San Diego Business Bankruptcy Lawyer

Helping you find debt relief
Filing for bankruptcy is an important decision that has significant implications for your life. But when mounting debt begins to feel unmanageable, bankruptcy can provide relief. Curry Advisors helps you decide whether filing for bankruptcy is the most effective way for you to take control of your debt.

The most important thing to do is not to wait until it's too late. We have found that a critical factor in helping a company or an individual through difficult financial situations is ensuring the client fully understands the tools at his, her, or its disposal to fix those problems at the earliest signs of trouble. Bankruptcy, in the right circumstances, can be used to help struggling businesses not only to survive, but to emerge stronger and more competitive. That is why we help our clients evaluate the risks, benefits and implications of not just a bankruptcy filing but various other alternatives.

We first perform a careful analysis of your business’ complete financial and operational situations, and then provide you with a range of possible solutions. Our objective is to give you the information you need to make informed choices about the range of strategies that can be used to address business insolvency, whether that strategy includes asset liquidations, non-judicial workouts, receiverships, restructurings, assignments for the benefit of creditors, bankruptcy, or some combination of these approaches. Contact us today to find the right solution for your business.

We can help you with:

• Workouts
• Chapter 11 business bankruptcy (entities and individuals)
• Dissolution of a business and business Chapter 7 bankruptcy

Workouts
For many businesses, a lack of liquidity or inability to grow due to creditor demands keeps them from successfully resolving their financial problems. As banks and other creditors begin to call loans due, clients begin to have difficulty juggling between them. As these businesses' cash dries up, so does their ability to keep their creditors content. Once liquidity becomes an issue, clients do not have the time or know-how to work with creditors to restructure the debt into a more manageable plan and run their businesses at the same time.

We begin by analyzing a client's financial situation from the top down. We review the client's financial information to determine their current financial position. We then analyze the client's debt from all aspects, including:

• How much debt they owe
• The type of debt and its aggregate amount
• The urgency associated with particular debts
• Any inchoate (hidden) problems that the client might not realize

After conducting this analysis, we then begin negotiating with the client's creditors to restructure their debt so that they can more effectively run their business while meeting financial obligations.

In some cases, the problems with a business may be just as much internal to the business as external to it. In these cases, we guide our clients through a complete restructuring of their business from the top down. Often, this allows the client to accomplish the same goals as would be accomplished through a debt restructuring or a Chapter 11 bankruptcy, but with the added benefit of having a business rebuilt from the inside out to avoid the recurrence of many problems in the future.

To the extent that negotiation or restructuring of the business has been or will be unsuccessful, a Chapter 11 bankruptcy or dissolution of the business may be an option. If you're ready to speak with a professional, contact us online or at 619-238-0004.

Chapter 11 business bankruptcy
In some cases, bankruptcy reorganization is the best solution. For businesses, this typically means a Chapter 11 bankruptcy. There are many reasons why a client may need to file a Chapter 11 bankruptcy. Most often, this is because a client's creditors have become so aggressive that no negotiation will stop them from taking damaging collection action or the client has allowed the problem to develop to a point that drastic action is needed to prevent the loss of cash or property.

Chapter 11 is the chapter of the U.S. Bankruptcy Code that governs the process of reorganization under the bankruptcy laws of the United States. Alternatively, Chapter 7 governs the process of a liquidation bankruptcy. The purpose of a Chapter 11 bankruptcy case is generally to permit the rehabilitation and reorganization of the debtor's business. The Bankruptcy Code allows the debtor to accomplish this task by creating an "automatic stay" that prevents creditors from taking collection action against the debtor, including filing lawsuits, obtaining judgments, collecting on levies and garnishments, and other actions that could damage the business.

The theory of Chapter 11 bankruptcy is that the value of a typical business as a reorganized going concern is substantially more than the value of its assets if sold individually. For that reason, Chapter 11 allows a troubled business to continue operating, cancels some of its debts and transfers some or all of the newly reorganized company to the creditors whose debts were cancelled. If the company is reorganized, rather than liquidated, jobs may be saved, assets are retained, and the remaining creditors and equity participants may have smaller losses than if the company is dismantled.

One of the principal benefits of a Chapter 11 bankruptcy is that it allows a debtor to keep all or a portion of the its assets; it is unlike Chapter 7, which permits the retention of only a limited amount of the individual debtor's "exempt" property (entities are not allowed to exempt property under the U.S. Bankruptcy Code). Rehabilitation of the debtor's business is accomplished through the creation of a Chapter 11 Plan that provides for the treatment of all claims against the debtor and the terms that will govern reorganization of the debtor's financial structure and operations. In most instances, the debtor's Chapter 11 Plan will be the result of a consensual arrangement between the debtor and its creditors and equity security holders. However, Chapter 11 does have certain provisions that allow the debtor to impose its Chapter 11 Plan on dissenting claimants in certain circumstances.

The court can grant complete or partial relief from most of the company's debts and its contracts so that the company can make a fresh start. In many cases involving large business enterprises or publicly held companies, the result of the Chapter 11 reorganization is the transfer of all or a substantial portion of the company's equity ownership from its prior owners (stockholders) to its bond holders and other creditors. In those cases, the company's creditors accept ownership of the company in lieu of payment on their claims in the hopes that it will eventually succeed financially and provide them with compensation for their losses. The debtor can also elect to terminate certain contracts and leases. Typical debts and contracts cancelled in a Chapter 11 bankruptcy include unsecured loans, union contracts (when cancellation would be financially favorable to the company), supply or operating contracts (involving both vendors and customers), and long-term real estate leases.

After filing a Chapter 11 and obtaining plan confirmation, the company may emerge from bankruptcy. Sometimes this takes only a few months; in other situations it may take several years. At times, the process can be long and complex, and at times, the reorganization fails and the company is liquidated, but the goal of Chapter 11 is to preserve the ongoing value of the business enterprise, to preserve jobs and assets, and to result in a new reorganized, healthy business.

Chapter 11 Bankruptcy--New Subchapter V

Subchapter V of Chapter 11 contains new bankruptcy law provisions that make Chapter 11 more streamlined and often less expensive than regular Chapter 11.  First implemented in 2020, this new bankruptcy procedure provides powerful options for businesses and individuals who wish to reorganize.   Curry Advisors can help you decide whether a Subchapter V reorganization makes sense for you or your business.  

Dissolution of a business and business Chapter 7 bankruptcies
We have more than 20 years of experience in helping businesses (entities and individuals engaged in businesses as sole proprietorships) close their doors in the manner that is most advantageous to the owner of the business with the least amount of impact possible on its employees. Typically, this takes the form of an orderly winding up of the business's affairs until the ultimate dissolution of the business. Alternatively, we may determine that a Chapter 7 bankruptcy to liquidate the business' assets is appropriate. In either event, we endeavor to limit the impact on the owner's personal life and finances.

If you are considering a business bankruptcy, contact us today.

Contact an experienced California bankruptcy attorney.
Call Curry Advisors at 619-238-0004 or contact us online to schedule your appointment.