As lawyers, we are used to dealing with complicated situations as things go bad financially for people, farms, and businesses. By the time we meet our clients, they’ve usually exhausted non-bankruptcy options to keep their business or farm going or avoid consumer bankruptcy. They may have sold off otherwise exeFpormpt assets, borrowed from family, or taken other steps. We get it, nobody wants to be in bankruptcy if it’s avoidable.
But there are good financial times when it makes sense to see an attorney and talk through a financial plan. We may be able to save you time and money later if things go sour. It’s better if possible to address issues right away than try to fix past actions.
Two examples were talking to a lawyer is recommended
Purchasing of Real Estate by an unmarried couple
We often see unmarried couples purchasing real estate together. There’s nothing wrong with that. But what happens if the couple splits? That’s certainly not something either party intends to do when they buy the land, but it’s a possibility that can’t be addressed through a divorce and division of assets since there is no marriage.
Usually, one person ends up living in the house and paying the mortgage, while the other leaves. OK, but what happens if the occupier of the home stops paying the mortgage? The other party has a potential risk of foreclosure and damage to their credit. Or what if the party that moved out now wants to sell the home but the person living in the home wants to stay and pay? Suddenly two people with the same goal become adverse and hostile to one another. It would have been better if the parties had a contract that spelled out what would happen in this case instead of dealing with the expense of litigation.
An L.L.C. operated and administrated by a sole-proprietorship
A woman operates a single-member LLC to run a business. The business does extremely well and makes a substantial profit…until it doesn’t. Suddenly we have to review issues involving personal guarantees, how profits were spent, tax returns, payments to any employees, and other issues. Companies that turn profits should consider investing in good counsel to review situations and anticipate issues that can arise. If nothing else, it would make it much easier for this businesswoman to either sell her business or discharge liability in bankruptcy if these issues are considered early on.
A lawyer is useful when things are rough and we need to work through complicated financial issues. But sometimes the best time to get a lawyer is when it looks like you won’t need one when times are good. We’re happy to review your financial situation and give consideration to issues that could later arise, helping you out and saving time and money in the future. In good times or in bad, WM Law is here to help. For more information visit our website: www.kansascitybankruptcy.com