Dworken & Bernstein’s attorneys represent businesses in a wide variety of their debtor and creditor issues. We understand that some of the most important aspects of doing business involve those that you owe money to and those that owe you money. However, these issues are rarely simple.
Business as the Debtor: Institutional lenders such as banks, savings and loan companies, community banks, credit unions, and other business lenders have become very sophisticated in the loan agreements and other documents that they insist their borrowers sign to borrow money. It is common for these lenders to build into such agreements various ways that they can hold the borrower in default even if they are current with their payments. These provisions frequently take the form of debt-to-income ratios, internal and external cross default provisions, material adverse change provisions, and negative changes in the financial condition of either the borrower or the collateral for the loan (if any). These agreements also usually provide for personal guarantees and allow a right of set off for the lender and, in some jurisdictions, allow the lender to call a default and obtain a judgment against the borrower very quickly, sometimes with no notice to the borrower until after the fact. Dworken & Bernstein’s attorneys are well versed in the negotiation of these borrowing documents and can assist in negotiating the agreement and explaining the risks and ramifications of these provisions to the borrower. When things go badly, we also assist debtor companies in negotiating loan restructurings, negotiated workouts, assignments for the benefit of creditors, and alternative insolvency proceedings in lieu of formal bankruptcies.
Business as the Creditor. We represent businesses in all facets of their collection of monies owned from their clients or customers. This begins with the contracts, terms and conditions of sale, and agreements that a business uses with its customers. These take a wide variety of forms as each business deals with its customers and clients differently, but these documents position the business for success in collecting on those customers that it extends credit to or allows for delayed payment terms. We can assist in helping a business secure its debt from creditors or, when necessary, litigate for collection, pursue cases involving fraudulent conveyances, preferences, relief from automatic bankruptcy stays, and/or the enforcement of creditors’ rights under the Uniform Commercial Code (UCC). When a businesses’ debtor is in bankruptcy, we also represent the business as a secured or unsecured creditors in their debtor’s Chapter 11 reorganization and Chapter 7 liquidation proceedings.
Our attorneys provide both legal and practical advice in dealing with both business debtors and business creditors helping them navigate the law and practical concerns involving their business debt to their creditors and collection of those amounts owed from their debtors. We help business owners find cost effective solutions to these issues to achieve the owner’s goals.