Restructuring Debt Outside Bankruptcy Court

Sometimes a bankruptcy filing for your business isn’t the best choice. The bankruptcy process can be long, arduous, and potentially expensive. Debt management solutions can be found outside the bankruptcy courts and generally involve negotiation between the business owner and those parties who hold the debt.

Navigating today’s economy is a challenge, but you can put your business in a stronger cash flow position by negotiating a debt restructuring plan. A thorough analysis of your business’ financial situation is imperative prior to the development of a debt restructuring plan. Some of the items to consider include:

• What is the total amount of debt owed?
• How many types of debt exist and to what extent?
• Is there an unusual timeframe (urgency) associated with any particular debt?

In addition to understanding your business’ current financial situation, it’s equally important to consider the road that led to the problems. Speaking with a knowledgeable business bankruptcy attorney can illuminate detrimental legal or fiscal matters that can be avoided in the future.  Why live and learn when you can seek out expert advice to guide you through a restructuring of debt and beyond?

A qualified Los Angeles business bankruptcy attorney can advise you of possible debt solutions for your business. Every situation is unique and should be assessed by a knowledgeable Los Angeles bankruptcy lawyer who can provide you with bankruptcy alternatives.

How Negotiating with Creditors Can Help

Creditors would prefer that a business owner not file for bankruptcy because they will likely recover less of the debt than in a private negotiation. Development of a debt relief program benefits both the business owner and the creditor. Such a program may involve a reduction in the interest rate, a change in payment plans, or even a reduction of the principal amount owed.

An experienced Los Angeles business bankruptcy attorney can protect your interest in the negotiation process while also allowing you to meet your debt obligation. Banks may be willing to waive accrued interest on your debt or consider a settlement for a significantly lower amount due.  Landlords may be willing to adjust lease terms or make other concessions to keep your tenancy.

Talk to an Experienced Los Angeles Business Bankruptcy Lawyer

Having debt is practical and necessary for many businesses, but when that debt begins to impact cash flow, expansion and long term planning, it is time to take a look at alternatives to managing the debt. There are many effective debt strategies to get your business back in the black. Scheduling a consultation with an experienced Los Angeles corporate bankruptcy attorney will allow you to choose the best plan for your situation.

Give us a call at 310-584-7702 or 866-572-2423 today for a free analysis and review of your business bankruptcy alternatives.