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Serious financial situations often bring about overwhelming feelings and a sense of despair overlooked in day-to-day life. Suppose you have found yourself in need of assistance in your financial situation. In that case, it is time to call a specialized restructuring attorney to help you find a solution that not only helps relieve at least some of the pressure you feel while simultaneously ensuring that the creditor you owe to is satisfied with the status of your debt. In the end, restructuring is meant to help find a compromise that works for all parties involved while retaining the most benefits for the client. To join countless other satisfied clients and begin the process of rediscovering financial freedom, a call to Michael McLaughlin, LLC, a Debt Reconstruction and Consolidation Attorney, is an excellent place to start.

What is the Process of Restructuring?

Terms surrounding bankruptcy can often be confusing and lead to a sense of apathy and hopelessness in potential clients who face the prospect of bankruptcy if they are unable to find the assistance they need. However, with the help of the right reconstruction attorney in Somerville, NJ, the process can be demystified and understood more efficiently and effectively.

By enlisting the services of Michael McLaughlin, you also ensure you will be made an active decision-maker in your debt reconstruction process and will be along for the ride through every stage. For example, to restructure debt, a debtor must be willing to create, present, and conform to a plan of restructuring approved by the creditor. This means that the creditor will typically call for a business or corporate reorganization, especially in the business sphere.

Since this process can be so tricky and creditors are notoriously challenging to work with on a humanitarian level, involving an experienced professional is often the right choice in many situations. With the help of attorney Michael McLaughlin, you can rest assured knowing that you have the help of a proven expert on your side.

This is important because one of the most important roles for a debt reconstruction attorney is keeping their clients out of the courtroom and out of litigation. However, this can only be achieved if the debtor and creditor can come to an agreement on how to make the structure of repayment manageable for the client while keeping the creditor satisfied with the timeline and process.

The primary goal is to avoid bankruptcy, saving the business from shuttering or laying off employees for businesses. While some changes will need to be made, and they may be incredibly challenging, it will be better for the business in the long run if they can stay out of the courtroom. If it does end up in court, it is often worse for both parties since they will retain very little control since it will be allocated to the court system.

However, if court restructuring or litigation becomes necessary, Michael McLaughlin is more than capable of defending your financial freedom and rights both inside the courtroom and out.

For any of your Debt Restructuring Services or Business Bankruptcy needs, there is no better Business Bankruptcy or Debt Consolidation and Reconstruction attorney in Somerville, NJ. With the right combination of experience, grit, and negotiating skills, you will find yourself equipped with the resources to find the best and most favorable resolution to your situation possible.

To begin exploring your option surrounding a possible restructuring or reconsolidation, the first step is contacting the office of Michael McLaughlin, LLC, to schedule an initial consultation. During this meeting, we will discuss your goals, current predicament, and the most logical and beneficial next steps to solve your debt issue.

A company or individual who files for bankruptcy protection under Title 11 of the Bankruptcy Code seeks to reorganize their financial affairs in the context of the Bankruptcy Code. 1129 of the United States Bankruptcy Code states 16 mandatory requirements that must be met by a proponent of a bankruptcy Chapter 11 plan to achieve confirmation of that plan. In essence, a Chapter 11 plan is a proposed contract with creditors modifying in certain respects pre-petition rights held by various creditors and parties in interest. The Court must make specific findings in analyzing any Chapter 11 plan that every one of the 16 requirements are satisfied. Two of the most significant confirmation requirements address the determination of the appropriate dollar amount and number of claims in each class of creditors that must vote in favor of a reorganization plan to meet the confirmation standards. An analysis of each separate class of claims is undertaken to reach a conclusion as to whether that class is designated as a “accepting class” under the plan. Each class of claims is examined to determine if two-thirds of the dollar amount of the claims within that class and 50% of the creditor vote in favor of the plan. An interesting aspect of Chapter 11 cases is that after receipt of a proposed disclosure statement and plan, creditors fail to vote and their non-action in some instances can result in a positive or negative influence on the determination of the status of that class as an accepting or rejecting class. For example, an unsecured creditor class consisting of claims of $1 million wherein only $500,000 worth of claims vote must in total have claims valued at $330,000 vote to accept that plan. If the class consists of ten voting creditors, then at least six of the ten or simple majority must also vote in favor of the plan.

One significant confirmation requirement is that each class of claims or interests must either accept the plan or not be impaired under the plan. Impairment is generally defined as some alteration of contractual rights. A plan proposing to pay unsecured creditors 100% would not impair that class. Under another section of 11 U.S.C. 1129, if there is at least one class of impaired claims under the plan, one of those impaired classes must vote to accept the plan and that determination is made without including the voting of any “insider” shareholder manager (relative of debtor) under the Bankruptcy Code. The court must also make findings at the confirmation hearing whether a plan is feasible and whether there might be need for further financial reorganization of the debtor or any successor to the debtor under the plan. All Chapter 11 plans must also be proposed in good faith and not by any means forbidden by law. This is just a general summary of some of the major confirmation requirements that make it challenging for a debtor to achieve confirmation of their plan proposed under Chapter 11 of the Bankruptcy Code.

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