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