What to Expect from Figeroux & Associates in Bankruptcy and Restructuring

Editorial credit: Vitalii Vodolazskyi / shutterstock.com

Introduction
Navigating bankruptcy and restructuring requires a deep understanding of financial and legal complexities. For businesses facing financial distress, bankruptcy or restructuring can provide a pathway to manage overwhelming debt, preserve value, or pursue an orderly exit from the market. Figeroux & Associates is a full-service law firm with expertise in bankruptcy law, offering support to businesses and creditors across a range of bankruptcy and restructuring scenarios. The firm’s services encompass everything from filing for bankruptcy and negotiating debt restructures to representing creditors and managing asset sales.

This article provides a comprehensive analysis of what clients can expect when working with Figeroux & Associates for bankruptcy and restructuring services, including the firm’s approach, strategies, and outcomes.

1. Assisting Businesses in Filing for Bankruptcy Under Chapter 7 or Chapter 11

Filing for bankruptcy is a significant decision for any business, with Chapter 7 and Chapter 11 as two primary pathways. Chapter 7 involves liquidating a business’s assets to pay off debts, while Chapter 11 allows a business to reorganize its finances and continue operations. Each path offers different benefits depending on the business’s goals, and Figeroux & Associates provides tailored support to help clients determine and pursue the best option.

Chapter 7 Bankruptcy: Liquidation

Chapter 7 bankruptcy is generally suited for businesses that are unable to sustain operations and need to liquidate their assets to pay off creditors. In this type of bankruptcy, a trustee is appointed to oversee the sale of the business’s assets, and the proceeds are distributed to creditors.

What Clients Can Expect:

• Comprehensive Initial Assessment: Figeroux & Associates begins with a detailed assessment of the business’s financial situation, reviewing liabilities, assets, and cash flow to determine whether Chapter 7 is the most viable option.
• Preparation of Bankruptcy Petition: The firm assists in preparing and filing the bankruptcy petition, ensuring that all necessary information about assets, liabilities, creditors, and financial statements is accurately documented.
• Representation in Court Proceedings: Once the petition is filed, Figeroux & Associates represents the client in all court proceedings, communicating with the bankruptcy trustee, creditors, and the court on the client’s behalf.
• Asset Liquidation Support: Figeroux & Associates coordinates with the trustee to facilitate the liquidation process, helping to ensure assets are sold efficiently and at fair value. The firm advises clients on the potential outcomes and distribution priorities, allowing them to manage expectations during liquidation.

Chapter 11 Bankruptcy: Reorganization

Chapter 11 bankruptcy is designed for businesses seeking to restructure their debts and continue operating. This involves creating a reorganization plan that outlines how the business will handle its debts while maintaining operations.

What Clients Can Expect:

• Detailed Restructuring Strategy Development: Figeroux & Associates works closely with clients to develop a comprehensive restructuring strategy, including analyzing cash flow, identifying critical creditors, and creating a reorganization plan.
• Preparation and Filing of Chapter 11 Petition: Filing for Chapter 11 involves extensive documentation and preparation. The firm assists with drafting the petition, which includes financial information, statements, and a proposed restructuring plan.
• Reorganization Plan Negotiation: Once the petition is filed, Figeroux & Associates negotiates with creditors to create a viable reorganization plan. This may include adjusting payment schedules, reducing debt amounts, and restructuring contracts to ensure the business can maintain its financial obligations while operating.
• Court Representation Throughout the Process: Chapter 11 is a lengthy process that requires ongoing court appearances, updates, and reports. Figeroux & Associates represents the business in all court proceedings, advocating for the plan’s approval and addressing any objections from creditors or the court.
• Post-Confirmation Compliance: After the reorganization plan is approved, the firm assists with compliance, helping the business adhere to the terms of the plan and avoid any actions that could lead to dismissal or conversion to Chapter 7.

