Know your full range of options before filing for bankruptcy

Before filing for bankruptcy, business owners should explore every available out-of-court option for dealing with the debt. Going to bankruptcy court can be costly, and it is important to get comprehensive legal advice before taking that step.

One of the first things you'll need to do is get an accurate valuation of your business. This will give you a picture of whether debt reorganization is likely to return your business to profitability. In one of our recent posts, we discussed a number of debt reorganization options.


If you choose to file for Chapter 11 bankruptcy, then you'll need to develop a bankruptcy plan to present to the court. You'll also need to negotiate with creditors to establish a workable repayment plan.

An important thing to understand is that the steps you take during bankruptcy will have to be approved by the court. If you plan to use cash from the sale of business assets in order to keep the business operating during bankruptcy, the court will have to be assured that the sale will not hurt your secured creditors. Understand, too, that the court is not likely to approve a plan that doesn't offer proof of financial backing while the plan is executed.

Shulman, Hodges & Bastian LLP started out as a bankruptcy boutique law firm. Our attorneys know bankruptcy inside and out. In addition to representing individuals and businesses facing insolvency, we represent creditors and creditor committees, including lending institutions such as private banks, national and community banks, and private equity firms. We also represent and advise bankruptcy trustees.

If you have questions about insolvency-related matters, then seek advice from an experienced bankruptcy lawyer.

No Comments

Leave a comment
Comment Information
  • NBLSC Board Certified Lawyer Rated By Super Lawyers | Ryan P. Durham Rated By Super Lawyers | Ben Boston
  • Tennessee Association For Justice | Member 2015-2016 American Association For Premier DUI Attorneys The National Trial Lawyers | Top 100 Trial Lawyers
  • American Institute of Family Law Attorneys | 10 best 2015 American Institute of Personal Injury attorneys | 10 best 2016 AV preeminent |  Jeffery Broker

Schedule a Consultation Today

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Shulman Bastian LLP | Full Service. Business. Lawyers.

100 Spectrum Center Drive
Suite 600
Irvine, CA 92618

Map & Directions

3550 Vine Street
Suite 210
Riverside, CA 92507

Map & Directions