Legal Solutions at Times of Bankruptcy problems.

This could include doctors, lawyers, or other high
income professionals. The objective is to study and analyze whether the business or individual is maximizing the amount of income available and is expensing items on its budget wisely, according to the relevant market or profession.

Example 1: The business for whatever reason finds itself making less income than before, and therefore, struggles to timely pay debts each month as required by the contractual agreements. A chapter 11 bankruptcy (i.e. “financial reorganization) would allow it to restructure its monthly payments, eliminate a portion of the debt, and lower payments and interest rates on other debts, all under the guidance of its bankruptcy professional, who obtains the Court’s approval of a plan of reorganization.

Example 2:  The business operates from a central commercial location upon which a mortgage (lien) exists, and the note has matured, or the owner has fallen behind on the payments, resulting in the bank proceeding to foreclose on the property.  The owner tries to convince the bank to work with him in this matter.  However, the bank, due to its policies, chooses not to do so.  If the owner loses the property, he will have to spend an enormous amount of money to relocate the business, its employees and all of its assets.  The owner feels he has no options.  However, if the owner files a chapter 11 business reorganization, his lawyer will have the federal bankruptcy court issue a mandatory injunction stopping the foreclosure of the commercial building, and allowing the lawyer to propose a restructure of the mortgage loan that the Court can approve that will leave the owner in business at the same location, and not disrupt it by having to move out of the commercial space.  

Example 3: A professional couple is overwhelmed with debt, due to their normal monthly debts they owe, but also due to an investment in a business that went bad, causing them to owe

a large amount of money, because they signed to personally guarantee the investment debt.  The combination of debts crushes the family budget.  Although, the couple have excellent income, they fall short of being able to fund their normal family expenses for their lifestyle, plus the unexpected burden of debt caused by the failed investment.  A chapter 11 reorganization would help this professional couple with restructuring their dead load to coincide with the amount of net income they have, thereby eliminating much of the worry about being sued and losing their property.  

Chapter 11 for any reason whatsoever, allows the individuals or business to retain necessary assets, yet eliminate overburdening debt, and more importantly, it invokes a federal injunction called an “automatic stay” that stops lawsuits that have begun, and prohibits lawsuits that have not yet begun.  Congress invoked this type bankruptcy to enable businesses to continue being a part of our economic society, and to continue employing individuals, who have

the responsibility of making a living to provide for their families.  Without it, those employees would be forced to draw unemployment compensation and seek new employment, potentially

having to move with their family to a different city, or neighborhood with friends, family, co-workers, and neighbors left behind.  Moreover, whatever advancement each worker has made in the current job, will have been lost.  

For business debt problems, call (864) 901-0142.