Additional Support During Bankruptcy Filings

For both Chapter 7 and Chapter 11 filings, Figeroux & Associates offers continuous support, advising on operational and financial decisions that could impact the bankruptcy outcome. They also provide guidance on how to minimize potential impacts on stakeholders, including employees and suppliers.

2.Negotiating Debt Restructuring Agreements with Creditors

Debt restructuring allows businesses to renegotiate the terms of their debts without filing for bankruptcy. It’s a valuable option for businesses that are struggling financially but believe they can recover with adjusted debt obligations. Figeroux & Associates brings negotiation expertise to the table, working with creditors to develop mutually agreeable restructuring terms that enable the business to stabilize and regain financial health.

What Clients Can Expect:

• Financial Analysis and Restructuring Strategy: The firm starts by assessing the client’s financial situation, examining cash flow, liabilities, and assets to understand how much debt can realistically be repaid under restructured terms. This analysis forms the foundation of the restructuring strategy.
• Negotiating Favorable Terms with Creditors: Figeroux & Associates engages in negotiations with creditors to modify interest rates, extend repayment periods, and reduce principal amounts. The firm aims to secure terms that allow the client to maintain operations while gradually paying down debt.
• Developing a Debt Repayment Plan: A debt restructuring agreement typically includes a revised repayment plan. Figeroux & Associates works with clients to draft a plan that is manageable within their cash flow constraints, ensuring realistic and achievable payments.
• Avoiding Bankruptcy Filing: One of the key benefits of debt restructuring is avoiding the costs, time, and potential stigma associated with bankruptcy. Figeroux & Associates strives to help clients achieve sustainable debt levels without filing for bankruptcy, preserving the business’s reputation and continuity.
• Documentation and Legal Compliance: The firm ensures that all restructuring agreements are documented accurately, including terms for payment schedules, interest rates, and collateral. This reduces the likelihood of disputes with creditors in the future and ensures the client is fully compliant with legal requirements.

Ongoing Debt Management Support:

Figeroux & Associates offers additional support following debt restructuring, helping clients manage payments, track compliance, and handle any issues that arise during the repayment period. This long-term support is essential for businesses committed to financial recovery.

3.Representing Creditors in Bankruptcy Proceedings to Maximize Recoveries

In bankruptcy proceedings, creditors face the risk of limited recoveries or, in some cases, no recovery at all. Figeroux & Associates provides comprehensive representation for creditors, advocating for their interests and seeking to maximize recovery. The firm represents both secured and unsecured creditors, helping them navigate the complexities of bankruptcy and ensure that their rights are protected.

What Creditors Can Expect:

• Thorough Analysis of Bankruptcy Filing: Figeroux & Associates carefully reviews the debtor’s bankruptcy filing, including their list of assets, liabilities, and proposed payment plans. This analysis allows the firm to develop a strategy aimed at maximizing recovery for the creditor.
• Filing Proofs of Claim: For creditors to be eligible for payments in bankruptcy proceedings, they must file a proof of claim. The firm assists with filing timely and accurate proofs of claim, detailing the amount owed and providing evidence of the debt.
• Representation in Creditor Committees: In Chapter 11 bankruptcy, creditors often form committees to represent their collective interests. Figeroux & Associates represents creditors in these committees, advocating for fair treatment and opposing any restructuring terms that would be unfavorable to the creditor.
• Pursuing Secured Claims and Liens: Secured creditors have a right to specific assets in the event of default. The firm assists secured creditors in enforcing their claims, seeking to recover collateral or negotiate terms that respect the creditor’s secured status.
• Negotiating Payment Plans or Settlements: If the debtor proposes a payment plan, Figeroux & Associates negotiates on behalf of creditors to ensure that the plan provides adequate compensation. In cases where the business is unlikely to fulfill its obligations, the firm explores settlement options to secure partial recoveries.
• Litigating Objections to the Bankruptcy Plan: If the proposed bankruptcy plan does not fairly consider the interests of creditors, Figeroux & Associates represents clients in objecting to the plan in court. The firm presents evidence, examines witnesses, and makes arguments aimed at amending or rejecting unfavorable plans.

