I believe my real world business experience and my combination JD/MBA degree give me a unique perspective into the bottom line needs of my clients. As Business owner, you will find I speak your language, and can quickly help you identify your core assets, and select the appropriate legal action.
Bankruptcy is a very critical time in your business and personal life. Because every case is unique, you need a law firm that understands your individual needs and has the business education and experience to match the special needs of small and medium business owners.
Many of the law firms who are advertising Bankruptcy have only recently started practicing in this area. I have practiced primarily in this area for over 14 years.
Bankruptcy law provides options by which a person (sole proprietorship) or Corporation is able to reorganize to stay in business and “fend off” creditors.
The Liquidation Value (value of business in a quick sale) is paid to the unsecured creditors over time. If the business has little or no value on the open market, then the only value wich must be paid to creditors is the “hard assets” of the business. Some of these assets,such as “tools of the trade” may be exempt, and do not need to be paid.
For example, a small business owner with mostly credit card debt, will likely be able to keep the business and pay a small percentage of the total debt.
Debts which must be paid such as secured arrearages, tax liability such as 941 witholding and sales taxes can be restructured so that they are paid over time. If the business has a positive cash flow, then the “old debt” can be reorganized through bankruptcy.
Chapter 11 is a business reorganization. Chapter 11 is a viable option if your business can “cash flow” on a monthly basis in relation to “regular overhead”. Investment property’s mortgages can be restructured so that Fair Market Value of Property (Motion to Value Property)is paid as opposed to present loan balance. In these times, there often is a dramatic difference. In this way, the monthly rent can pay the new monthly mortgage obligation.
As a result of the recent decline in real estate values, many people owe substantially more than their house is worth. Anyone with a jumbo loan or multiple properties may need to file chapter 11 Bankruptcy to reorganize their debts. In the Ninth Circuit (which includes Las Vegas) individuals with more than $367,000 in unsecured debt are ineligible for Chapter 13 protection, and must file Chapter 11 Bankruptcy to reorganize debt.
This scenario happens frequently, because “undersecured debt” is considered “unsecured debt” under Ninth Circuit case law. For example, a house may have a $700,000 mortgage, yet the valuation of the property has fallen to $350,000. The court considers the $350,000 shortfall to be unsecured debt. Adding in only $20,000 of unsecured debt would bring the total over the Chapter 13 eligibility threshold.
There are convenient payment option plans available.