Indianapolis, IN Insolvency Attorneys
Insolvency is the inability of an individual or a business entity to pay financial obligations as agreed. When problems occur that make it difficult or impossible for a business to pay its debts, there are several options to consider.
Bankruptcy is a legal action that allows a business certain rights when faced with the inability to pay its debts. Federal bankruptcy law and courts provide a structure for businesses in peril.
For troubled businesses facing insolvency issues and their creditors, filing a Chapter 11 business bankruptcy in Indiana is not the only option. Depending on the situation, one or more of these alternatives may provide a better strategy and platform to resolve issues:
- Debt Restructuring and Loan Workouts – Negotiating modifications to the initial loan agreement. This typically means rescheduling the loan for a reduction in payments, and may include partial liquidation of collateral.
- Out of Court Liquidation – A business may decide to liquidate assets such as equipment, inventory and real estate to pay its creditors rather than file for bankruptcy protection.
- Receivership – The Court may appoint an independent party to control the assets of a business to ensure preservation of property or payment of obligations, or to take control of an operating business or commercial real estate.
- Replevin – Require a borrower to relinquish collateral to the secured creditor through a court order.
- Foreclosures – A legal procedure which provides for the judicial sale of mortgaged real property in the event that a borrower cannot pay the mortgage obligation.
- Corporate and Partnership Dissolutions (business break-ups) – Breaking apart a business entity to separate owners and satisfy the claims of creditors.
If your business is having difficulty meeting its debt obligations or if you have to collect a problem loan or obligation and you are unsure what course of action is best, a skilled Indianapolis business bankruptcy attorney can advise you of your legal rights and options. Just as every business is unique, so are the alternatives it can choose to remedy insolvency issues. Contact us today to get started on developing a plan to help your business get back on track and headed in the right direction.