If your business is facing bankruptcy, the last thing you want to do is spend more money. After all, court is expensive, and several hearings may be required before the bankruptcy case is closed. In addition, you will have to hire an attorney, which is another expense. However, you can save a significant amount of money by using mediation for business bankruptcy in NewportBeach California.With mediation, you will be able to finalize your business bankruptcy in Newport Beach California in a more efficient, less expensive manner.
Mediation is an out of court process that encourages the parties to take control over their case and create a settlement. In bankruptcy, the debtor may agree to certain payment plans with various creditors, for example; the mediator serves as a neutral and is available to assist with negotiations; however, the mediator does not make any decisions on behalf of the parties.
How does mediation save money? Mediation may be conducted as soon as the parties agree, well before several hearings have been heard. If the case settles, this saves a significant amount of money in court costs.
At the end of a bankruptcy case, a party may owe a significant amount of legal fees and court costs. In contrast, a mediator may only charge a couple thousand dollars to mediate the case. Many mediators offer sliding scale fee schedules for those suffering from financial hardship. If the case fully settles, the debtor will have saved a small fortune in legal fees.