Partner Brett D. Lieberman Serves as Panelist for CLE Program on Insolvency Options for Florida Businesses
Partner and Miami bankruptcy lawyer Brett D. Lieberman recently served as a panelist for a continuing legal education (CLE) program presented by the Florida Bar’s Business Law Section. The CLE program, titled Insolvency Options for Florida Businesses, provided members of the Business Law Section with insight into the bankruptcy and receivership processes, as well as various alternatives to bankruptcy and receivership for struggling businesses in Florida.
Bankruptcy, Receivership and Their Alternatives
When a business is struggling financially, it is critical that the business’s owners make informed and strategic decisions about their next steps. In many cases, filing for bankruptcy under Chapter 11 is the right option. Pursuing reorganization under Chapter 11 provides the opportunity to continue operating while the business’s creditors are prevented from pursuing collection (subject to only limited exceptions); and, at the end of the process, the business emerges with a manageable debt load that allows its owners to focus on the future instead of being hampered by the past.
Receivership can provide a path forward in some cases as well. With a receivership, a third party (the “receiver”) temporarily takes control of the business’s assets and uses them to satisfy one or more of the business’s secured debts. Although receivership will often be a precursor to bankruptcy, it can also be used to stave off the need for reorganizing under Chapter 11 (or liquidating under Chapter 7) in some cases.
While bankruptcy and receivership are two options, they are not the only options that are available. There are also several alternatives to bankruptcy and receivership that can prove both viable and cost-effective in many cases. Some examples of these alternatives are:
- Assignment for the benefit of creditors
- Forbearance agreements
- Informal debt restructuring
- Internal corporate restructuring
- Renegotiating contracts with lenders, vendors and customers
Ultimately, the best path forward for any business will depend on the specific circumstances at hand. Once again, informed and strategic decision-making is critical, and business owners will want to discuss all of their options with an experienced Miami bankruptcy lawyer. By having this discussion sooner rather than later, business owners can ensure that all of their options remain on the table, and they can efficiently target a resolution that allows for continued pursuit of their long-term objectives.
About Partner and Miami Bankruptcy Lawyer Brett D. Lieberman
Miami bankruptcy lawyer Brett D. Lieberman is a Partner at Edelboim Lieberman. He represents financially distressed businesses of all sizes in Chapter 11 bankruptcy proceedings and related legal matters. He has been recognized as a ‘Rising Star’ by Super Lawyers and an ‘Up and Comer’ by Florida Trend Magazine, and he has earned the prestigious AV Preeminent® peer rating from Martindale-Hubbell.
Request a Free and Confidential Consultation at Edelboim Lieberman
Do you have questions about reorganizing your company’s debts under Chapter 11 or pursuing an alternative to a business bankruptcy? If so, we invite you to get in touch. To request a free and confidential consultation at Edelboim Lieberman, call 305-768-9909 or tell us how we can get in touch online today.
