Bankruptcy Alternatives

At Robleto Kuruce, we take a holistic view of our clients’ financial condition and, while we do a considerable amount of work in bankruptcy court, we recognize that seeking protection under the United States Bankruptcy Code is an extraordinary measure that is not appropriate in all cases. We make certain that our clients understand the potential impact of a bankruptcy filing long before seeking a petition for relief and we help them to consider non-bankruptcy solutions to financial distress. Often bankruptcy is the best path forward for our clients but, when a bankruptcy case would not produce optimal results, the experienced insolvency professionals at Robleto Kuruce are prepared with other creative solutions.

For commercial clients, a chapter 11 bankruptcy case can have a substantial impact on the day-to-day operations of the business. Particularly in the early stages of a case, executives often find that those cases demand their attention for several hours each day. Beyond that, a business enterprise must carefully control the optics of a reorganizational bankruptcy. Customers, vendors and business partners often need assurances that the business will remain a going concern into the future. A chapter 11 bankruptcy filing does provide a debtor with breathing room and permits a certain degree of flexibility that may not be otherwise available.

In many cases, both creditors and debtors may benefit from an agreement outside of bankruptcy. Creditors and other interested parties can be made to understand the position of a financially distressed individual or business as well as what a bankruptcy filing could do to their own claims. Debt workouts come in many forms and are the product of honest and effective negotiation. In some instances, extended payment terms, reduced interest rates, increased access to credit or reductions of indebtedness can mean the difference between life and death for a business. Your best opportunity for a successful debt workout may depend upon selecting effective legal counsel that can make your case to creditors.

When the problem is just about resolving debts that impose a financial hardship, debt settlement might represent an effective alternative to the filing of a bankruptcy case. Particularly after creditors have lost faith in ever being paid, approaching them with an offer to pay something less than the full amount in a lump sum or over a period of time may generate the most favorable result for all concerned. An effective debt settlement lawyer will persuasively make the case that any alternative to settlement will result in creditors being paid less, incurring greater collection costs and further delay.

In many cases lenders will modify credit agreements with their borrowers in order to restore defaulted loans to performing status. In the consumer mortgage context, loss mitigation is a fact of life. Programs like the Home Affordable Modification Program and the Home Affordable Refinance Program may provide an avenue to modify your residential mortgage and avoid foreclosure. Robleto Kuruce has the necessary experience to guide you through the loan modification process.

In certain cases, lenders and other creditors may forgive indebtedness. Particularly when there is a severe hardship such as a medical disability, many creditors have debt forgiveness guidelines in place. Debt forgiveness may be available to alleviate financial hardship for a debtor and avoid the need for creditors to continue hopeless collection efforts.