Denver Bankruptcy Attorney Outlines Bankruptcy Alternatives
Not every creditor problem requires bankruptcy for a solution. In some cases, an individual or business will, for example, have a limited number of creditors and could pay back its debts if payment deferral or stretch-out terms can be negotiated. Southeast Denver bankruptcy lawyer Jon B. Clarke can help in these situations. He can advise you on whether alternatives to bankruptcy, such as piecemeal settlements, stipulated debt workouts, or out-of-court private liquidations, are best suited to help you achieve debt relief.
At the Law Office of Jon B. Clarke, P.C., we may talk to your creditors one-on-one to negotiate more manageable payment terms. Many creditors would prefer receiving a guaranteed amount of money now instead of forcing a bankruptcy filing and having to wait possibly years before seeing potentially even less. Contact our Denver-area law office to find out if this is an option for you.
Bankruptcy Alternatives for Business Debtors
There are two primary alternatives to filing bankruptcy — work out effective payment plans and ceasing business operations (“going dark”).
Debt Workout Agreements
For more than 35 years, lawyer Jon B. Clarke has negotiated with clients’ creditors to develop effective payment plans. Creditors seek assurance that debtors will endeavor to avoid filing for bankruptcy while paying them back. If the debtor has unprotected assets or the business is starting to show profit but just needs more time, the workout can give the debtor the break needed to continue in business. Frequently, the subtle threat inherent in retaining an experienced Chapter 11 bankruptcy attorney gives the debtor badly needed credibility and clout in the workout negotiations.
Ceasing Business Operations
Mr. Clarke may advise management to close down the business without bankrupting it. This option is applicable when:
- Bank loans, tax liens, equipment leases, etc. fully encumber all the business assets such that there is nothing for a Chapter 7 bankruptcy trustee to liquidate
- Operating the business will increase likelihood of a missed payroll
- Operating the business with result in nonpayment of payroll or sales taxes
- Operating the business will likely result in the improper utilization of customer deposits
Ceasing business operations as an alternative to bankruptcy normally results in stress for the owners as lenders, lessors and trade creditors seek to hold them personally liable for the business debts. We can communicate details about the shutdown to creditors and assert the noncollectibility of unsecured debts.
Attorney Clarke also invites negotiation for settlement of verifiable personal guaranty claims against the officers, directors and shareholders. Part of our work includes counseling the failed business owners on scenarios and strategies for protection of their personal assets.
To help us get started, please complete our Business or Consumer Debtor Analysis form.