Let Our Miami Bankruptcy Litigation Attorney Help Your Business During Bankruptcy Proceedings
Businesses that are struggling with debt or insolvency can often find relief and effective solutions under the U.S. Bankruptcy Code. Whether reorganizing debt under Chapter 11 or seeking a graceful exit under Chapter 7, bankruptcy offers powerful protections to business owners that lets them deal with existing debt and move on without the fear of constant harassment, collections or lawsuits from creditors. At the same time, the nation’s business bankruptcy laws protect creditors too. Creditors who take an active part in the bankruptcy process can protect their financial interests and ensure that they are treated fairly in any plan approved by the court. Our experienced bankruptcy litigation lawyers can help make it so.
The business bankruptcy lawyers at Edelboim Lieberman have a long record of success helping business creditors and debtors in Miami, Fort Lauderdale and across South Florida. With our law firm’s experience in business bankruptcy, our attorneys can accurately assess your financial affairs and legal situation and help you find the option that makes the most sense for you. Whether you need to know if filing for bankruptcy is right for you or you need legal representation as a creditor in the bankruptcy process, our South Florida bankruptcy litigation lawyers can help.
Comprehensive Business Bankruptcy Services in Miami and South Florida
Our bankruptcy law firm provides a range of legal services to debtors and creditors alike. Some of these services include:
Chapter 7 Bankruptcy
Wind down operations in an orderly fashion by liquidating assets and using the proceeds to pay creditors in priority order. With your creditors on notice about the bankruptcy, you can complete the bankruptcy without further liability for any remaining debts. Exit Chapter 7 ready to try again with a new enterprise or find another occupation that interests you and suits you.
In a Chapter 7 business bankruptcy, the bankruptcy trustee sells all of the company’s assets and then distributes the proceeds to the company’s creditors in accordance with the priority rules established under the Bankruptcy Code. While individuals who file under Chapter 7 can claim certain exemptions to retain some of their assets, this option is not available to corporations, partnerships and limited liability companies (LLCs).
Although filing for a business bankruptcy under Chapter 7 effectively shuts down the company, it does not necessarily erase all of the company’s debts. If the proceeds from the sale of the company’s assets are insufficient to satisfy all debts, then creditors may still be able to pursue claims against the company’s former owners—whether based on personal guarantees or other grounds. As a result, it is particularly important that small business owners hire an experienced Miami bankruptcy litigation attorney to help them choose the most appropriate type of bankruptcy filing to pursue and to represent them throughout the bankruptcy process.
We represent businesses and business owners in Chapter 7 bankruptcy proceedings. We also represent businesses and business owners in litigation arising out of Chapter 7 bankruptcy filings. Our attorneys can help you choose between filing for bankruptcy under Chapter 7 and the other options you may have available, and then we can guide you through the process of winding up your company and moving on to your next business venture.
Chapter 11 Bankruptcy
Reorganize your debt, finances and business structure in a way that makes more sense and puts you on a path toward profitability. With court supervision, you remain in charge and in possession of your company as you make decisions that respect your creditors’ rights but also enable you to turn your business around. Exit Chapter 11 stronger than before and ready to take on the world.
Filing for bankruptcy under Chapter 11 is very different from filing for bankruptcy under Chapter 7. As a “reorganization” proceeding, the goal of filing under Chapter 11 is to keep your business operational. In fact, filing under Chapter 11 offers several benefits that can help companies sustain their operations as they work to reorganize their debts and stabilize their finances for the future. Some examples of these benefits include:
- Automatic stay of all creditor actions – When a business files for bankruptcy under Chapter 11, this affects an automatic stay of all creditor claims. This includes pending repossessions, foreclosures, lawsuits and other debt-collection efforts.
- Emergency relief to maintain operations – After filing for bankruptcy under Chapter 11, a business can petition the court for emergency relief to maintain its operations. This allows the business to continue paying its employees and to meet certain contractual obligations despite its outstanding commercial debts.
- Access to debtor-in-possession financing – Companies that file for Chapter 11 bankruptcy may be able to access debtor-in-possession financing. New creditors that extend financing to debtors in possession enjoy priority over many pre-bankruptcy debts.
- Rejection of leases and other executory contracts – Chapter 11 debtors have the option to reject leases and other executory contracts as part of the bankruptcy process. When a Chapter 11 debtor rejects an executory contract, the other party becomes an unsecured creditor for any balance owed.
