# Edelboim Lieberman > Explore the Elro Law blog for legal insights, helpful information, and updates on important legal topics and issues. ## Pages - [Franco Della Torre, Esq.](https://elpllc.law/professionals/franco-d-torre/): Franco Della Torre, Esq. Associate Franco Della Torre is an associate with the firm. Mr. Della Torre has a background... - [Craig Blinderman](https://elpllc.law/professionals/craig-blinderman/): Craig Blinderman Partner Craig Blinderman is an accomplished commercial trial lawyer with more than 34 years of experience practicing trial... - [Denissis Dias](https://elpllc.law/professionals/denissis-dias/): Denissis Dias Paralegal Prior to joining our firm, Denissis Dias gained over 13 years of customer service experience and 4... - [Alexander Lewitt](https://elpllc.law/professionals/alexander-lewitt/): Alexander Lewitt Associate Born and raised in South Florida, Alex’s practice focuses on representing companies, creditors, and other parties-in-interest in... - [Virginia Gonzalez](https://elpllc.law/professionals/virginia-gonzalez/): Virginia Gonzalez Paralegal Virginia Gonzalez has 16 years of higher education combined with professional experience as a litigation paralegal. Born... - [Tisha Bougouneau](https://elpllc.law/professionals/tisha-bougouneau/): Tisha Bougouneau Paralegal With over 27 years of dedicated legal expertise, Tisha is a seasoned litigation paralegal with extensive experience... - [Miami Real Estate Title Lawyer](https://elpllc.law/real-estate/title-lawyer/): Get Help from an Experienced Miami Real Estate Title Lawyer or Miami Title Insurance Attorney Today When buying or selling... - [Real Estate Closings and Title Issues](https://elpllc.law/land-use-real-estate-closings-title/): Miami Real Estate Closing Attorney Assistance with South Florida Real Estate Closings and Title Disputes When entering into a real... - [Real Estate Contracts](https://elpllc.law/real-estate/real-estate-contracts/): Discuss Your Deal with a Miami Real Estate Contract Lawyer Our firm represents parties to all types of real estate... - [Commercial Real Estate Litigation](https://elpllc.law/real-estate/commercial-real-estate-litigation/): Discuss Your Options with a Miami Commercial Real Estate Attorney Disputes involving commercial real estate can arise under a broad... - [Fraud Litigation](https://elpllc.law/commercial-litigation/fraud-litigation/): Miami Fraud Lawyer for Fraud Litigation Most businesses operate with integrity and legitimacy to protect their reputation and the company... - [Foreclosure](https://elpllc.law/real-estate/foreclosure/): Foreclosure Litigation Commercial foreclosures can be very complex cases. If you are involved in a commercial foreclosure case it is... - [Shareholder Disputes](https://elpllc.law/commercial-litigation/shareholder-disputes/): Discuss Your Options with an Experienced Miami Shareholder Dispute Attorney Disputes between shareholders can disrupt a company’s operations, and in... - [Escrow Disputes](https://elpllc.law/real-estate/escrow-disputes/): A Miami Escrow Dispute Attorney Can Help You Resolve Your Conflict While most real estate transactions successfully go to closing,... - [Partition Actions in Florida](https://elpllc.law/real-estate/partition-actions-in-florida/): Partition Actions in Florida What is a Partition Action? A partition action is a lawsuit between co-owners of real property... - [Breach of Fiduciary Duty](https://elpllc.law/commercial-litigation/fiduciary-duty/): Our Miami Breach of Fiduciary Duty Lawyer Understands What’s at Stake When a business or individual places their trust and... - [Negligence](https://elpllc.law/commercial-litigation/negligence/): Miami Negligence Lawyer Often when people think of lawsuits involving negligence, or carelessness, they think of when one person files... - [Partnership Disputes](https://elpllc.law/commercial-litigation/partnership-disputes/): Partnership Disputes Talk to a