Knowledge of Bankruptcy Laws Is Essential to Business Lawyers
"Bankruptcy" is not a dirty word! Every business and corporation must know about bankruptcy. And, it is essential that their legal counsel have a solid working knowledge of the bankruptcy laws. What most do not realize is that the bankruptcy laws are a very powerful and useful tool in the hands of experienced business lawyers, for both creditors and debtors.
The philosophy behind the bankruptcy laws are summed as follows: "fresh new start" or "strength through reorganization." For creditors, the bankruptcy laws impact them differently depending upon the nature, type and class of the creditors' rights. For debtors, the bankruptcy laws can be the difference between losing everything and gaining a new lease on life.
We have the requisite knowledge, experience and expertise to assist our business and corporate clients in bankruptcy, whether they are creditors or debtors. We represent clients in all aspects of the Chapter 7 (Liquidation) and Chapter 11 (Business Reorganization) proceedings. We do not handle Chapter 13 (Consumer Reorganization) cases.
We have handled simple to complex bankruptcy cases, having represented businesses and corporations as well as banks and quasi governmental agencies such as FDIC. We do not take our clients into bankruptcy except when it is absolutely necessary. When we do, our business and corporate clients are counseled and guided every step into, during and out of the bankruptcy proceedings. When our clients, as creditors, face the formidable obstacles of the protection the bankruptcy law, we skillfully find ways to preserve the rights of our creditor clients.
Experienced bankruptcy lawyers must not only know the bankruptcy laws but must also have instincts for navigating the complexities of bankruptcy proceedings. As in may different business contexts, an advance planning is extremely important in all bankruptcy proceedings.
Bankruptcy proceedings may include "cases within case" such as adversarial proceedings that may be instituted by any of the parties involved such as creditors, debtors, bankruptcy trustees, US trustees and/or any other third parties who may have standing. Because the bankruptcy courts are generally considered the courts of equity and are equipped with special laws and powers that are not available non-bankruptcy courts, and because the bankruptcy judges are also given a fair degree of latitude of discretion to decide not only law but in equity, there are many ends that can be achieved in the bankruptcy proceedings where they may not be possible in other types of courts.
Preserving Business and Corporate