Business Bankruptcy - Selecting a Good Lawyer

Bankruptcy lawyers usually specialize either as debtor's counsel or as creditor's counsel. If you're having credit problems or are looking to file bankruptcy, you're definitely going to want a lawyer who has expertise as debtor's counsel. If you have a claim against someone who filed bankruptcy, you're going to want a lawyer with experience in representing creditors like yourself.

You already have a list of prospective lawyers. Now you want to find out every thing you can about the lawyers, and then do some initial screening to whittle down your list to three or four prospective candidates.

• Look at the biographies and Web sites for the lawyers and their law firms. Do they appear to have expertise in the area of business law that you need? Do they have any information on their Web sites that is helpful to you?
• Look for a list of representative clients. Are they the types of clients that you'd want your lawyer representing? Does the lawyer represent other businesses similar to yours?
• Search the Internet under the name of the lawyer and his or her law firm. Can you find any articles, FAQs or other informational pieces the lawyer has written that give you a level of comfort?
• Ask other people if they have heard of the attorneys and what they think about them.
• Contact your state bar association or go to their Web site to find out if the lawyer is in good standing.
• Check out the yellow pages of your telephone directory. Does the lawyer advertise? If so, do you find the ad compelling? Helpful? Tasteful?
• Check out the archives of your local newspaper. Has there been any publicity about the lawyer or the cases that he or she has handled?
• Consider any special needs you have. For example, could you benefit from an attorney who speaks a language other than English?

You shouldn't necessarily cross a lawyer off your list just because he or she didn't have the time to meet with you on short notice. Good bankruptcy lawyers usually have high-volume practices. Sometimes this is by necessity, as people filing bankruptcy aren't usually in the position to pay a lot in attorney's fees, so lawyers need the high volume to make ends meet. As a result, they may not be able to spend a lot of time responding to inquiries from prospective clients. You should also expect that whomever you hire might have to delegate a lot of responsibility to his or her staff.

Debtor's counsel will usually charge a flat fee for a simple bankruptcy. The rates tend to be competitive, so you might want to shop around if you're looking to file bankruptcy. Creditor's counsel usually charges by the hour.

For people filing bankruptcy, hiring debtor's counsel will hopefully be a one-time experience. But if your business routinely has to deal with customers filing bankruptcy, you should think about retaining a lawyer or law firm with expertise to cover all your anticipated business needs.

Look to see if a lawyer is connected with associations that cater to your legal issues. For example, most bar associations have sections in bankruptcy law and other related categories.

Unless there are special circumstances, you'll want to hire a lawyer with an office that is not too far away from your business.

Before You Meet With A Lawyer

• Ask for references. You'd want to talk to people who could comment on the lawyer's skills and trustworthiness. Get a reference from a bank and from other lawyers. A bankruptcy lawyer should also be able to give you the names of several CPA's as references.
• Ask about conflicts of interest. Does the lawyer represent any potential alliance partners? Does the lawyer represent any of your competitors?
• Ask for a copy of a firm brochure and promotional materials the firm may have. Crosscheck these materials against your other sources and references.

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