How to Start a Bankruptcy Law Firm
When people are unable to meet their financial obligations, many usually resort to filing bankruptcy in order to free themselves from their debt burdens. Bankruptcy law firms help individuals and businesses resolve their financial problems by guiding them through the bankruptcy process. Follow the proper steps in starting your bankruptcy law firm.
- Educate yourself on bankruptcy laws. Bankruptcy laws and procedures can be complicated, so you need to educate yourself by attending bankruptcy seminars and Continuing Legal Education (CLE) courses covering bankruptcy topics. Alternatively, you can purchase bankruptcy practice guides from online legal databases like Lexis Nexis or Westlaw.
- Register your law firm and obtain all necessary permits and licenses. Check with your city or county for licensing requirements. You may be required to obtain a tax permit. Also inquire about obtaining a federal employment identification number from the Internal Revenue Service (IRS).
- Buy malpractice insurance for your law firm. Many states require attorneys to have legal malpractice insurance. Legal malpractice insurance covers legal proceedings, so it is essential that you purchase malpractice insurance to cover your firm. Inform your insurance provider that you will be starting a bankruptcy law firm.
- Get an office space for your law firm. Find an office space where you can meet with your clients. Get a location that will be visible and easily accessible to potential clients.
- Purchase the necessary equipment and supplies for your firm. You will need items such as a computer, bankruptcy filing software, copier, telephone, printer, fax machine, pens, paper, envelopes, file folders, staples, office furniture and filing cabinets.
- Hire the support staff for your law firm. When you are first starting out, you may need to hire only one paralegal. You can also hire a legal assistant, preferably someone who is experienced in bankruptcy law.
- Look for clients. You can advertise your bankruptcy law firm in the Yellow Pages and newspapers, set up a website, distribute fliers to community centers and libraries. You can also go to sheriff sale auctions, which are generally publicized a few months in advance. Contact those homeowners by mail. Hold bankruptcy seminars for those who might be considering it. Attend local business expos to promote your law firm.