liquidated over its objections, its management ousted by the appointment of a trustee, its relationships with creditors jeopardized, or its business taken over or purchased by a competitor.

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