One of the toughest situations for a business owner or executive is when your business is experiencing financial distress. While most people fear the word bankruptcy, if your business has consistent cash flow, even if it cannot meet all of its current debt obligations, you may be able to save your business by means of a bankruptcy proceeding known as a Chapter 11 reorganization. Chapter 11 of the Bankruptcy Code allows a business to address its debts in an orderly fashion by means of payment plan and enables that business to emerge as a stronger and healthier entity at the conclusion of the process.
At the Law Office of Ethan Ganc, we understand that bankruptcy, more so than almost any other, requires thoughtfulness and compassion from your legal advisors. Our lawyers provide expert counsel to business owners who have questions about whether they can restore their business to health. We will listen to your needs, counsel you on your options, and if possible, we can help your business rehabilitate and reorganize under Chapter 11. Moreover, some small businesses can now take advantage of a less expensive, more streamlined version of Chapter 11 called Subchapter V.
If Chapter 11 is not feasible, we can help your business liquidate by means of a Chapter 7 bankruptcy proceeding or provide out-of-court alternatives to a bankruptcy proceeding.
We provide the following services to owners and executives of distressed businesses:
Our firm has significant experience in all aspects of bankruptcy practice, and our lawyers have represented many constituencies in the bankruptcy process, including debtors, individual creditors (with particular experience representing financial institutions), creditors’ committees, and liquidating trustees.
If you are the principal (owner) of a small or medium-sized business, you may have been required to sign a personal guarantee. When you sign a personal guarantee, you agree to be liable on an individual basis for the business’s obligations, e.g., under a line of credit or commercial lease. If your business is unable to meet these financial obligations for whatever reason, you will be personally responsible for any debts you guaranteed.
While there may be reasons why it does not make sense legally or economically for the business itself to file for bankruptcy protection, it might nonetheless be beneficial for you to file for personal bankruptcy to discharge the liability under the personal guarantees. In such cases, we advise business owners about their bankruptcy options and represent them in a personal bankruptcy proceeding, either Chapter 7 or 13, where appropriate.