It is important for business owners to understand that the attorney that files bankruptcy for the company is not the owners’ personal attorney. While the bankruptcy attorney may keep the owners’ goals for the business in mind while preparing a Chapter 11 bankruptcy and a Chapter 11 plan, sometimes there are conflicts of interest that prevent the company’s bankruptcy attorney from pursuing or declining certain courses of action. Business owners need to select their own counsel to help navigate the process behind the scenes – the owner’s attorney may not need to be an active participant in the company’s bankruptcy but business owners should have an attorney independent of the company’s bankruptcy attorney to help each owner at critical steps in the bankruptcy process. It is important that your company’s bankruptcy attorney highlights this important separation of the business interests and owner’s interests for the company’s owners. The company’s attorney may be able to assist in making referrals for personal bankruptcy counsel based on his or her experience with colleagues who would be the right fit.
DISCLAIMER: The information contained above is general in nature and provided as reference material only. This information is not specific legal advice about the application of the law to a particular fact scenario, nor does it replace (or purport to replace) any requirement to obtain specific legal advice. This information is not intended to and does not create an attorney client relationship. If you require legal advice, that advice should always be obtained from a qualified legal practitioner in your jurisdiction.