Miami Partnership Dispute Attorney in Confidence Disputes among business partners are common. As businesses grow... - [Corporate Disputes](https://elpllc.law/commercial-litigation/corporate-disputes/): Miami Corporate Disputes Lawyer For the most part, agreements and contracts between different parties in a business relationship go smoothly.... - [UCC Sale of Goods & Secured Transactions](https://elpllc.law/commercial-litigation/ucc-sale-of-goods-secured-transactions/): Miami UCC Sale of Goods & Secured Transactions Lawyer The Uniform Commercial Code (UCC) was established over 60 years ago... - [Debt Collection-Enforcement of Judgment](https://elpllc.law/commercial-litigation/debt-collection-enforcement-of-judgment/): Debt Collection/Enforcement of Judgment Lawyer Even after obtaining a judgment, the collection of a debt can sometimes remain challenging. Judgment... - [Real Estate](https://elpllc.law/real-estate/): Miami Real Estate Attorney for Litigation & More Regardless of the type of real estate dispute you are in, our... - [Testimonials](https://elpllc.law/testimonials/): Testimonials - [Breach of Contract](https://elpllc.law/commercial-litigation/breach-of-contract/): Miami Breach of Contract Lawyers Litigating Contract Disputes for Plaintiffs and Defendants in South Florida Every day, companies enter into... - [Commercial Litigation](https://elpllc.law/commercial-litigation/): Miami Commercial Litigation Attorneys Highly Skilled South Florida Business Litigation Law Firm Conflicts can arise in business among partners, between... - [Assignment for the Benefit of Creditors](https://elpllc.law/business-bankruptcy/assignment-for-the-benefit-of-creditors/): Assignment for the Benefit of Creditors Helping Florida business owners exit gracefully and move on with less time and hassle... - [Creditor Rights and Representation](https://elpllc.law/business-bankruptcy/creditor-representation/): Let a Miami Creditors’ Rights Attorney Represent You in All Bankruptcy Matters Businesses struggling with debt or that have become... - [Adversary Proceedings](https://elpllc.law/business-bankruptcy/adversary-proceedings/): Adversary Proceedings Miami Bankruptcy Litigation Attorneys Serving All of South Florida For the most part, bankruptcy operates like an administrative... - [Chapter 11](https://elpllc.law/business-bankruptcy/chapter-11/): Turn to a Miami Chapter 11 Bankruptcy Lawyer at Our Firm Helping Business Owners Succeed Throughout South Florida Our Miami... - [Chapter 7](https://elpllc.law/business-bankruptcy/chapter-7/): Miami Chapter 7 Bankruptcy Attorneys Helping South Florida Business Exit Gracefully and Make a Fresh Start Chapter 7 of the... - [Business Bankruptcy](https://elpllc.law/business-bankruptcy/): Let Our Miami Bankruptcy Litigation Attorney Help Your Business During Bankruptcy Proceedings Businesses that are struggling with debt or insolvency... - [Brett D. Lieberman](https://elpllc.law/professionals/brett-d-lieberman/): Brett D. Lieberman Partner Brett D Lieberman, Esq. is a goal-oriented attorney. Mr. Lieberman helps clients find solutions to sophisticated... - [Morgan B. Edelboim](https://elpllc.law/professionals/morgan-b-edelboim/): Morgan B. Edelboim Partner Highly experienced and recognized by the legal community for his skill and integrity, Morgan B. Edelboim... - [Professionals](https://elpllc.law/professionals/): Professionals - [Site Map](https://elpllc.law/site-map/) - [Disclaimer](https://elpllc.law/disclaimer/): Disclaimer The information and materials on this Web site are provided for general informational purposes only, and are not intended... - [Contact Us](https://elpllc.law/contact-us/) - [Blog](https://elpllc.law/blog/) - [Home](https://elpllc.law/): Experienced Miami Trial & Litigation Attorneys Serving Miami and All of Southern Florida Edelboim Lieberman is all about finding solutions... ## Posts - [What Is the Difference Between Chapter 7 and Chapter 11 