Let us do a global review of your business situation and highlight your options for taking advantage of Federal proceedings, PPP Loans, restructuring and debt forgiveness. Keep in mind, that if your successful business is in trouble, due solely to the catastrophic effects of the COVID-19 government closure, it is not your fault. The Law Office of Malachowski and Associates has fourteen years of experience in Federal and State Courts and are here to fight for you; to get you the best results possible in Federal protection for your business situation.
A thorough review of your business’ arrearages, payroll, taxes, leases, mortgages and your accounts payable and receivable will allow the Law Office of Malachowski and Associates to assess your current business situation and propose options on the State and Federal level.
How do I file for Bankruptcy? What Type of Bankruptcy should I file? Can I keep my business if I file Bankruptcy? How do I protect my home if my business goes bankrupt?
Chapter 11 Bankruptcy in the Time of COVID-19:
Is your business out of cash and have loans coming due that you are unable to pay? Are you unable to meet payroll and behind on rent? Are you behind on taxes and being hounded by collectors? Have tax liens been filed against your business? Are you being sued by your creditors?
Small and medium-sized businesses as debtors need help in reorganization cases in financial and corporate restructuring under chapter 11 of the Bankruptcy Code. This Code includes “pre-negotiated” and “prepackaged” reorganization plans. Besides plan development and negotiation, bankruptcy motion and litigation practice, debtors need help with sales of their assets in bankruptcy on a going-concern basis in order to preserve enterprise value and maximize recoveries for creditors. In the alternative, medium-sized businesses may need out-of-court workouts.
If you or your company have been sued by a creditor, trustee, liquidating trustee or debtor in possession (DIP) in: State Court, federal court, bankruptcy court, or an arbitration proceeding, litigation and mediation in bankruptcy court, including preference actions seeking to avoid preferential transfers, and avoidance actions seeking to avoid fraudulent transfers, the Law Office of Malachowski and Associates can assist you and your business.
The Law Office of Malachowski and Associates
We will undertake civil litigation matters based on alternative fee arrangements, where appropriate, including blended hourly fee and contingency fee arrangements.
We are a Local Company based in the San Francisco Bay Area. We are here to assist you during this difficult decision and transition in your life. Many people had a perfectly good business until the COVID-19 closure. If you are a victim of the COVID-19 government closure, and your business is in trouble due to circumstances beyond your control, and now must avail yourself to the protection of Federal Bankruptcy law, remember that you did nothing wrong and it is not your fault. We are here to help you.
~ Bar Memberships ~
Bar of the Supreme Court of the United States 05/03/21– present
Bar of the 9th Circuit Court of Appeals 06/07/06 – present
Bar of the Supreme Court of California 06/01/06 – present
3145 Molinaro St, Santa Clara, CA 95054
Telephone: 650 200 7393
870 Market Street, Suite 1048, San Francisco, CA 94102
If the catastrophe of the COVID-19 shut down has forced you to avail yourself to Chapter 11 Bankruptcy relief, you are not alone and it is not your fault.
Civil Litigation Defense.
If you, your company or small business have been sued in: U.S. District Court for the Northern District for California, California Supreme Court in San Francisco County, Santa Clara County, San Mateo County, Marin County, Sonoma County, Mendocino County, Humboldt County, Del Norte County, Lake County, Napa County, Santa Cruz County, San Benito County, Monterey County; the Civil Litigation Attorneys at Malachowski and Associates can defend you in the lawsuit.
Malachowski and Associates are experienced bankruptcy litigators. We represent plaintiffs (debtors, trustees, and other parties in interest) and defendants in adversary proceedings in the U.S. Bankruptcy Court, including preference avoidance and fraudulent transfer avoidance actions under the Bankruptcy Code.
How Does Chapter 11 Bankruptcy Work?
When you avail yourself to Chapter 11, you can keep your business while much of your business debt is forgiven.
When to Begin the Process?
The sooner you begin the Chapter 11 process, the better you can salvage what can be saved, and you can shed the mountain of debt that is weighing you down.
Mark discusses COVID-19 and Chapter 11 on Dead On TV…
Subchapter V is a new bankruptcy law that may be the best option for your small business during these troubled times.
In February, 2020, SBRA, the Small Business Reorganization Act of 2019, or “Subchapter V” went into effect. Subchapter V provides for a more compact and less burdensome version of Chapter 11 Reorganizations for small business corporate and individual debtors…
SBRA simplifies the bankruptcy process by increasing efficiency, lowering costs, and easing the plan confirmation process. On balance, SBRA helps if a small business is at a cross roads as to whether the business continues, or has to close one’s doors and liquidate one’s assets.
SBRA was designed to address the concerns that Chapter 11 had a high ratio of loss of ownership, a high cost of filing, protracted schedules, exhaustive procedural and reporting burdens, creditor committee costs, and the tactical fighting that took place driven by confirmation of the Plan pursuant Section 11229 (a) (10).
Under a Chapter 11 filers often had to convert their Chapter 11 Petition to a Chapter 7 Liquidation Plan. The SBRA statute is designed for the small business debtor who must be a person or entity engaged in commercial or business activity with aggregate non-contingent liquidated secured and unsecured debts of $2,725,625 or less, excluding debt owed to affiliates or insiders. However, single asset real estate entities are generally excluded from SBRA. Note that in October 2020 the Cares Act modified the SBRA Subchapter V debt limit to be $7.5 million, but that higher debt limit is scheduled to expire in March of 2020.
Subchapter V has no creditor committee, and thus creditor committee hold ups, which can often impede a Chapter 11 Plan. Also, there is no absolute priority rule in Subchapter V. Moreover, other than the initial filing fee, fees are essentially eliminated, making the SBRA process much less expensive to the petitioner than a Chapter 11.
Under Subchapter V, if the creditors will not agree on the petitioner’s proposed Plan, an application can be made to the Bankruptcy Court Judge to order that the Plan be approved (referred to as a “cram down.”) The success of these proposed Plans need only be more attractive to the unsecured creditors than would a conversion to a Chapter 7 liquidation Plan, often a low threshold.
To evaluate your rights under Subchapter V, the Law Office of Malachowski and Associates will need to review your balance sheet, statement of operations, cash flow statement, income tax return and other documents as needed.
The SBRA(Small Business Reorganization Act) Has a Separate Disclosure Exemption. Unless the court for cause orders otherwise, section 1125 does not apply to a case under Subchapter V. See § 1181(b). The SBRA simply requires that “[a] plan filed under this subchapter—(1) shall include—(A) a brief history of the business operations of the debtor; (B) a liquidation analysis; and (C) projections with respect to the ability of the debtor to make payments under the proposed plan of reorganization.” See § 1190. The Committee Note to Official Form 425, the Plan of Reorganization for Small Business Under Chapter 11, states that “there will generally not be a disclosure statement in subchapter V cases…”
AS REPORTED IN THE FINANCIAL TIMES…
Investors On Bankrupt Company Buying Spree
Hertz filed for Chapter 11 Bankruptcy protection on May 20, 2020. Soon after, Hertz’s shares fell eighty per cent (80%). But as of today, June 10, 2020, Hertz’s shares have gained more than eight hundred per cent (800 %), as Retail Investors shrugged off the advice of professional fund managers, who had recommended a sell. Source – Financial Times, Page 1, Wednesday June 10, 2020.