Each client’s financial dilemma requires its own solution. Often times, debtors and creditors can resolve their economic disputes outside of a courtroom – Financial Restructuring may be the answer.
Creditors typically desire repayment rather than litigation or foreclosure. Debtors wish to avoid the negative credit issues and stigma of a bankruptcy. In these situations, we provide representation and negotiation for the non-bankruptcy solution in distressed situations.
In some cases, individuals and business owners may also require advice and counseling on strategies and alternatives for protecting their personal assets. Creditors may seek advice for scenarios and opportunities to obtain favorable payment terms outside of bankruptcy, including the orderly liquidation of a financially distressed business to maximize the recovery and mitigate their losses.
Representing a Colorado-based home builder in a complex case, we were able to achieve desirable results for both the debtor and creditors through negotiation. We liquidated many properties in an orderly fashion to maintain value; we surrendered several assets to the banks when the properties could not be sold; we worked with unsecured creditors in order to get them some kind of payment; and, avoided the drastic consequences of a bankruptcy.
By working together, both the debtor and the creditors obtained favorable results, cut their losses and were able to move beyond the financial hardships. Early on in the process, we contacted the creditors, advised them of the problems the debtor was facing, and presented a plan to get the creditors paid. Not every creditor was paid in full, but by having a legal strategy in place, we were able to resolve the uncertainty of the client’s financial future.