Bankruptcy for Florida Businesses?](https://elpllc.law/blog/what-is-the-difference-between-chapter-7-and-chapter-11-bankruptcy-for-florida-businesses/): For distressed businesses, Chapter 7 and Chapter 11 are very different options that achieve very different goals. If you think... - [Business Debt Restructuring: Regaining Financial Stability Without Filing for Bankruptcy](https://elpllc.law/blog/business-debt-restructuring-regaining-financial-stability-without-filing-for-bankruptcy/): While filing for bankruptcy is an option for financially struggling businesses, it isn’t necessarily the only—or best—option. In many cases,... - [What Are the Pros and Cons of a Small Business Bankruptcy Under Subchapter V?](https://elpllc.law/blog/what-are-the-pros-and-cons-of-a-small-business-bankruptcy-under-subchapter-v/): For qualifying small businesses, filing for bankruptcy under Subchapter V can offer several advantages over a traditional Chapter 11 reorganization.... - [Attorneys Brett Lieberman and Alexander Lewitt Selected to Lead Financial Literacy Task Force](https://elpllc.law/blog/attorneys-brett-lieberman-and-alexander-lewitt-selected-to-lead-financial-literacy-task-force/): Edelboim Lieberman attorneys Brett Lieberman and Alexander Lewitt have been selected to lead the Financial Literacy Task Force of the... - [Partners Morgan Edelboim and Brett Lieberman Named 2026 Super Lawyers](https://elpllc.law/blog/partners-morgan-edelboim-and-brett-lieberman-named-2026-super-lawyers/): Partners Morgan Edelboim and Brett Lieberman have once again been selected as Super Lawyers in 2026. Mr. Edelboim has been... - [Creditors' Rights: Mistakes to Avoid When Preparing a Proof of Claim](https://elpllc.law/blog/creditors-rights-mistakes-to-avoid-when-preparing-a-proof-of-claim/): When a customer files for bankruptcy, filing a proof of claim can be a critical step for protecting creditors’ rights... - [Filing for Chapter 11 as a Startup: Key Considerations for Growing Companies](https://elpllc.law/blog/filing-for-chapter-11-as-a-startup-key-considerations-for-growing-companies/): Startups in financial distress may have several options for maintaining their viability. One potential option is to reorganize their debts... - [Preparing for Success in a Chapter 11 Bankruptcy](https://elpllc.law/blog/preparing-for-success-in-a-chapter-11-bankruptcy/): Preparing for success in a Chapter 11 bankruptcy starts with making informed decisions. By developing and executing a plan with... - [Resolving Partnership Disputes When Partners Have Equal Voting Rights](https://elpllc.law/blog/resolving-partnership-disputes-when-partners-have-equal-voting-rights/): When partners have equal voting rights, a contentious dispute can lead to an impasse with no clear path forward. In... - [Renegotiating and Restructuring During the Chapter 11 Process](https://elpllc.law/blog/renegotiating-and-restructuring-during-the-chapter-11-process/): Businesses that have filed for bankruptcy under Chapter 11 can leverage the process to renegotiate and restructure their debts informally... - [The Lifecycle of a Chapter 11 Bankruptcy Case](https://elpllc.law/blog/the-lifecycle-of-a-chapter-11-bankruptcy-case/): Reorganizing a business’s debts under Chapter 11 is a multi-stage process that requires an informed and strategic approach. The process... - [Understanding "Section 363 Sales" in Chapter 11 Bankruptcies](https://elpllc.law/blog/understanding-section-363-sales-in-chapter-11-bankruptcies/): As a general rule, companies that are seeking to reorganize their debts under Chapter 11 must continue to operate in... - [Landlord-Tenant Issues in Business Bankruptcies in South Florida](https://elpllc.law/blog/landlord-tenant-issues-in-business-bankruptcies-in-south-florida/): When a commercial landlord or tenant files for bankruptcy, both parties need to be careful to protect their rights during... - [10 Key Considerations When Targeting an Early