Consumer Bankruptcy and Restructuring

Our Bankruptcy and Reorganization practice group has a lot of experience handling complex issues that arise in bankruptcy, restructurings and liquidations.

BANKRUPTCY AND REORGANIZATION
Bankruptcy law is somewhat unique and complicated, mainly due to uncertainty about the best course of action for each person’s situation. There is no one common silver-bullet solution for an individual or a small business undergoing a liquidity crisis. They need creative and efficient solutions to immediate and oftentimes complex problems. Plus, bankruptcy has long-term financial and legal outcomes for an individual. Personal bankruptcy requires careful analysis of a person’s financial situation and an understanding of a wide range of legal issues.

Our Bankruptcy and Reorganization practice group has specialized experience handling complex issues that arise in bankruptcy, reorganizations, restructurings, workouts and liquidations. We provide advice and support to the many debtors, official creditors’ committees, officers and directors, secured and unsecured creditors, purchasers of assets or equity of distressed companies.

At LGIC, the full range of our business lawyers and bankruptcy attorneys will help you weigh your options, and determine whether bankruptcy is appropriate and cost-effective for you, or whether any other alternatives to bankruptcy might be suitable for your circumstances.

Chapter 7 Bankruptcy
Chapter 7 bankruptcy protection allows debtors to use income and liquidation of all non-exempt assets to get rid of as much debts as possible. In return, the court cancels most, if not all, of the debts.

Chapter 11 Bankruptcy
Individuals suffering overwhelming debt problems, and who exceed the debt limits for filing Chapter 13 bankruptcy, may also take advantage of the beneficial provisions in Chapter 11 to overcome their unmanageable debt issues. For an individual, Chapter 11 allows the debtor to restructure his/her finances through plan payments approved by the court.

Chapter 12 Bankruptcy
Chapter 12 bankruptcy is a relatively new addition to personal bankruptcy intended to help “family farmers” and “family fisherman” with “regular annual income” to restructure their finances and avoid liquidation or foreclosure. Similar to Chapter 13 bankruptcy, Chapter 12 debtor proposes a plan to pay creditors over a period of three to five years.

Chapter 13 Bankruptcy
Chapter 13 bankruptcy is also called a wage earner’s plan because it enables individuals with regular income to develop a plan to repay all or part of their debts without the need to liquidate personal assets to repay creditors.

Business Reorganizations and Workouts
We bring a full range of skills needed to help our clients in mergers and acquisitions, complex restructurings, business reorganization, borrower’s out-of-court workout options, Chapter 11 cases, distressed company litigation, dissolution and winding up of companies.

LGIC business attorneys regularly provide advice on related services, including structuring of cross-border issues: formation of legal entities, corporate governance, commercial and compliance matters, and business risks. Others are tax issues and investment incentives, intellectual property and licensing matters, powers of attorney and other estate planning documents, employment agreements, software as service agreements, and loan modification documents.

We have guided foreign investors through business planning, business formation and legal entity selection, business start-up stages, business growth, and provided business advisory services, including legal, finance, tax, market and risks factors involved in setting up a new business overseas.

Business Reorganization
Chapter 11 bankruptcy is usually an option for businesses undergoing a liquidity crisis to reorganize their debt and finances under the protection of the bankruptcy court to protect the assets of a company while the management negotiates new terms with its creditors.

Under Chapter 11, the management of the company proposes a plan of reorganization to keep the business alive and pay creditors over time.

Chapter 11 offers specific advantages for those that qualify, including a significant level of flexibility than other chapters, but it is much more time-consuming and costly than other forms of bankruptcy.

We have the right experience representing all the significant constituencies in bankruptcy proceedings and out-of-court workouts, including debtors, committees, trustees, asset purchasers, and third-party plan proponents. Our clients include large institutions, as well as small businesses and individuals.

Bankruptcy Litigation
Bankruptcy litigation can take many forms, and may raise issues that affect the rights of creditors, debtors, committees, and trustee. Our team’s extensive experience in bankruptcy, federal, and state courts allows us to better address a wide range of complex bankruptcy-related litigation issues. We assist our clients in all contested matters and adversary proceedings, including fraudulent conveyances, preferences, relief-from-stay motions, and trustee motions.

Our services include bankruptcy reorganization cases, out-of-court restructuring or workouts of commercial loans, in-court restructuring, liquidations, debtor-creditor litigation in and out of bankruptcy court, commercial and banking litigation, reclamations, and receiverships and assignments for benefit of creditors.

We represent creditors and debtors in diverse industrial settings, including:

• Healthcare
• Services
• Retail
• Professionals
• Nonprofit organizations
• Finance
• Agriculture
• Franchise
• Manufacturing
• Banking
• Real Estate
• Construction

Our goal is to help navigate our clients through the bankruptcy and reorganization process, steering a course that protects their current and future financial interests and puts them on the path to success. Achieving our client’s goals involves taking time to understand their specific financial and operating concerns, and providing real, practical solutions and guidance on how to address their issues, including effective negotiation with multiple parties such as creditors, equity security holders’ committee, and other parties in interest. For creative solutions and quality legal counsel for you or your small business or corporation, contact us online or call 202-349-5784 to schedule a consultation today.