Colorado Attorney Outlines Bankruptcy Alternatives

Not every creditor problem requires bankruptcy for a solution. In some cases, an individual or business will, for example, have a limited number of creditors and could pay back its debts if payment deferral or stretch-out terms can be negotiated. Jon B. Clarke can help in this situation, also called a workout or out-of-court debt settlement.

At the Law Office of Jon B. Clarke, P.C, we may talk to your creditors one-on-one to negotiate more manageable payment terms. Many creditors would prefer receiving a guaranteed amount of money now instead of forcing a bankruptcy filing and having to wait possibly years before seeing potentially even less.

Bankruptcy Alternatives

For over 35 years, lawyer Jon B. Clarke has negotiated with clients' creditors to develop effective payment plans. Creditors seek assurance that debtors will endeavor to avoid filing for bankruptcy while paying them back. If the debtor has unprotected assets or the business is starting to show profit but just needs more time, the workout can give the debtor the break needed to continue in business. Frequently, the subtle threat inherent in retaining an experienced Chapter 11 attorney gives the debtor badly-needed credibility and clout in the workout negotiations.

Halting Business Operations

Mr. Clarke may advise management to close down the business without bankrupting it. This is applicable where bank loans, tax liens, equipment leases, etc. fully encumber all the business assets such that there's nothing for a Chapter 7 trustee to liquidate. If operating the business will increase the likelihood of a missed payroll, nonpayment of payroll or sales taxes, or improper utilization of customer deposits, the owners will likely be advised to cease operations.

This normally results in stress for the owners as lenders, lessors, and trade creditors seek to hold them personally liable for the business debts. We can communicate details about the shutdown to creditors and assert the noncollectability of unsecured debts. Attorney Clarke can also invite negotiation for settlement of verifiable personal guaranty claims against the officers, directors, and shareholders. Part of our work includes counseling the failed business owners on scenarios and strategies for protection of their personal assets.

Contact Us Today

Mr. Clarke and his support staff can effectively meet your legal needs.

For more background information, reference our law firm's web resources. BankruptcyAction.com and Findlaw.com also provide invaluable details about filing for bankruptcy. To help us get started, please fill out our law firm's online BCD form.