Bankruptcy Attorney in Manhattan, NY 

Debtor Representation in Bankruptcy Cases

Chapter 7: Liquidation

Chapter 7 bankruptcy, also known as liquidation, is a process in which a business's non-exempt assets are sold to repay creditors. This type of bankruptcy is typically pursued by businesses that are unable to continue operations and have no viable path to financial recovery. To be eligible for Chapter 7 bankruptcy, a business must demonstrate that it cannot pay its debts as they become due and that reorganization under Chapter 11 is not feasible.

Upon filing for Chapter 7, a bankruptcy trustee is appointed to oversee the liquidation process. The trustee will evaluate the business's assets, sell them, and distribute the proceeds to creditors according to a specific order of priority established by bankruptcy law. Once the process is complete, any remaining unpaid debts are usually discharged, and the business ceases operations.

Chapter 11: Reorganization

Chapter 11 bankruptcy, commonly referred to as reorganization, allows financially distressed businesses to restructure their debts while continuing operations. This type of bankruptcy is suitable for businesses that have a viable potential for financial recovery but require debt relief and restructuring to regain stability. Both small and large businesses can file for Chapter 11 bankruptcy, although the process may vary slightly depending on the size and complexity of the company.

During Chapter 11 bankruptcy, the debtor (the business) typically remains in control of its operations as a "debtor in possession" and works with creditors and the bankruptcy court to develop a reorganization plan. This plan outlines how the business will repay its debts over time, modify contracts, and implement operational changes to improve its financial outlook. The reorganization plan must be approved by the court and a majority of the creditors before it can be implemented. Once the plan is confirmed, the debtor can continue operations under the new terms, and the restructured debts are legally binding.

Bankruptcy Litigation Services We Offer

At KI Legal, our experienced attorneys offer comprehensive bankruptcy and restructuring services aimed at protecting your interests and helping you navigate the complexities of the bankruptcy process. We understand that every case is unique, which is why we are committed to providing personalized legal solutions tailored to your specific needs. 

Our services cater to a wide range of bankruptcy-related disputes, including:

• Adversary proceedings
• Preference and fraudulent transfer actions
• Automatic stay violations
• Dischargeability disputes
• Plan confirmation disputes

Adversary Proceedings and Preference Actions

Our team has extensive experience in managing adversary proceedings, which are separate lawsuits filed within a bankruptcy case. These may involve disputes over the validity of liens, the sale of assets, or the determination of non-dischargeable debts. We are also adept at handling preference and fraudulent transfer actions. Preference actions occur when a debtor makes payments or transfers to a creditor within a specific period before filing for bankruptcy, giving that creditor an unfair advantage over others. Fraudulent transfer actions involve transfers made by the debtor with the intent to hinder, delay, or defraud creditors.

Automatic Stay Violations and Dischargeability Disputes

When a debtor files for bankruptcy, an automatic stay is put into place, temporarily halting all collection actions against the debtor. At KI Legal, our attorneys are skilled in identifying and addressing automatic stay violations, ensuring that our clients receive the full protection they are entitled to under the law. We also handle dischargeability disputes, which arise when a creditor challenges the debtor's ability to discharge a particular debt. Our team works diligently to advocate for our client's best interests in these situations.

Plan Confirmation Disputes

During Chapter 11 or Chapter 13 bankruptcy cases, plan confirmation disputes may occur when creditors object to the proposed repayment or reorganization plan. Our team at KI Legal is adept at navigating these complex proceedings, ensuring that the proposed plan is fair and feasible. We work closely with our clients to develop a thorough understanding of their financial situation and objectives, allowing us to effectively represent their interests throughout the bankruptcy litigation process.