Bankruptcy Litigation in Lapeer

Bankruptcy litigation in Michigan is often initiated by business creditors against a company in distress and unable to pay on debts owed. Effectively, they force the debtor company into an involuntary bankruptcy proceeding. In Lapeer, Pontiac or elsewhere in Michigan, that is an immediate indicator that you need to work with an attorney who offers bankruptcy services.

But bankruptcy litigation anywhere in Michigan can take place under a number of circumstances. Even under the protection of Chapter 11 or Chapter 13, a company may face challenges in court:

• When a creditor disputes asset distribution. The court will try to equitably distribute business assets in a liquidation bankruptcy, but some creditors may disagree with the allocation basis.
• When creditors dispute company distributions prior to the bankruptcy filing. If in the days or weeks preceding the bankruptcy declaration the owner or officers of a company allow themselves large draws or bonuses from company assets, creditors can challenge that in the bankruptcy court.
• When litigation itself leads to the bankruptcy. This is when a soured business relationship, or a plaintiff suing for injuries caused by a product, leads to a court-ordered settlement that is beyond the capability of the business to cover.

Managing litigation before bankruptcy becomes necessary

Even in good times, a lot can happen to threaten the solvency of a business. Co-owners or business heirs may be in dispute over any number of factors. Vendors or customers might sue for breach of contract. Employees might violate terms of their employment, or a manager may engage in illegal employee practices—such as sexual harassment or discrimination—that result in expensive judgments. Poor cash flow and other business reversals are frequent causes of insolvency.

Your business attorney can often prevent these situations from becoming a significant business and legal problem. Well-written contracts and quality legal guidance provided to owners, managers and employees of companies might forestall difficult legal and financial problems in advance.

This is no difference in Pontiac, Lapeer or elsewhere in the state of Michigan. But when any such legal problems arise unexpectedly, you are wise to contact an attorney who offers bankruptcy services, including bankruptcy litigation counsel. With a qualified, experienced lawyer who has worked with companies in distress, you can mount an effective fight to retain as much ownership of your business as is possible.

When you see no way out, contact the Law Offices of David W. Brown, PLLC
Bankruptcy does not have to keep you in the dark. With thousands of cases successfully won, the consumer bankruptcy litigators at the Law Offices of David W. Brown, PLLC show you the light at the end of the tunnel. We serve clients in Pontiac and Lapeer. For a free consultation, contact us at (810) 356-0143 today.