Settlement in a Commercial Dispute](https://elpllc.law/blog/10-key-considerations-when-targeting-an-early-settlement-in-a-commercial-dispute/): When facing a commercial dispute, efficiently achieving a favorable resolution is generally the best-case outcome. Not only does this minimize... - [Business Divorce: Key Considerations for Bringing Your Partnership to an End](https://elpllc.law/blog/business-divorce-key-considerations-for-bringing-your-partnership-to-an-end/): When business partners decide to go their separate ways, making informed decisions about how to end their partnership is key... - [Rejecting Executory Contracts in a Chapter 11 Bankruptcy: Key Legal and Practical Considerations](https://elpllc.law/blog/rejecting-executory-contracts-in-a-chapter-11-bankruptcy-key-legal-and-practical-considerations/): While the primary focus of the Chapter 11 bankruptcy process is restructuring a company’s debts so that it can meet... - [When Is (and Isn't) Debtor-in-Possession Financing a Good Option?](https://elpllc.law/blog/when-is-and-isnt-debtor-in-possession-financing-a-good-option/): For companies with more debt than they can afford, reorganizing through the Chapter 11 bankruptcy process can help them regain... - [Defending Against Negligence Claims: Key Strategic Considerations for South Florida Businesses](https://elpllc.law/blog/defending-against-negligence-claims-key-strategic-considerations-for-south-florida-businesses/): Negligence claims can present substantial liability risks for South Florida businesses. This includes negligence claims filed by both individuals and... - [Subchapter V vs. Chapter 11: Which Option Should Small Businesses Choose?](https://elpllc.law/blog/subchapter-v-vs-chapter-11-which-option-should-small-businesses-choose/): Most businesses that need to reorganize their debts to regain financial stability have two primary options: file under Subchapter V... - [Considering Chapter 11: Key Post-Filing Mistakes to Avoid](https://elpllc.law/blog/considering-chapter-11-key-post-filing-mistakes-to-avoid/): Reorganizing a company’s debts under Chapter 11 requires an informed and strategic approach. This applies at all stages of the... - [Subchapter V Debt Limit in 2026: Is Your Business Eligible to File?](https://elpllc.law/blog/subchapter-v-debt-limit-in-2026-is-your-business-eligible-to-file/): Subchapter V of the U. S. Bankruptcy Code allows qualifying small businesses to reorganize their debts without going through the... - [Considering Chapter 11: Key Pre-Filing Mistakes to Avoid](https://elpllc.law/blog/considering-chapter-11-key-pre-filing-mistakes-to-avoid/): Filing for bankruptcy under Chapter 11 requires an informed and strategic approach. While reorganizing a business’s debts under Chapter 11... - [5 Potential Outcomes of Shareholder Disputes](https://elpllc.law/blog/5-potential-outcomes-of-shareholder-disputes/): Disputes between shareholders can have both short-term and long-term consequences. In the short term, shareholder disputes can disrupt the business’s... - [Partnership Disputes: When One Partner Wants to Break Up, and the Other Doesn't](https://elpllc.law/blog/partnership-disputes-when-one-partner-wants-to-break-up-and-the-other-doesnt/): While partnership disputes can involve numerous issues, in most cases, the partners will share a common goal of keeping the... - [Filing for Chapter 11 in 2026: Key Insights for Florida Business Owners](https://elpllc.law/blog/filing-for-chapter-11-in-2026-key-insights-for-florida-business-owners/): In the right circumstances, reorganizing a business’s debts under Chapter 11 can be an effective way to restore its financial... - [How Do I Make Sure Filing Under Chapter 11 is the Right Choice for My Business?](https://elpllc.law/blog/how-do-i-make-sure-filing-under-chapter-11-is-the-right-choice-for-my-business/): While reorganizing under Chapter 11 can be a viable path forward for financially struggling businesses, it