With power comes privilege, and in the case of corporations in bankruptcy cases, the power of attorney means these organizations will definitely be bringing a high-priced Chapter 11 attorney along for the ride. Hiring a Chapter 11 lawyer will likely be standard procedure for any company looking to reorganize and can be involved in any standard legal procedure surrounding decisions reached in bankruptcy court. Meanwhile, should the need for more directed litigation be apparent, a Chapter 11 attorney will also be invaluable for the corporate debtor. In all, a Chapter 11 lawyer will essentially be a must-have for applicants to ensure that their rights are protected.
Some of the major functions of legal representatives in Chapter 11 cases:
Of course, a Chapter 11 attorney should be proficient in general aspects of the law, as well as bankruptcy law. Of course, a legal professional most often comes to mind under more adversarial circumstances and under the accusation of some wrongdoing.
Policies are built into the Bankruptcy Code to cover the event that a bid for bankruptcy protection is charged to be made in bad faith or through fraud, as well as in objection to a debtor’s discharge from debt, their stay from collection, or reasons why a case should not be dismissed. In this case, a Chapter 11 lawyer will be on hand to argue for the client on his/her/their behalf and request more time/clemency.
Then again, a Chapter 11 attorney may serve his or her client in an adversary hearing brought about by the client. Notably when a debtor seeks to avoid a lien (sale of a property by a creditor) or prevent the case from being converted into a Chapter 7, a bankruptcy attorney’s services will likely be invaluable.