Bankruptcy & Restructuring for Businesses
We do not automatically file bankruptcies. When you meet with our bankruptcy department, our free consultation will allow you to understand your concerns, the extent of your debt and your whole financial picture. By spending time to understand your situation, the source of your creditor concerns and the best way to solve them, we give you real solutions. Sometimes that will involve filing bankruptcy, other times it will instead be working with banks, vendors and customers to reorganize your finances. Our goal is to provide valuable answers for your specific situation and then help you through the entire process. By giving you solid advice, detailed plans and thorough execution, we allow you to reach your goal with the least cost and the most success.
Dworken & Bernstein represents individuals, business, creditors, and banks prior to and during bankruptcy proceedings. These bankruptcy cases are initiated by either an individual or by a business seeking protection from its creditors. In either case, our attorneys will look for a way to solve creditor issues without immediately resorting to Bankruptcy Court filings. We attempt to first understand the facts and help our clients understand their alternatives. We find that once our clients understand their legal position, they are able to make better practical decisions.
For many reasons, businesses often find themselves buried in debt. When this happens the business faces a hostile and uncertain situation as angry creditors, worried owners, doubting customers, and a damaged brand combine to make life tough. The company can try and save itself by filing for bankruptcy protection under Chapter 11, which allows the business to reorganize itself and pay off its debts over a period of time or file a Chapter 7 liquidation proceeding.
Businesses that are potentially profitable, but are struggling for one or more reasons can opt for Chapter 11 business bankruptcy filing. The business must file their financial statements and a reorganization plan. The reorganization plan is voted on and must be approved or disapproved by its creditors. If approved, then the business must discharge its debts in accordance with the existing plan while carrying on with its business. When the plan is finished, the business becomes debt-free. Also, a sole proprietor can opt for Chapter 13 bankruptcy filing, which might be more effective than a Chapter 11.
On the other hand, if a business feels that it can no longer continue because a host of factors have completely eroded its profitability and debt-repayment capacity, then it may opt for a Chapter 7 business bankruptcy filing. Chapter 7 bankruptcy is business liquidation. A bankruptcy trustee sells the business’ assets and uses the sales proceeds to pay the creditors. Once the creditors are paid off, the business ceases to exist, unless it is a sole proprietorship.
Though a business bankruptcy filing should be considered as the last resort, the process is complex and should not be undertaken without consulting an attorney. There may be other viable options to bankruptcy. Dworken & Bernstein can help you and your company understand your legal position, determinate your alternatives, and help you successfully work through the bankruptcy process.
Bankruptcy Filings Attorneys
Creditor Claims and Litigation
Dworken & Bernstein represents individuals, businesses and commercial clients, creditors, and banks to assist with creditor claims and lawsuits. Our attorneys will look for ways to resolve creditor issues outside of Bankruptcy Court. Our litigators can also assist with pending lawsuits. We attempt to first understand the facts and help our clients understand their alternatives. We find that once our clients understand their legal position, they are able to make better practical decisions.
Dworken & Bernstein can help you and your company understand your legal position, determine your alternatives, and help you successfully work through the bankruptcy process.
*The law requires that we tell you that we are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Creditor Claims & Litigation Attorneys
Dworken & Bernstein represents individuals, business, creditors, and banks prior to and during bankruptcy proceedings. Businesses unfortunately fail much more often than they succeed. These businesses are ultimately owned by people so invested in the business’ future that the debts of the business become their debts. In other cases, business debt remains the sole problem of the business.
Bankruptcy cases are initiated by either an individual or by a business seeking protection from its creditors. In either case, our attorneys will look for a way to solve creditor issues without immediately resorting to Bankruptcy Court filings.
We attempt to first understand the facts and help our clients understand their alternatives. We find that once our clients understand their legal position, they are able to make better practical decisions. With careful planning, many times a business can be saved and the business owner can work out the creditor’s concerns. Tough negotiation skills are critical at this juncture. Creativity is also key. Entities and new business associations may be formed. Often, bankruptcy filings are appropriate.
Our attorneys can help you and your company understand your legal position, determine your alternatives, and help you successfully work through the bankruptcy process.
* The law requires that we tell you that we are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Business Restructuring Attorneys
Negotiations with Banks and Creditors
When bills are not paid within the time the creditor requires, problems with those creditors will inevitably arise. First this results in frequent creditor phone calls and letters. Next, lawsuits are filed seeking “money judgment” against you and potentially foreclosure of your real estate. In these situations it is important that an attorney is retained to handle these lawsuits as soon as possible. We can help you respond to a lawsuit such as a foreclosure action and clearly explain your alternatives.
