California Business Insolvency Attorney

Business insolvency refers to when a company cannot pay the final requirements needed to satisfy its debts. This includes, but is not limited to, having too little money to pay off their debts, being unable to sell assets to cover the debt, or needing access to the financing required to pay off debts. Facing insolvency can be a terrifying circumstance for any business owner who has strived to keep their company afloat. When business insolvency occurs, the company may be forced to file for bankruptcy, which can have many negative consequences. Connecting with a business insolvency attorney is the only effective strategy to determine the best course of action and protect the owner’s interests.

What Are the Consequences of Business Insolvency?

Several significant consequences can be associated with business insolvency, making it a very serious situation:

  • A loss of control over the company. When a company is facing insolvency, it may no longer have control over its day-to-day operations. This can be highly frustrating to business owners who have worked hard to build their company and don’t want to see it fail.
  • A loss of assets. One of the most significant consequences of business insolvency is the loss of assets. This can include the loss of the company’s property, equipment, or even inventory. The loss of assets can be devastating for business owners who have invested much time and money into their companies.
  • A negative impact on credit. Another big consequence of business insolvency is the impact it can have on credit. This can make it very difficult for the company to get financing in the future, which can hamper growth.
  • The impact on employees. One of the most heartbreaking consequences of business insolvency is the impact it can have on employees. Insolvency can lead to layoffs, pay cuts, or even the loss of benefits. This can be extremely difficult for employees struggling to make ends meet.
  • The impact on suppliers. Another group that can be negatively affected by business insolvency is suppliers. A supplier can be affected by contract loss or not getting paid for the goods and services they provide. This can be extremely difficult for suppliers who rely on the company for their livelihood.
  • The impact on the owner. The company’s owner is also likely to be negatively affected by business insolvency, such as with the loss of personal assets, the loss of income, and a negative impact on credit. All of these components can be very difficult for business owners to deal with when they are already struggling with the situation at hand.

What Are the Causes of Business Insolvency?

There can be many different causes of business insolvency, such as:

  • Poor financial management. One of the most common causes of business insolvency is poor financial management. This can include overspending, not keeping track of expenses, and not having a good handle on the company’s finances. Often, business leaders who are in the thick of running the company each day can lose sight of the big picture and make poor financial decisions that can lead to insolvency. Other times, it has been a snowball effect where one poor financial decision leads to another and another until the company is in a dire situation.
  • Relying on too much debt. Another common cause of business insolvency is reliance on too much debt, such as using credit cards to finance the company, taking out loans, and using lines of credit. Debt can be extremely dangerous for companies because it can put them in a situation where they cannot meet their financial obligations. This can quickly lead to insolvency.
  • Not enough cash flow. Not having enough cash flow can also lead to business insolvency. A lack of cash flow can be caused by factors such as not having enough revenue, having too many expenses, or not being able to collect on receivables. It can be a very difficult situation for companies because they may not be able to pay their bills and meet their financial obligations.

How Can a Business Insolvency Attorney Help?

If you are facing business insolvency, you don’t want to try and navigate it on your own. It is crucial to seek the help of a qualified attorney. An experienced business insolvency attorney can help you:

  • Understand your options. One of the most important things an attorney can do is help you understand your options, like negotiating with creditors, filing for bankruptcy, or liquidating assets. An attorney can take a deep dive into the entire history of your company and work with you to come up with a solution that does the least damage to your business and your personal finances.
  • Create a plan. Once you have decided on a course of action, your attorney can help you create a plan. This can include negotiating with creditors, drawing up paperwork, and filing for bankruptcy. They work with you to make sure everything is done correctly and that your rights are protected.
  • Keep a close eye on the process. Once you have filed for bankruptcy or begun to negotiate with creditors, it is important to have someone keeping a close eye on the process. This is where an experienced attorney can be extremely helpful. The other party can often take advantage of the situation if you do not have someone looking out for your best interests.
  • Challenge any fraudulent claims. One of the most difficult things about business insolvency is dealing with fraudulent claims, such as fraudulent debts, false liens, or forged documents. An experienced attorney can challenge these claims and help you protect your assets from being taken advantage of.
  • Maximize your chances of success. An experienced attorney knows the ins and outs of business insolvency law. They can navigate the process and help you maximize your chances of success. Representing yourself in a business insolvency can be extremely difficult and is highly likely to result in your company being taken advantage of. Having an attorney on your side can give you the best chance of coming out on top.
If you’re looking for a reputable attorney with a solid reputation in both bankruptcy and insolvency, then you’re home. Coggins Law Office is a trusted Tax Attorney in Roseville, California, that you can count on for Tax Law and IRS audit solutions.