isn’t the right choice... - [Year in Review: Key Business Bankruptcy Insights from 2025](https://elpllc.law/blog/year-in-review-key-business-bankruptcy-insights-from-2025/): As we do every year, we published numerous articles on our blog throughout 2025 that offer important insights for business... - [Year in Review: Key Contract Litigation Insights from 2025](https://elpllc.law/blog/year-in-review-key-contract-litigation-insights-from-2025/): As we do every year, we published numerous articles on our blog throughout 2025 that provide important insights for business... - [Contract Disputes Involving Pricing and Fees: When One Party Claims It Doesn't Have to Pay](https://elpllc.law/blog/contract-disputes-involving-pricing-and-fees-when-one-party-claims-it-doesnt-have-to-pay/): In a previous article, we discussed key considerations for addressing (and resolving) contract disputes when one party claims underpayment. If... - [Contract Disputes Involving Pricing and Fees: When One Party Claims Underpayment](https://elpllc.law/blog/contract-disputes-involving-pricing-and-fees-when-one-party-claims-underpayment/): Among the various types of disputes businesses can face, pricing and fee disputes are among the most common. If one... - [7 Pitfalls to Avoid Before, During and After a Chapter 11 Reorganization](https://elpllc.law/blog/7-pitfalls-to-avoid-before-during-and-after-a-chapter-11-reorganization/): Going through a Chapter 11 reorganization requires careful planning and a detailed understanding of the immediate and long-term financial implications... - [Subchapter V: A Closer Look at the "Small Business" Bankruptcy Process](https://elpllc.law/blog/subchapter-v-a-closer-look-at-the-small-business-bankruptcy-process/): For many companies that are struggling to stay afloat, pursuing a Subchapter V “small business” bankruptcy can provide a viable... - [Contract Disputes Involving Efforts to Force Compliance: When Specific Performance Is (and Isn't) a Remedy](https://elpllc.law/blog/contract-disputes-involving-efforts-to-force-compliance-when-specific-performance-is-and-isnt-a-remedy/): If your company is facing a contract dispute involving another party’s failure to uphold its end of the bargain, you... - [Are Companies Required to Disclose Chapter 11 Bankruptcies?](https://elpllc.law/blog/are-companies-required-to-disclose-chapter-11-bankruptcies/): While reorganizing a company’s debts under Chapter 11 can have several benefits in the right circumstances, one of the drawbacks... - [How Do Companies Keep Operating After Bankruptcy?](https://elpllc.law/blog/how-do-companies-keep-operating-after-bankruptcy/): Filing for bankruptcy doesn’t necessarily mean going out of business. Not only can businesses survive the bankruptcy process, but if... - [What Can Happen if a Struggling Business Doesn't File for Bankruptcy?](https://elpllc.law/blog/what-can-happen-if-a-struggling-business-doesnt-file-for-bankruptcy/): We talk a lot on our blog about the benefits of filing for bankruptcy and the importance of making informed... - [Business Bankruptcy vs. Assignment for the Benefit of Creditors (ABC): Key Considerations for Struggling Businesses](https://elpllc.law/blog/business-bankruptcy-vs-assignment-for-the-benefit-of-creditors-abc-key-considerations-for-struggling-businesses/): While struggling businesses have a variety of options for dealing with financial distress, two of the primary options in this... - [Contract Disputes Involving Service Level Agreements (SLAs): Are They Enforceable or Not?](https://elpllc.law/blog/contract-disputes-involving-service-level-agreements-slas-are-they-enforceable-or-not/): Service level agreements (SLAs) are common terms in vendor contracts. While they are most commonly used in the information technology... - [Contract Disputes Involving Renewals: What if One Party Refuses to Renew on Reasonable