The law of the land primarily exist to give protection and to enforce rights to the members of a society. With bankruptcy laws, it does play an important role in allowing people to take risk and hence promote economic activity in the country. The San Antonio bankruptcy lawyer comes handy when a person that has taken too risky a venture than can be handled and needs protection from going bust.
The bankruptcy laws protect a person from penury and thus afford a minimum standard of living when the worst happens to his business venture. It does permit the risk takers the necessary protection at the same time protects the lenders and such persons from losing out completely while lending or extending lines of credit to a business venture.
The ways in which a San Antonio bankruptcy lawyer protects the client
The bankruptcy laws are mostly to be used as a last resort to help people come out of a particularly bad financial situation. This is usually necessary when business plans go wrong or that the business calculations do not work out as anticipated. Thus it does give a bare minimum protection to the risk taker or the promoter of a business from loans that could not be repaid due to the situation.
With most bankruptcy laws, it is meant to be used in the rarest of cases that would mean a complete wipe out of the business man. The need to encourage risk takers to function without hindrance is met by this simple application of legislation that has seen many a business person be saved from absolute penury. Thus economic activity that is so crucial to progress of society as a whole and to bring about better conditions to risk takers is never hindered.
Thus a bankruptcy lawyer is consulted and services taken of when a particular business goes horribly wrong and the promoter of the business needs the protection given by law in claiming bankruptcy. They are no doubt, part and parcel of any thriving business community.
The importance of risk takers in society
There is always a need to have people that would take risks. This is particularly made possible by the returns that a risk taker is rewarded with when something goes according to plan. It is often noticed that the higher the risk involved with a venture the better the return to the business venture.
This factor has brought about a set of risk takers that seek to get better return on capital deployed and it gets to such extent that the risk can be inordinately high. If the deterrents to risk taking are high that few people would take any ventures is not exactly a welcome situation in any society. Thus a set of procedures that protects the risk taker from absolute poverty is devised to render risk as acceptable part of any business community. This is what typically the bankruptcy laws seek to address in their application.