I work directly with the federal and state tax authorities to identify real tax problems and create real solutions. Throughout my years in business, I’ve worked with companies and individuals across a broad insolvency spectrum. I represent creditors, debtors, trustees, investors, or creditors’ committees.

Besides the wide range of tax legal services that you can access at Coggins Law Office, I also work with a network of local accounting firms. Jointly, we can ensure you access comprehensive representation for any tax-related issue.

Coggins Law Office prides itself on establishing effective, futuristic solutions to troubled companies and credit whether or not the bankruptcy has been filed. Even if you’re faced with a complicated Chapter 11 case, I can help you acquire any valuable asset out of bankruptcy and develop practical remedies for creditors.

My spectrum of cases covers three main categories:

  • Insolvency law for individuals – Coggins Law Office can help you handle negotiations with creditors so you can establish a working payment plan whether it’s through an individual voluntary arrangement or on an informal basis.
  • Insolvency law for business – I work with businesses of all nature and sizes across industries offering advice and clarity on formal insolvency procedures. Whether your company faces creditor pressure, a winding-up petition, or you just intend to restructure, you can count on my tailored solutions.
  • Insolvency law for practitioners – If you’re an insolvency practitioner specialized in commercial or individual insolvency cases; you can find the necessary guidance and solutions at Coggins Law Office. I work with insolvency practitioners issuing bankruptcy petitions, winding up petitions, and administration orders.

Main areas of focus at Coggins Law Office

What distinguishes Coggins Law Office is the full spectrum of insolvency, restructuring, and bankruptcy legal services. I’m well known to the experts, counsel, and courts in the tightly-woven legal community in Roseville and Sacramento Areas.

My areas of focus include:

Pre-Petition Planning

Coggins Law office emphasizes pre-bankruptcy strategy and planning. Through my wealth of experience in such matters, I’ve been able to assist lenders and businesses settle their issues. As such, you’ll avoid unnecessary, costly foreclosure, litigation, or bankruptcy.

Out of Court Workouts

Out of court agreements can be the best remedy for creditors, borrowers, and guarantors. At Coggins Law office, you can get the best legal guidance to restructure investments, commercial loans, and real estate loans out of court.

I have vast experience in negotiating and preparing Forbearance Agreements and Restructured Credit agreements. My clientele and associates comprise asset managers, credit officers, and special asset departments in leading banks in the Roseville and Sacramento communities.

Distressed Real Estate Loan-Restructuring

I have a history of success in helping clients handle their distressed real estate loans. Coggins Law Office understands the right steps to act fast and preserve assets. I can also help you establish a winning approach and resolve cases, whether by forbearance, negotiation, receivership, litigation, foreclosure, or bankruptcy.

Maximization of Relief

Coggins Law Office understands the ropes, and I’ve always achieved the best results to meet my clients’ objectives. I can aptly guide you in creating reorganization confirmed plans and negotiating for the best treatment.

My extensive experience includes representing clients who seek the following:

  • Selling or buying assets in a bankruptcy court
  • Licensing and selling intellectual property
  • Executory contracts
  • Assessing bankruptcy implication in all transactions
  • Automatic stay relief
  • Negotiation, preparation, and confirmation of Plans of Reorganization
  • Actions on fraudulent transfer and preference actions
Mediation and Arbitration Services

Most practitioners fail to understand that Bankruptcy Rule 9019(c) gives room for arbitration of contested matters if both parties agree. This is an underutilized provision, but Coggins Law Office offers an even better, more efficient resolution approach than the courts.

IP Protection in Insolvency

I can help licensees, investors, debtors, and lenders acquire, protect, and sell essential and valuable IP interests.

Financial Fraud, Embezzlement, And Money Laundering

I have all it takes to get to the bottom of cases that involve fraud against partners and lenders, Ponzi schemes, embezzlement, money laundering, and other matters requiring detailed analysis and forensic investigation.

I can guide you when planning and conducting forensic examinations and investigations to reveal complex fund diversions and fraud schemes.

Reach Out

If you need legal guidance in any of the above cases relating to business insolvency, then you know who to talk to. Contact Coggins Law Office today for the best legal advice.