Just as importantly, hiring an attorney that can discuss your alternatives both with you and your creditors can often yield results which will help you resolve your debts with your creditors, often by paying less than you owe. On numerous occasions we have negotiated favorable settlements on behalf of our clients with their problem creditors. Sometimes a bankruptcy filing must be considered and we can help you understand and navigate that alternative if needed.
Negotiations with Banks & Creditors Attorneys
Purchasing a Business in Bankruptcy
We help our clients purchase businesses or business assets while a company is in bankruptcy. Doing so can offer considerable value at significant discounts, but the process can be complicated and challenging. The bankruptcy liquidation process is rigidly structured and contains significant impediments. Dworken & Bernstein’s attorneys can help purchasers navigate this process.
A bankruptcy sale can include everything that the company’s management and the court believe has tangible value. A Chapter 7 bankruptcy results in complete liquidation, while a Chapter 11 allows a company to reorganize. Chapter 11 allows a company to continue to conduct business during reorganization and submit a plan to pay off creditors.
Those looking to buy a business in a Chapter 11 face a complex procedure that requires sustainability and knowledge of the bankruptcy process, strategic expertise, and cunning negotiating techniques to accomplish a successful bankruptcy acquisition. Our attorneys can guide you through every step in the process of the acquisition be it asset purchase or valuation and acquisition of the entire business via bankruptcy auction or by direct sale.
Purchasing a Business in Bankruptcy Attorneys
Occasionally the creditors of a struggling business will petition a court to have a person appointed to manage the affairs of the business. That person is known as a receiver. When appointed by a Court a receiver steps into the shoes of the business owner and is allowed to take whatever actions have been approved by the Court to either manage the affairs of the business or to even wind down and liquidate the business’ assets.
Dworken & Bernstein’s attorneys are experienced at representing both court appointed receivers and those business owners fighting the appointment of a receiver before, during, and after the appointment process. Our attorneys will counsel the business owner or receiver on their various powers and rights throughout the receivership process and assist with the various legal filings and maneuverings necessary to navigate the receivership process.
Bankruptcy Creditor's Committee
When a company files a Chapter 11 bankruptcy petition requesting bankruptcy protection from its creditors and seeking to reorganize the company, the various secured and unsecured creditors of the business often form a creditor’s committee. This committee participates in the company’s bankruptcy case by reviewing the company’s books, records, sales, and other data to opine on the company’s potential continued viability, and to propose or comment on the company’s proffered plan for reorganization. The committee represents like creditors in a creditor’s committee. The company pays the various legal and other professional fees for the creditor’s committees.
Dworken & Bernstein’s attorneys are experienced at representing and providing counsel to these creditor’s committees throughout the bankruptcy process. Our attorneys help the creditor’s committees navigate the often complex and confusing Bankruptcy Code helping the creditors to maximize their recovery from the bankrupt company.
When you receive notice that one of your customers has filed for bankruptcy do not simply ignore the notice, it is possible that you may be able to obtain recovery from the bankrupt company through participation on a creditor’s committee and we can help you through that process. Contact our office immediately and we will explain the process.
Bankruptcy Creditor’s Committee Attorneys
Fraudulent Conveyance/Preference Actions
A preference action is an action brought by the Trustee or Chapter 11 debtor to recover payments made by the debtor to a creditor prior to the filing of the bankruptcy petition. Preferential debt payments have typically been made by the debtor to a creditor in the 90-day period before a debtor files bankruptcy (or within one year if the creditor was an insider) that gives the creditor more than the creditor would receive in the debtor’s bankruptcy case. These types of payments can violate the Bankruptcy Code. Typically, the trustee or debtor will sue a creditor that has received such a payment.
Dworken & Bernstein’s attorneys can help a creditor when a preference or fraudulent conveyance action has been brought against it. We will provide you with aggressive defense techniques and explain your options to help arrive at a resolution.
When faced with claims from creditors occasionally people and businesses will attempt to prevent collection on these claims by transferring their assets to another person or business entity. These types of conveyances are called fraudulent conveyances and the law provides recourse for a creditor to “chase” the assets that were fraudulently conveyed.
Dworken & Bernstein’s attorney are experienced at recognizing and uncovering these fraudulent conveyances as part of our efforts to collect on our clients claims. We can help you chase these fraudulently conveyed assets and to try to recover them to satisfy your claims.
Fraudulent Conveyance/Preference Actions Attorneys
All Bankruptcy and Restructuring Attorneys