It’s no surprise that many companies encounter serious debt issues. Companies take daily risks, markets are ever-changing, and sometimes unexpected problems arise.
CEOs and business owners may feel like the room is closing in around them:
Turnaround experts and attorneys experienced in complex business problems provide an unemotional, logical perspective to identify a path through the chaos. A variety of legal tools are available to hold off creditors while the company gets back on track.
Business turnarounds turnaround experts helping the business get back on its feet, salvaging the value in the company, and making tough decisions to return health to the business. This often involves meeting with creditors to explain a turnaround strategy and repayment plan.
The purpose of bankruptcy court is not to punish the debtor, but rather to release the debtor of liability.
Federal court has jurisdiction over bankruptcy cases, and debtors rarely appear in court. However, debtors are required, under rule 341, to attend a meeting between debtors and creditors in order to evaluate the debtor’s assets. This is often referred to as a 341 meeting.
Companies filing bankruptcy generally use Chapter 11 to seek time to reorganize.
For business owners (as individuals), there are three basic types of Bankruptcy as defined by the chapters of the Bankruptcy code. Chapter 7 Bankruptcy deals with the liquidation of one’s assets in order to distribute payment to creditors. Chapter 11 concerns businesses that must reorganize in order to continue operating while paying off its creditors. Chapter 13 Bankruptcy is where an individual must adjust their debts in order to keep their assets while still paying off creditors over time. These chapters also provide many different methods for paying off your debts so you can move one with your life.
Here is a list of bankruptcy services and issues that can be resolved during the bankruptcy process:
An experienced bankruptcy attorney can provide clients with representation in the following areas:
Chapter 11 of the Bankruptcy Code allows for reorganization of a business. In this case the debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in a business or individuals can also seek relief under this chapter.
Chapter 7 of the Bankruptcy code allows the debtor obtain relief from their debt through a liquidation of some of their assets. A trustee is designated to gather and sell the debtor’s nonexempt assets in order to pay holders of the claims (the creditor).
Foreclosures are very intimidating and can have a significant effect on your life. For this reason, it is important to understand all of your options when facing a possible foreclosure in order to make sure that you reach the best outcome.
When going through a state court or bankruptcy proceeding, determining how to hold on to as much of your money as possible is important in order to stay afloat after. For this reason it is important to understand the wage exemption so that a creditor will not garnish all or too much of your wages.
Generally, an annuity is exempt from creditors (including the bankruptcy trustee) when filing for bankruptcy in Minnesota. The laws involving protection of funds in an annuity, or the steam of income from an annuity, varies from state to state.
Chapter 13 of the Bankruptcy Code provides for the adjustment of debts of an individual with regular income. It allows the debtor to keep property and pay debts over time, usually 3 to 5 years.
There are many ways to relieve the overwhelming debt you may be facing. It is important to understand your options in order to choose the route that is best for you.
In a judgment lien, through a court order a creditor is given the right to obtain the debtor’s property if they fail to satisfy their contractual obligation to pay back their debt. An example is if you are sued in court and the plaintiff is granted damages but your insurance doesn’t full cover the judgment, the plaintiff may be granted a judicial lien against your property to insure payment of the claim.