Bankruptcy

Bankruptcy in the United States is governed by the U.S. Bankruptcy Code.Different types of bankruptcy filings are governed by specificsections of the Bankruptcy Code. The types of bankruptcies are: (i)reorganization under Chapter 11 for corporations and individuals,(ii) liquidation under Chapter 7 for corporations and individuals,(iii) Chapter 13 for individuals, and (iv) Chapter 9 for municipalities. Another type of bankruptcy proceeding in the United States are proceedings under Chapter 15 of the Bankruptcy Code, whichallows foreign companies, with assets located in the United States,to seek an injunction of all proceedings that would take their assets from them.

Bankruptcy can be considered a special proceeding, with the creation of aspecial set of courts and judges handling these cases. Corporations,municipalities and individuals who seek protection under the Code aregiven so-called "fresh start" by reorganizing their businesses and finances and ranking their creditors by order of priority. The goal of the Code is to allow a debtor to emerge from bankruptcy with a better business structure, or, in the case ofindividuals, a plan for a better management of finances. Bankruptcy is not adversarial in nature, although adversary proceedings may arise from issues relating to bankruptcy.

Lenders, who are often big banks and financial institutions, are firstpriority in the rank of creditors in bankruptcy proceedings. There are also numerous "small" creditors who need a strong voiceto represent them in bankruptcy proceedings. These small creditorsusually include workers who lost their jobs as a result of a debtor'sfinancial difficulty or who are on the verge of losing their jobswhen a debtor decides to halt their operations. The recent decline inoil prices resulted to the bankruptcy filings of numerous oil and gas companies, resulting to the retrenchment of hundreds of workers. Workers file claims for unpaid wages and benefits and retirees.Workers also seek compensation for damages arising from death orpersonal injury as a result of exposure to toxic minerals orchemicals used by bankrupt companies in the operation of their business. Moreover, small creditors include retirees, whose benefitsare often cut or terminated within the course of the bankruptcy proceeding as a cost-saving strategy for the ailing debtor. Retirees,old but have contributed significantly to the company, join the ranksof lenders to seek to have their benefits reinstated and continued.If not represented by a bankruptcy specialist, these small creditors may find their voices lost among the big corporate lenders.

Divorce,illness, student loan debt, and unpaid mortgages are some of thecommon reasons why individuals seek bankruptcy protection, either under Chapter 11 or Chapter 13. When the individual's bankruptcy proceeding is caused by divorce, the individual debtor needs expert representation by a bankruptcy attorney who is not just knowledgeableof the bankruptcy law but also of divorce law, child support andchild custody. In instances when an individual seeks bankruptcy proceeding as a result of staggering student loan debt or unpaid mortgage, the debtor's attorney also need to match the skills of attorneys representing the student loan provider or the mortgagee, which are often big companies equipped with a legal team ready to quash a creditor.

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Business Law - Legal Information and Resources

Business Law

Business law governs the operation of businesses, from its formation (business organization) to its demise (bankruptcy or liquidation). Business law also governs the transactions between businesses, between business and government, and between business and the public. Traditionally, business law encompasses certain areas of law, such as business organizations, tax law, securities regulation, finance law, and bankruptcy. Business law, however, has developed through the years to include many other branches of law, such as environmental law, advertising law, intellectual property law, and labor law. With the advent of online selling, business law has expanded its claw to virtual stores, subjecting them to similar, if not the same, rules and regulations as brick-and-mortar businesses.

Business law attorneys are hired for transactional work. This means, they do not represent clients in court. Rather, business law attorneys are hired to prevent the business from getting into litigation. One of the major work done by business law attorneys is the drafting of contracts. Business law attorneys need to be experts in numerous areas of the law to make sure that a contract is drafted in accordance with the Uniform Commercial Code adopted in a specific jurisdiction. A well-executed contract means a business and the counterparty is confident that both of them will perform their obligations in accordance with the contract.

Formation of a business is a tedious job that needs the expertise of business law attorneys. Even before a business opens its doors for trading, it needs to be compliant with numerous laws regulations. Non-compliance of these regulations would mean no permit for trading or the imposition of sanctions. Choosing the type of business -- single proprietorship, partnership, corporation, and limited liability companies -- alone is already a daunting task that can only be undertaken by someone who is knowledgeable of the matter. A business can be further customized -- to "S-corps" as save taxes, or "limited partnerships" for some owners to participate solely as investors -- depending on the needs of the company. For most companies, the primary purpose in selecting a certain business form is to protect the owners from individual liability. Without the assistance of an expert business law attorney, owners may be putting all of their personal assets within the reach of creditors should they choose a business form without prior expert counsel. In addition to the formation of a business, expert counsel from business law attorneys is also needed in the drafting of internal agreements on how a company should be managed. Internal agreements are sensitive documents as it governs how owners will share profits and losses, make important decisions, and transfer ownership rights.

Another complicated matter that could arise in the operation of a business would be commercial transactions. Business owners are capable of dealing with certain commercial transactions; however, there are commercial transactions that are too complicated and touches on evolving areas of law that an expert counsel must be sought upon. These transactions may involve such laws as securities regulation or internet commerce. Aside from providing transactional services to a company, business law attorneys also provide an objective insight on the company that business owners may fail to possess as they often put their hearts into managing their business.

Areas of Law