Mr. McLaughlin has represented debtors, creditors, commercial landlords, trustees and secured creditors in varied Chapter 11, 13 and 7 cases in New Jersey. Mr. McLaughlin has also handled complex commercial litigation. One significant case was an action to set aside a fraudulent transfer of assets under the New Jersey Fraudulent Transfer Act. During trial, a large settlement recovery was obtained for a client. Mr. McLaughlin has been successful in collection of several substantial judgments over the course of his career. Mr. McLaughlin has represented secured lenders in complex Chapter 11 proceedings.
What Is The Difference Between Business Liquidation And Reorganization?
In a business liquidation, an entity files a Chapter 7 Bankruptcy Petition and turns over the control of their company to a Trustee who is a fiduciary for creditors. The Trustee then assists with every aspect of sale of any assets and pursuit of litigation to fund a distribution to the creditors through the Chapter 7 process. A business liquidation is known as a “walk away” while the business owners have a responsibility to and assist and cooperate with the trustee to provide needed support and financial information about the company’s affairs…Read More
What Are Some Benefits Of Filing A Business Bankruptcy?
The benefits to filing a business bankruptcy case would include an automatic stay from creditors proceeding to collect against debts owed by the business. The stay is imposed automatically upon the case filing. This allows a breathing spell to permit a Debtor to attempt to constructively analyze the entire debt picture of the company to see a negotiated plan of reorganization for the entity to address their debt in a uniform manner rather than an ad hoc approach…Read More
Will My Personal Assets Be Impacted By Filing A Business Bankruptcy?
The filing of a business case will generally not affect personal assets and property. However, it is common for individuals to have allowed secured parties to obtain liens on their homes or other assets. For instance, an operating capital loan of a business may be guaranteed by the owners of the company and also may have as additional collateral some personal assets. It depends on the facts and circumstances of each situation, but if a secured lender has no recourse against the individuals based upon their loan and no guarantee, then the business will be able to operate and the individual’s assets won’t be affected…Read More
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