Bankruptcy & Reorganization
Assignments for the Benefit of Creditors
Jenkins Law represent businesses in executing a cost effective, orderly liquidation of business assets under state law alternatives to federal bankruptcy known as Assignments for the Benefit of Creditors (ABC).
In an ABC, the debtor, known as the assignor, makes a voluntary transfer of
all of its assets to a trustee, known as an assignee. The assignee places the assignor’s assets in trust for liquidating the assets and distributing the proceeds to creditors on a pro rata basis.
Chapter 7 Individual and Business Liquidations
Jenkins Law represents businesses and individuals in Chapter 7, which provides debtors with a fresh start for individuals by discharging most debts existing at the Chapter 7 petition date and by permitting any debtor to retain limited amounts of certain assets. Jenkins Law guides individuals and businesses through the myriad complexities of the federal bankruptcy process.
Chapter 11 Business Reorganization
When a financially distressed business can continue operations but needs a reorganization, Jenkins Law can shepherd the business through a Chapter 11 bankruptcy proceeding. During the reorganization, Jenkins Law assists companies in negotiating and preparing reorganization plans, negotiating DIP and exit financing, the sale of debtor assets, attendant bankruptcy litigation and other matters.
Chapter 13 Individual Debt Adjustment
Not all individual debtors qualify for a Chapter 7 discharge in bankruptcy. For those individuals (particularly high-net-worth individuals or those without significant debt-to-income ratios), a Chapter 13 bankruptcy may be appropriate.
Under a Chapter 13, Chapter 13 is intended primarily for consumer debtors who want to devote some of their post-petition earnings to pay all or a percentage of their prepetition debts over a period of three to five years.