Bankruptcy Lawyers - Arizona, Nevada, California

Tiffany & Bosco’s team of bankruptcy attorneys have the expertise to represent creditors or debtors in bankruptcy proceedings. We work with institutional lenders, secured and unsecured creditors, official creditors’ committees, trustees, debtors-in-possession, and other purchasers of assets.

What is Bankruptcy?

Bankruptcy is the process of appealing to the court system for relief of debts. In the United States, the Constitution (Article I, Section 8, Clause 4) guarantees the right of citizens and business owners to file for relief by bankruptcy. This right includes two forms of bankruptcy for businesses:

  • Chapter 7
  • Chapter 11

What is Chapter 7 Bankruptcy?

Sometimes called total bankruptcy, Chapter 7 largely does just that – it totally cleans debt from an entity such as an LLC, LLP, S-corp, corporation, or NPO. However, chapter seven bankruptcies are generally not advised for businesses; there is one good exception.

Because Chapter 7 bankruptcy means total dissolution of the company debts, assets will be sold to cover these under an agreement involving the court and debtors. In most cases, this means the complete liquidation of the business and it closes.

Thus, a company would choose Chapter 7 if it intends to close shop for good. Alternately, most businesses seeking bankruptcy protection choose Chapter 11.

What is Chapter 11 Bankruptcy?

Chapter 11 bankruptcy is a restructuring plan available only to businesses. Unlike Chapter 7, this form of bankruptcy is not complete. The business will submit a plan to the court outlining a debtor repayment plan. Your Tiffany & Bosco legal team will handle this on your behalf.

Why Would a Corporation Choose Chapter 11?

Corporations and other businesses choose Chapter 11 bankruptcy because it allows them to continue operating their companies. No one wants to see the company they have put so much effort into close; Chapter 11 allows the business to survive filing bankruptcy.

Of course, for corporations, there are myriad issues to consider and plan for including employee pension plans, stocks, bonds, insurance policies, and more. In addition, it is in the interest of the company to have a trusted party be named trustee, which your attorney will assist you with.

What Happens to Stock in a Company Filing Bankruptcy?

When a company files Chapter 7, the stock will generally become worthless. The court will sell assets to pay interested parties according to a legally defined process. Stockholders are the last to get paid and as such are often left with nothing.

If the company files Chapter 11, in most cases the stocks may continue to be exchanged. SEC rules are very strict about the conditions under which stocks may continue to be sold. In some cases, the company will have to issue new stock under the bankruptcy settlement. If that happens, the old stock becomes worthless (although often the company will trade new for old at a reduced value).

Why Choose Tiffany and Bosco for Your Corporate Bankruptcy Needs?

Bankruptcy involves a variety of complex financial transactions that require the restructuring of entities and/or debt. At Tiffany & Bosco, decades practicing law on behalf of businesses has allowed us to hone our skills to cut through anything in our path. We help manage every aspect of your corporate bankruptcy so that you can focus on rebuilding once the courts clear the path. Our bankruptcy practice includes:

  • Workouts
  • Debt modifications
  • Defaults
  • Refinancing
  • Insolvencies (both in and out of formal bankruptcy proceedings)
  • And all stages of related financial litigation

Tiffany & Bosco attorneys have represented creditors and debtors with respect to all aspects of complex commercial bankruptcy proceedings. These include:

  • Confirmation of Chapter 11 plans
  • Bad faith dismissals
  • Claim allowance proceedings
  • Non-dischargeability actions
  • And other areas of bankruptcy administration and litigation in Arizona, California, Delaware, New Jersey, and Nevada

Learn more about our bankruptcy lawyers below. Select an image and click through to read more about each of our areas of expertise. You may email us directly or phone us at 602-255-6000.

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