Finding the Right Business Debt Relief Lawyer in Fort Worth, TX
Running a business is hard work. There are so many moving parts – managing employees, attracting customers, dealing with regulations, staying on top of your finances. It can be overwhelming. And when you fall behind on business debts, whether it’s payroll taxes, vendor bills, or business loans, it can feel like your back is up against the wall. That‘s why, if you‘re a business owner struggling with debt in Fort Worth, it‘s important to find an experienced business debt relief lawyer who can help you navigate your options.In this article, we’ll walk through some of the common debt issues that Fort Worth businesses face, explain your legal options, and provide tips on finding the right business debt relief attorney for your situation. We know that dealing with business debt can be stressful and confusing. Our goal is to break things down in simple terms so you can make an informed decision about next steps.
Common Business Debt Problems in Fort Worth
There are a variety of reasons a Fort Worth business might find itself in debt trouble. Here are some of the most common scenarios:
-- Cash flow problems – It’s tough when your business income isn’t steady or predictable. The ups and downs of cash flow can make it hard to stay current on your recurring debts like rent, utilities, payroll, etc. Before you know it, you’ve fallen months behind and creditors are threatening legal action.
- Lawsuits and legal judgments – Getting hit with a lawsuit, even if frivolous, is never fun. Defending a lawsuit is expensive. And if you end up losing and face a legal judgment, the plaintiff can pursue aggressive collection actions like wage garnishment or bank account levies.
- Tax debts – Falling behind on payroll taxes, sales tax, or other business taxes can put you in hot water with the IRS or state tax authorities. Their collection powers are intense – they can seize assets or shut down your business.
- Business loans/lines of credit – Defaulting on a business loan or line of credit can lead to collection harassment, lawsuits, and other creditor remedies. Missed payments also tank your business credit score.
- Vendor debt – When you fall behind on paying business vendors (suppliers, contractors, etc), they may refuse to work with you anymore until you become current on what you owe. This can cripple operations.
As you can see, struggling with business debt isn’t just stressful, it can directly threaten the viability of your company if you don’t take action. The good news? There are legal options to help, which leads us to…
Debt Relief Options for Fort Worth Businesses
The debt relief landscape can be complex, but generally there are three main paths a business can take when dealing with unmanageable debts:
Debt Settlement
Debt settlement, also called debt negotiation, is where you work with creditors to settle outstanding balances for less than what you owe. An experienced business debt relief lawyer will negotiate with creditors on your behalf to try and persuade them to accept a discounted lump sum payment in exchange for calling the debt satisfied.The pros of debt settlement are that it’s faster and less complex than bankruptcy. If successful, you could end up paying a fraction of what you owe. The downside is that creditors are under no obligation to settle, so it doesn’t always work. There’s also a risk of getting sued if negotiations break down.
Business Bankruptcy
Declaring Chapter 7 or Chapter 11 business bankruptcy is a legal proceeding where you liquidate assets to pay creditors, get debts discharged, or restructure debts under court supervision. Chapter 7 is liquidation while Chapter 11 is reorganization.The main benefit of business bankruptcy is that it automatically halts collections and lawsuits. The court essentially takes over management of your debts. Liquidation can wipe out unsecured debts while reorganization lets you restructure debts so your business can try to get back on its feet.The cons are the legal complexity, legal fees, and damage to your business credit. Bankruptcy also requires liquidating assets. But for many businesses facing insurmountable debts, a bankruptcy filing is the only viable path forward.
-Informal Agreements
If your business debts are relatively small, you may be able to reach informal payoff agreements directly with creditors. This avoids legal proceedings. But to make it work, your creditors have to be willing to negotiate reasonable terms.The benefit here is avoiding the complexity of formal debt relief options. The risk is that informal agreements aren‘t legally enforceable – if a creditor changes their mind down the road, you could get sued. So informal agreements only make sense for minor debts.As you weigh debt relief options, an attorney can advise which path is right for your specific situation. There are pros and cons to each approach. An experienced business debt relief lawyer in Fort Worth can guide you through the process.
Finding the Right Attorney for Your Business
Not all lawyers have experience with business debt relief. It‘s a specialty field. When researching attorneys, look for these important qualifications:
- Expertise in business law – You want someone well-versed in the unique legal issues facing businesses like yours. Understanding business structures, contracts, finance, etc. allows an attorney to give tailored guidance.
- In-depth knowledge of debt relief options – An attorney experienced with the nuances of business debt settlement, Chapter 7 and Chapter 11 bankruptcy, and informal agreements will explain the pros/cons of each so you can make an informed decision.
- Litigation experience – In case creditors sue or you need to bring lawsuits related to the business, litigation skills are a plus. An attorney comfortable in court can vigorously defend the business.
- Understands the local legal landscape – Business debt relief law varies somewhat by state. A Fort Worth attorney will understand the unique local rules, processes, and even the tendencies of local judges. This helps them navigate the system.
- Responsive communication – Going through debt relief is stressful. You need an attorney who is easily reachable and keeps you updated each step of the way in clear language you understand.
- Reasonable fees – Cost is always a consideration. Look for fair, transparent rates and fee structures from attorneys before agreeing to work together.
- Positive reviews – Check online reviews and the BBB profile. An attorney with a good reputation for helping other Fort Worth business owners get debt relief is a positive sign.
To find a qualified Fort Worth business debt relief lawyer, ask around for referrals from business peers or your accountant/financial advisor. You can also search legal directories like HG.org or the State Bar of Texas.When comparing attorneys, don‘t hesitate to ask questions upfront about their experience, fees, and track record getting results for business clients.