Minnesota Bankruptcy Lawyers Represent Businesses
Skilled attorneys guide companies in the Bloomington area through bankruptcy actions
If your business is struggling financially, filing for bankruptcy may help you to eliminate or repay debt. It’s an important decision that has significant implications for your ability to remain operational, so it’s essential you’re guided by an experienced business bankruptcy firm. The Law Office of Howard Lazarus PC helps businesses in the Bloomington area and Minnesota decide whether filing for bankruptcy is the most effective way for them to manage debt.
Skilled Minnesota bankruptcy advisers offer options for businesses
The most important thing to do when your business is struggling is not to wait until it’s too late. We have found that a critical factor in helping a company through difficult financial situations is ensuring management fully understands the tools at its disposal to fix those problems at the earliest signs of trouble. As your legal counsel, we can help with:
- Loan workouts
- Business reorganization through Chapter 11 bankruptcy
- Dissolution of a business through Chapter 7 liquidation
Bankruptcy, in the right circumstances, can be used to help struggling companies not only survive, but emerge as stronger, more competitive businesses. To that end, we assist our clients in evaluating the risks, benefits and implications of not just a bankruptcy filing but various other alternatives.
Experienced advocates assist with loan workouts to satisfy creditors
For many businesses and professionals, a lack of liquidity or inability to grow due to creditor demands keeps them from successfully resolving their financial problems. As banks and other creditors begin to call loans due, clients begin to have difficulty juggling between them. As cash dries up, so does a company’s ability to keep their creditors content. Once liquidity becomes an issue, clients do not have the time or know-how to work with creditors to restructure the debt into a more manageable plan and run their businesses at the same time.
We begin by analyzing a client’s financial situation from the top down. We review the client’s financial information to determine their current financial position. We then analyze the client’s debt from all aspects, including:
- How much debt they owe
- The type of debt and its aggregate amount
- The urgency associated with particular debts
- Any inchoate (hidden) problems that the client might not realize
After conducting this analysis, we then begin negotiating with the client’s creditors to restructure their debt so that they can more effectively run their business while meeting financial obligations. To the extent that no negotiation or restructuring of the corporation or finances has been or will be successful, a Chapter 11 bankruptcy or Chapter 7 dissolution of the business may be an option.
Bankruptcy lawyers guide businesses through Chapter 11 reorganization
In some cases, bankruptcy may be the best option for businesses struggling with debt, and that typically means a Chapter 11 filing. While there are many reasons why businesses turn to Chapter 11 bankruptcy, they often choose this option because creditors have become so aggressive that no negotiation will stop them from taking damaging collection action or the client has allowed the problem to develop to a point that filing for bankruptcy is needed to prevent the loss of cash or property.
Chapter 11 is the part of the U.S. Bankruptcy Code that governs the process of reorganization under the bankruptcy laws of the United States. Businesses that file Chapter 11 bankruptcy must reorganize and restructure their debt, repaying it over time while still remaining operational. Filing triggers an automatic stay, which prevents creditors from taking collection actions such as filing lawsuits, obtaining judgments, collecting on levies and garnishments, and other actions that could cause cash to flow out of the business without the debtor’s consent. If a Chapter 11 filing presents your business with the best way to manage its debt, we’ll guide you through the process.
Proven advocates help businesses dissolve through Chapter 7 bankruptcy
If the best option for your business is to cease operations, we can help you do so in a manner that is most advantageous to you and your employees. We may determine that a Chapter 7 bankruptcy to liquidate the business’s assets is appropriate. A trustee appointed by the bankruptcy court will take possession of your business’s assets and distribute them among creditors, resulting in the dissolution of your business through a discharge of its debts.
Contact our Minnesota business bankruptcy attorneys
The Law Office of Howard Lazarus PC provides businesses throughout Minnesota with skilled representation in bankruptcy matters and other debt relief cases. Call us at 651-434-7590 or contact us online to schedule a consultation at our Bloomington office.