Iurillo Law Group, P.A. represents businesses and individuals in Chapter 7, 13 and 11 bankruptcy cases and bankruptcy alternatives such as Assignments for the Benefit of Creditors and workouts. The financial challenges faced by our clients range from the depths of a financial storm to the temporary loss of the wind from their sails. When you meet with one of our attorneys, they will review and analyze the facts of your situation and advise you about your financial alternatives, including whether a bankruptcy filing or insolvency alternative is recommended.
Iurillo Law Group, P.A. handles all aspects of debtor representation, including but not limited to:
- Chapter 7, 13 and 11 bankruptcy filings
- Assignments for the Benefit of Creditors
- Out-of-court workouts
- Dissolution of the corporation or business, including the liquidation of assets
Chapters 7, 13 and 11 bankruptcy cases and insolvency alternatives are described generally as follows:
Chapter 7 – Businesses
When a business is unable to or does not desire to reorganize and continue to operate, a Chapter 7 business bankruptcy case is a method by which a business may dissolve under the oversight of a bankruptcy trustee. Generally speaking, the owners of the business turn over all assets of the business that are not encumbered by liens to the bankruptcy trustee; the bankruptcy trustee then liquidates those assets and distributes the proceeds to the business’ creditors.
A Chapter 11 bankruptcy case is available for businesses and certain individuals with financial challenges beyond what they can attain in a Chapter 13 case. During a Chapter 11 reorganization, a business continues to operate or an individual continues to manage their affairs under the supervision of the bankruptcy court. The business may be a corporation, partnership or sole proprietorship. A Chapter 11 bankruptcy case provides a myriad of opportunities for a debtor to restructure its debts and benefits that are not available outside of bankruptcy such as rejecting executory contracts, valuation of secured debt and the automatic stay to creditors’ actions to collect debts. However, timing is everything. The longer a struggling business or individual waits, the greater the risk that certain opportunities or benefits of a Chapter 11 reorganization may be lost. The goal of a Chapter 11 bankruptcy case is to have the a plan of reorganization, which is essentially a contract with creditors to repay creditors on more favorable terms than pre-bankruptcy, confirmed by the bankruptcy court. In the alternative, a Chapter 11 bankruptcy case may also be used to liquidate the assets of a debtor.