Bankruptcy is a concept thousands of years old. Its primary purpose today in the United States is to relieve a debtor in financial distress while also protecting creditor interests. The filing of a bankruptcy can present a necessary solution to keep a business healthy and viable or a present a means to eliminate certain debts through liquidation. Circumstances arise in the course of the life of a person or a business that are beyond anyone’s control or just become overwhelming to a degree that a person or business cannot continue to function in its present state. Bankruptcies provide an organized and dignified process so that things can return to a balance. Creditors, debtors, and other institutions rely on an efficient, transparent, and consistent process to avoid chaos that would result otherwise. We strive to navigate our clients through the bankruptcy process with integrity and dignity.
There are many factors to take into consideration before filing for bankruptcy and in fact a bankruptcy is oftentimes unnecessary with the right approach. There are so many considerations to take into account before filing bankruptcy. Timing is an especially important consideration before filing bankruptcy. There are various periods of time a court may “look back” on a debtor’s bankruptcy estate. It is STRONGLY advised for any individual or business to consult with counsel BEFORE transferring or selling off any assets in anticipation of bankruptcy and to be very upfront with counsel to avoid severe consequences. Some other considerations which need to be taken into account before filing bankruptcy involve wage earnings, tax filings, tax arrears, and other debts in general. Bankruptcies range from simple filings where things may be wrapped up and discharged within a few months time to very complicated debt restructuring and creditor agreements that will last many years. The filing of the bankruptcy is only a beginning and planning needs to be made with the long term goal in mind before any filing is made. Many Bankruptcy judges want to know what the petitioner’s end goal of the bankruptcy is going to achieve and a well thought out plan is crucial.
Creditors rights are also an important part of the process. Creditors with good faith lending practices and fair terms deserve fair treatment in the process as well. Creditors should be advised that it is absolutely crucial for them to operate within the terms of the law to avoid severe penalties and a tarnished reputation. A realistic outlook with a dignified approach in a bankruptcy proceedings will provide much more successful results than acting in bad faith or outside the proper confines of the law. We can assist with creditor claims to ensure their proper place in priority and representation during the administration of the bankruptcy estate. .
Through an unprecedented time in our nation’s history as a result of the pandemic the marketplace and joblessness claims have been staggering. We understand the scramble that individuals, businesses and creditors are going through and we are here to help.