- Sale of encumbered business assets – Filing for bankruptcy under Chapter 11 affords the opportunity to sell many business assets free and clear of encumbrances, liens and other third-party interests. If distressed assets are non-essential, disposing of them through the bankruptcy process can provide access to much-needed capital to help sustain the company’s operations.
Due to the nature of Chapter 11 bankruptcy proceedings, these proceedings often lead to litigation. A bankruptcy litigation attorney at Edelboim Lieberman can guide your business every step of the way and provide representation for any disputes that may arise.
Creditor Representation
Creditors have rights too, even in bankruptcy. Our experienced business bankruptcy lawyers can show you how to protect your interests in a Chapter 7 or Chapter 11 proceeding filed by a company that is indebted to you. Our attorneys will represent you and guide you through all aspects of any bankruptcy proceeding from the commencement of the case, to the 341 meeting of creditors, to the confirmation hearing and even post-confirmation. We will assist you in taking an active role in the bankruptcy proceeding and assist you in protecting your rights and interests.
Adversary Proceedings
Our experienced business litigators are adept at representing debtors, creditors and interested parties in bankruptcy litigation when a contested issue arises over the dischargeability of a single debt or an overall bankruptcy discharge, as well as disputes surrounding alleged fraudulent transfers, preferential transfers, and other matters. Adversary proceedings are not a feature of every bankruptcy, which makes it all the more important to retain skilled and experienced bankruptcy litigators like Edelboim Lieberman when they do.
Assignment for the Benefit of Creditors
As an alternative to Chapter 7 bankruptcy, an ABC can be an effective tool that solves the business owner’s financial troubles by working with experienced professionals to liquidate or transfer assets and wind up operations under court supervision. Assignments are often less litigious than bankruptcy and often produce outcomes that are beneficial to business owners.
Q&A with a Miami Bankruptcy Litigation Attorney
What are the differences between a Chapter 7 bankruptcy and a Chapter 11 bankruptcy?
There are several major differences between bankruptcy proceedings under Chapter 7 and Chapter 11. The biggest difference is the nature of the bankruptcy proceeding itself. While a Chapter 7 bankruptcy involves liquidating a company’s assets and closing the business, a Chapter 11 bankruptcy involves reorganizing the company’s debts so that it can continue operating. From eligibility criteria to benefits and drawbacks, there are several other factors that differentiate Chapter 7 and Chapter 11 bankruptcy proceedings as well. Our attorneys can help you evaluate your options so that you can choose the best path forward for your business.
What is an assignment for the benefit of creditors?
An assignment for the benefit of creditors (ABC) is a voluntary form of liquidation that takes place outside of the bankruptcy courts. With an ABC, a distressed company transfers its assets to a trust which then liquidates those assets and distributes them to the company’s creditors.
Should my company file for bankruptcy or pursue an assignment for the benefit of creditors?
Whether your company should file for bankruptcy or pursue an assignment for the benefit of creditors depends on its current financial circumstances, its corporate structure and various other factors. Since an ABC is a voluntary process, it will also be necessary to determine whether your company’s creditors are open to pursuing this route. With that said, pursuing an ABC will often be in the best interests of all parties involved; and, if an ABC makes sense for your business, our attorneys can help you pursue this option.
Should my company file for bankruptcy under Chapter 7 or Chapter 11?
Deciding between filing for bankruptcy under Chapter 7 and filing under Chapter 11 also requires careful consideration of several company-specific factors. Here, however, your goals as the company’s owner are relevant as well. Are you ready to wind up the company and pursue a new venture? Or, do you want to keep the business afloat? Your answers to these questions (among others) will be critical for informing your decision.
What should I do if my company has a contract with a business that has filed for bankruptcy?
If your company has a contract with a business that has filed for bankruptcy, you should engage legal counsel promptly. A bankruptcy litigation attorney at Edelboim Lieberman can explain your company’s legal rights and take appropriate action to protect your company’s financial interests to the fullest extent possible. While filing for bankruptcy affords protections to debtors, creditors still have clear rights as well, and our attorneys have significant experience helping creditors enforce their rights in Chapter 7 and Chapter 11 bankruptcy proceedings.
Talk to a Miami Bankruptcy Litigation Attorney About Your Business’s Needs
When it comes to bankruptcy proceedings, even the smallest details could influence the entire outcome of the case. The business bankruptcy attorneys at Edelboim Lieberman pay attention to every detail and the big picture as well, ready to represent your interests and help you reach your goals in any business bankruptcy matter. For help with business bankruptcy in South Florida, contact a bankruptcy litigation lawyers at our offices in Miami or Fort Lauderdale by calling 305-768-9909 for a free consultation.
