Austin Bankruptcy Lawyer: Bankruptcy Effects On Real Estate
Bankruptcy is viewed as a very serious case for all. Generally, bankruptcies are only filed if the business is deep in debt due to a financial crisis.
When a company becomes bankrupt, it can have serious consequences for its real estate development. Filing for bankruptcy can have either positive or negative effects. It could cause a decline in the value of the company’s assets, which may affect the entire real estate market. Or, it may allow it to restructure its debts and emerge stronger from the crisis.
Austin bankruptcy lawyers can help businesses navigate these complex legal matters. They can provide advice and help companies restructure their debts so that they can emerge from bankruptcy with their finances in better shape.
Bankruptcy In Texas
In Austin TX, bankruptcy is governed by federal law. These define the rules and conditions that can be applied to both individuals and corporations. They can qualify as candidates for bankruptcy once the person or the business is no longer capable to pay outstanding debts.
According to the United States Bankruptcy Court, there are ninety-four (94) federal districts that face bankruptcy cases. In most of these districts, they file bankruptcy cases through the bankruptcy courts. An Austin bankruptcy lawyer might recommend their client to do the same thing because these types of cases are invalid in state courts.
The laws governing bankruptcy are specifically designed for people who are incapable of paying their debts. It can help these individuals think of ways or solutions for their financial problems. One of the positive things they can get from these bankruptcy laws is the chance of getting a fresh start.
Real Estate Developments In Bankruptcy
Most of the time, individuals who file bankruptcy cases under Chapters 7 and 13 lose their property investments. It happens often, but not always. Typically, the outcome of real estate developments in bankruptcy cases depends on the client’s ability to protect the investment.
Real estate investments in Austin TX cannot be protected if they are filed under a bankruptcy case. It may be possible for the client to secure what is valuable to them. However, in terms of their real estate investments, that is an entirely different part of the case. Getting to keep a valuable asset gained from an investment is not an easy task for an Austin bankruptcy lawyer.
There is a chance for a bankruptcy case to be viewed on the brighter side. That is if the client or the debtor is given a chance to start over again. In some bankruptcy cases, clients are given the opportunity to rethink their choices and look for solutions for their financial crisis, which is only fair.
The Aftermath Of The Sales If Under A Bankruptcy Case
Other significant matters can also be affected while in a bankruptcy case, such as the professionals’ role and also sales in the market.
The Realtors’ Situation
Realtors are the professionals involved in bankruptcy cases. They are the ones guiding the real estate who are employed and entitled to a fiduciary for bankruptcy. Their responsibility here is to have their bankruptcy case preapproved by the judge in the bankruptcy court.
Clients who will most likely be fiduciaries can be the ones holding cases for Chapter 7 and Chapter 11. Chapter 13 bankruptcy case holders, on the other hand, are not considered fiduciaries. It is stated clearly in the Bankruptcy Code that professionals are said to be required to be “disinterested.” This term simply means that they are not bound by loyalty, which can cause problems.
Guidance From An Austin Bankruptcy Lawyer
Bankruptcy cases in Austin TX usually go smoothly. Clients are allowed to choose between state and federal exemptions in bankruptcy laws. However, even though it seems simple, facing cases with the wrong people on the client’s side can cause complications.
It is highly recommended to contact an Austin bankruptcy lawyer. These attorneys can be of great benefit to them. In addition, they can also assist and defend the client if something goes wrong with the process. Get in touch with Lincoln-Goldfinch Law today to discuss your bankruptcy matters.