Get A Financial Fresh Start Through Bankruptcy Or Debt Reorganization
The bankruptcy practice at YK Law has served multiple small businesses, creditors and individual debtors in Chapters 7, 13 and 11. Our experience also includes issues involving complex bankruptcy litigation. Our attorneys have represented clients in adversarial proceedings and creditors’ proceedings in the southern and eastern Districts of New York.
Bankruptcy And Your Small Business
We know you have worked long and hard to make your business succeed. Even with the best attempts, small businesses face many challenges they simply have no control over. If your small business needs to file for bankruptcy, we have a tailored approach to help you move beyond the financial stigma into the next phase of your life and business.
But at YK Law, we don’t jump right into bankruptcy proceedings with clients facing financial distress. If you seek our advice, our initial approach will be to explore options for your business through debt settlements and negotiations with creditors in an effort to avoid bankruptcy. We may help you accomplish your debt relief goals through other methods such as the following:
- Direct contact with creditors
- Litigation to combat unfair billing practices
- Funding and financing assistance to enable your business to consolidate debt
If these attempts are unsuccessful, we will analyze your debtor and business assets and liabilities. If appropriate, we will match your business’s financial situation with the appropriate chapter under the Bankruptcy code:
- A Subchapter V bankruptcy (small business streamlined reorganization)
- A full Chapter 11 reorganization
- A Chapter 7 liquidation
An exploratory initial consultation and further evaluation will clarify which bankruptcy type is right for your business.
Handling Creditors’ Claims
Our team can assist with securing the interests of creditors seeking to collect from a debtor who is in bankruptcy. As a creditor, your legal path forward may encompass one or more of the following:
- Analyzing the claim
- Assessing its priority
- Creditor committees
- Creditor motions and bankruptcy litigation
- Relief from the automatic stay
- Appointments of trustees
- Adversary proceedings
We approach every creditor’s case with an open mind and let clients help us arrive at the most effective pathways to relief.
Representing Business Debtors In Bankruptcy
As a debtor, when you file for bankruptcy, you have the right to an automatic stay of all creditor collection efforts. In addition, you may be able to cram down certain eligible debts, liquidate and/or reorganize debt and either close down your business or revitalize it for a fresh start.
How Chapters V, 7, 13 and 11 Are Most Often Used
Subchapter V bankruptcies are also known as ‘mini Chapter 11’ bankruptcies for debtors who meet certain criteria and debt thresholds. This form of debt relief offers small business debtors a streamlined and low-cost alternative to a Chapter 11 reorganization.
Chapter 7 filings are designed for the debtor with assets to liquidate for the benefit of creditors and obtain a discharge of debt that cannot be satisfied by funds raised through such liquidation. For individuals with debt but no assets or income, Chapter 7 can offer a discharge of debts and a fresh start. Eligible businesses, business owners and other individuals may go this route.
Chapter 13 filings are designed for the individual debtor with regular income that needs to reorganize debt, expunge certain liens and discharge any personal liability. Chapter 13 filings usually involve the debtor entering a 5-year plan for the benefit of creditors. While you are in bankruptcy we can assist you with home retention, litigation, debt negotiations, loan modification and other debt solutions.
Chapter 11 bankruptcies are business reorganizations that involve myriad business issues to assist the debtor to maintain ownership of the business and enable it to continue operations.
We also represent some individuals in Chapter 11 cases where the individual has debt in excess of $1 million.
Preparing for Adversarial Proceedings
Our team is experienced in representing debtors and creditors in adversary proceedings in bankruptcy court and can assist with all aspects of bankruptcy court litigation.
Complex Bankruptcy Litigation
The bankruptcy lawyers at YK Law have assisted many business and individual clients with extremely complex bankruptcy litigation as described below:
Case Study No. 1
- Type of client: Small business debtor In possession of a multiunit commercial building in Brooklyn
- Client’s issue: To retain ownership or possession and to negotiate with its secured, priority and unsecured creditors and save the property from public auction.
- Our approach: After we conducted a debt priority and waterfall analysis, it was determined that the debtor could not effectively pay its creditors on its own. We arranged for DIP financing and cash infusion from a third-party investor and raised sufficient capital to short-pay creditors’ claims, administration fees and expenses, commissions and more to the satisfaction of the U.S. Bankruptcy Judge. As part of the deal, we negotiated a long-term discounted lease for the client so that he could continue operating his business from the property.
- Result: We engaged in litigation and filed multiple complex motions to avoid the secured creditor’s self-liquidating plan and auction and were able to have our novel investor bail out with a financing plan confirmed.
Case Study No. 2
- Type of client: Small business/Amazon retail store
- Client’s issue: The client filed a Chapter 7 liquidation with prior counsel but was facing an adversary proceeding and litigation claiming fraud.
- Our approach: Represented client in Section 2004 depositions and defended the adversary proceeding, analyzed assets, fraud claim and petition filing and created a strategy to defend the client and take its bankruptcy case to conclusion.
- Result: Assisted client in successfully negotiating with the creditor plaintiff, aggressively represented the client in the bankruptcy litigation, negotiated and resolved creditors claim to allow the debtor to obtain a discharge.
Explore Options And Receive Customized Counsel
Rest assured, our lawyers will not pressure you or your business to file for bankruptcy unless it is the best debt relief option in front of you. If divorce is in the picture, we will help you time your bankruptcy and divorce optimally with regard to your personal as well as business debts and assets. To schedule a consultation about a possible business bankruptcy or debt reorganization plan, call 877-690-8163 or email us.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.