Before filing for bankruptcy, business owners should explore every available out-of-court option for dealing with the debt. Going to bankruptcy court can be costly, and it is important to get comprehensive legal advice before taking that step.
If you are a bankruptcy trustee, then you have a fiduciary duty to creditors and debtors. That being the case, a mistake at any point in the process could expose you and the bankruptcy estate to liability. Because bankruptcy law and procedure are very complex, it is important for bankruptcy trustees to have legal guidance to ensure that all duties and obligations are met.