Post-Bankruptcy Support for Creditors:

After the bankruptcy concludes, the firm assists creditors in enforcing any judgments or payment plans. This includes monitoring compliance, tracking payments, and taking legal action if the debtor fails to adhere to the plan.

4. Managing Business Liquidation and Asset Sales

When businesses can no longer sustain operations, liquidation may be the best option to repay creditors and wind down the business. Figeroux & Associates assists businesses and creditors with managing the liquidation process, overseeing asset sales, and ensuring compliance with bankruptcy laws. Whether voluntary or involuntary, liquidation requires careful planning and strategic execution.

What Clients Can Expect:

• Determining Liquidation Strategy: Figeroux & Associates helps clients decide on the most effective liquidation strategy, considering factors such as asset values, creditor claims, and overall market conditions. The firm advises on whether an orderly sale, auction, or piecemeal liquidation is most appropriate.
• Coordination with Bankruptcy Trustee (in Chapter 7 Cases): In Chapter 7 bankruptcy, the bankruptcy trustee is responsible for liquidating the debtor’s assets. Figeroux & Associates collaborates with the trustee to ensure assets are sold efficiently and creditors’ claims are prioritized fairly.
• Maximizing Asset Sale Value: The firm assists in valuing assets and identifying qualified buyers, working to secure fair market value for property, equipment, inventory, and intellectual property. By maximizing the value of assets sold, Figeroux & Associates helps increase recoveries for creditors and other stakeholders.
• Compliance with Bankruptcy Laws and Procedures: Liquidation involves adhering to strict legal requirements, including notifying creditors, holding public auctions, and distributing proceeds according to bankruptcy priorities. Figeroux & Associates ensures full compliance with these procedures to avoid legal complications.
• Managing Secured Assets and Collateral Recovery: For secured creditors, liquidation may involve recovering specific assets used as collateral. Figeroux & Associates assists secured creditors in enforcing their claims, seeking the recovery of collateral assets or negotiating settlements that respect the creditor’s secured status.
• Final Distribution and Winding Down of the Business: After asset sales are complete, Figeroux & Associates coordinates the final distribution of proceeds to creditors based on legal priority. The firm also handles the administrative steps necessary to officially dissolve the business, ensuring compliance with state and federal laws.

Additional Support for Business Owners Post-Liquidation:

For business owners who wish to re-enter the market or manage remaining personal liabilities, Figeroux & Associates provides guidance on post-liquidation steps, credit repair, and asset protection.

Conclusion

Figeroux & Associates offers a comprehensive range of services in bankruptcy and restructuring, providing both businesses and creditors with the expertise necessary to navigate financial distress and complex legal proceedings. Whether filing for bankruptcy, restructuring debt, representing creditor interests, or managing liquidation, the firm’s client-centered approach ensures thorough representation and strategic solutions for challenging financial situations.

For businesses facing insolvency, Figeroux & Associates provides a roadmap for resolving debt, preserving value, and pursuing either reorganization or liquidation based on specific needs. In cases of debt restructuring, the firm negotiates favorable terms that allow businesses to regain financial stability without the need for formal bankruptcy. For creditors involved in bankruptcy proceedings, the firm advocates for maximum recoveries and offers representation that ensures fair treatment and compliance with legal obligations. Finally, for businesses needing to liquidate, Figeroux & Associates manages the asset sale and distribution process to optimize value and complete the winding-down process effectively.

With a reputation for reliable counsel, strategic planning, and dedicated client service, Figeroux & Associates supports clients through each stage of bankruptcy and restructuring, helping them achieve the best possible outcomes in financially challenging circumstances. Whether navigating bankruptcy or restructuring for recovery, businesses and creditors alike can rely on the firm’s expertise to protect their interests and guide them toward a stable future.