Align Current Finances with Your Company's Future
AlignX Law can help businesses engaged in any aspect of bankruptcy process—from companies in need of reorganization to those who have a claim against a bankruptcy company or individual, and third parties who wish to acquire assets—AlignX Law works with its clients to devise a strategy for success. AlignX Law will devise a customized plan that best suits your company's needs.
The following is a brief overview of some tools available to you and/or your company.
Chapter 11 proceedings allow a business or individual that is struggling financially to restructure and continue operating. To do so, filing bankruptcy under Chapter 11 allows companies to discharge certain debts while it also stops collection proceedings and freezes other litigation during the bankruptcy's pendency.
AlignX Law can represent you throughout a Chapter 11 reorganization, with services including:
- Determine if you qualify for Chapter 11 as a large or small business
- Analyze your assets, debts, and other potential liabilities
- Prepare the company's bankruptcy petition, disclosure statement, and all other required notices and pleadings
- Prepare a proposed Plan of Reorganization, and seek confirmation of the plan.
- Represent you in court with all relevant parties.
Small Business Reorganization Act of 2019 (SBRA): Recognizing that Chapter 11 proceedings were too expensive for small businesses hoping to reorganize, Chapter 11 has been revised to simplify its procedures to make it more accessible for small businesses.
For example, under SBRA, small businesses are not required to have a committee of creditors, and creditors cannot file competing plans of reorganization—making court approval of the debtor's more streamlined and faster.
AlignX Law's SBRA-related services include:
- Analysis of debts, assets, and other pending liabilities
- Determination of SBRA eligibility
- Preparation of the Plan of Reorganization and other court filings
- Review of personal mortgages if the property was used for business
- Representation at court proceedings, status conferences, and any other meetings with the appointed trustee
Alternative to Bankruptcy: Out of Court Workouts
We may recommend using bankruptcy proceedings or other tools to reorganize debts and restructure assets. But formal bankruptcy filings are not the only option. An out of court workout may be a path to resolve creditor disputes, by asking creditors to accept new repayment plans.
Assignment for the Benefit of Creditors (ABC Liquidation):
As an alternative to filing for bankruptcy, Florida companies can opt for an Assignment for the Benefit of Creditors, a.k.a., ABC Liquidation.
In an “ABC” proceeding, the company chooses an assignee to liquidate the company's assets, pay creditors, and then give any remaining funds back to the company. While ABC proceedings do not stay collection actions or discharge a company's debts, companies may choose an ABC Liquidation because it can be faster and less expensive than a bankruptcy filing.
Services AlignX Law can provide for an ABC include:
- Analysis to confirm if ABC is the best strategy for your firm
- Research for assignee selection
- Conduct due diligence
- Review of assets and debts
- Analysis of other contracts for other existing and potential liabilities (including those arising out of an ABC selection)
Chapter 7 Bankruptcy: Chapter 7 bankruptcy is intended to help individuals resolve financial problems. Examples of when a Chapter 7 filing is warranted include when individuals have personally secured business debts, owe large amounts to creditors from lawsuits, or have investment properties that are underwater (i.e., when more is owed than the property is worth). As an individual seeking Chapter 7 relief, AlignX Law can:
- Determine if you qualify for Chapter 7
- Review your assets and liabilities to determine indebtedness
- Determine asset eligibility for exemptions and advise you on how to protect eligible assets
- Prepare court filings, required forms, and documents
- Represent you in court and during meetings with the trustee and creditors
- Engage in litigation as necessary
Other Services Related to Bankruptcy Proceedings
Representation of Creditors
We advocate for creditors engaged in bankruptcy proceedings, ensuring that they get the greatest possible recovery for money the debtor owes them. We do this by analyzing the debtors' restructuring proposals and competing creditor claims, representing creditors in creditor meetings and related proceedings, and ensuring that our clients have the information they need to maximize their return and minimize the disruption the debtor's filing may have on their financial wellbeing.
Third-Party Asset Sales Representation
In bankruptcy, the trustee or debtor may sell assets free and clear of liens and claims with the permission of the bankruptcy court. For third parties interested in purchasing assets from a bankruptcy estate, we help negotiate and structure the sale, and guide our clients through the bankruptcy sale process.
Hypothetical Bankruptcy Analysis
Before beginning the bankruptcy process, Align X can perform a mock bankruptcy filing on your behalf to give you all the information you need to make the best financial decision.
- Bankruptcy Scenarios: Align X will offer you the best and worst-case scenarios for your bankruptcy filings, including what assets you may need to sell or retain in Chapter 11 or Chapter 7 bankruptcy and the legal issues that may arise during the process.
- In-Depth Analysis: We'll perform an in-depth analysis of your financial situation, looking at your assets and debts, and providing you with options.
Your company can later use this comprehensive analysis in negotiations with creditors.