Many individuals and businesses that find themselves in financial distress mistakenly assume that bankruptcy is the only means available to handle their problems. The bankruptcy laws are powerful tools, particularly the Chapter 11 provisions by which you can develop a plan to reorganize your affairs by means that may include paying off creditors over time. There also are many alternatives to bankruptcy. For California business owners, the following options can prove useful in resolving financial problems:
Assignment for the Benefit of Creditors: An assignment for the benefit of creditors is a business liquidation device available to an insolvent debtor as an alternative to formal bankruptcy proceedings. It is governed by California state law, not federal bankruptcy law, and does not require a court filing to commence. Instead, the debtor signs documents transferring possession and control of the assets to a qualified fiduciary who then handles the liquidation, which in some circumstances may include sale of an ongoing business.
Receivership Solutions: California Receivership laws are a flexible tool that can be used to obtain the services of a skilled, experienced fiduciary to solve business problems including the wind-up and dissolution of a business entity, the sale of a business as a going concern, or negotiating a debt restructuring.
I have experience dealing with bankruptcy cases under Chapters 7 and 11, the creative application of receivership laws, and the workings of assignments for the benefit of creditors, and can explain how they may be the right choice for you. To schedule a consultation please contact me online or by telephone at (951) 387-5888.