Bankruptcy, Insolvency & Debt Recovery
A person not able to pay his or her debts as they become due is termed "insolvent" and this is the formal prerequisite to being declared bankrupt under law. The legal effect is to divert most of the debtor's assets and debts to the administration of a third person, sometimes called a " trustee in bankruptcy", from which outstanding debts are paid pro rata. Bankruptcy forces the debtor into a statutory period during which his or her commercial and financial affairs are administered under the strict supervision of the trustee. Bankruptcy usually involves the removal of several special legal rights such as the right to sit on a board of directors. The duration of "bankruptcy" status varies from state to state but it does have the benefit of erasing most debts even if they were not satisfied by the sale of the debtor's assets.
We assist clients through the many complex issues occurring as a result of insolvency or corporate reconstruction. Our lawyers aim to ensure the maximum number of options and achieve the optimum commercial outcome possible.