Terms?](https://elpllc.law/blog/contract-disputes-involving-renewals-what-if-one-party-refuses-to-renew-on-reasonable-terms/): Leases, licenses, franchise agreements, service agreements, and other commercial contracts frequently include provisions concerning renewal. In many cases, it will... - [What if Your Company's Chapter 11 Reorganization Plan Isn't Working Out?](https://elpllc.law/blog/what-if-your-companys-chapter-11-reorganization-plan-isnt-working-out/): When companies pursue reorganization under Chapter 11, they typically do so with optimism for the future. The purpose of reorganizing... - [Responding to Allegations of Bankruptcy Fraud or Abuse](https://elpllc.law/blog/responding-to-allegations-of-bankruptcy-fraud-or-abuse/): Last month, we published an article discussing common allegations of bankruptcy fraud and how to avoid these allegations when going... - [Contract Disputes Involving Imminent or Ongoing Harm: Seeking Preliminary Injunctive Relief](https://elpllc.law/blog/contract-disputes-involving-imminent-or-ongoing-harm-seeking-preliminary-injunctive-relief/): While complex contract disputes can take months, or even years, to resolve, sometimes companies don’t have time to wait. If... - [The “Five Ws” of Chapter 11 Reorganization Plans](https://elpllc.law/blog/the-five-ws-of-chapter-11-reorganization-plans/): While some business owners and executives are well-versed in the intricacies of the Chapter 11 bankruptcy process, for those who... - [Bankruptcy Fraud and Abuse: How to Avoid Allegations During a Chapter 11 Reorganization](https://elpllc.law/blog/bankruptcy-fraud-and-abuse-how-to-avoid-allegations-during-a-chapter-11-reorganization/): A recent article from the Government Accountability Project discusses the role of forensic accountants employed by the U. S. Department... - [Contract Disputes Involving Mandatory ADR: When Mediation or Arbitration is Required](https://elpllc.law/blog/contract-disputes-involving-mandatory-adr-when-mediation-or-arbitration-is-required/): Many commercial contracts include provisions that mandate mediation or arbitration (or both) in the event of a dispute between the... - [When Is It Time to Talk to a Business Bankruptcy Attorney?](https://elpllc.law/blog/when-is-it-time-to-talk-to-a-business-bankruptcy-attorney/): As a business owner, it can be difficult to know when it is time to consider seeking financial relief through... - [What Are the Different Types of Business Bankruptcies?](https://elpllc.law/blog/what-are-the-different-types-of-business-bankruptcies/): If your business is in financial distress, filing for bankruptcy could be the best option. Filing for bankruptcy provides immediate... - [Contract Disputes Involving Third-Party Claims: Indemnification, Insurance & More](https://elpllc.law/blog/contract-disputes-involving-third-party-claims-indemnification-insurance-more/): While many contract disputes arise out of disagreements between the parties involved, contract disputes can also involve third-party claims. In... - [7 Tips for Preparing to Avoid Unnecessary Issues During a Business Bankruptcy](https://elpllc.law/blog/7-tips-for-preparing-to-avoid-unnecessary-issues-during-a-business-bankruptcy/): While successfully navigating the business bankruptcy process can help companies restore their financial stability and get back on the path... - [Strategic Considerations for Reorganizing Under Chapter 11](https://elpllc.law/blog/strategic-considerations-for-reorganizing-under-chapter-11/): Reorganizing a company’s debts under Chapter 11 can be an effective way to reduce the company’s debt load and preserve... - [Contract Disputes Involving Cybersecurity Breaches: Key Insights for Business Owners](https://elpllc.law/blog/contract-disputes-involving-cybersecurity-breaches-key-insights-for-business-owners/): Cybersecurity breaches are a major concern for businesses of all sizes and in all industries. Whether attackers target customers’ information... - [Surviving (and Thriving) After a Chapter 11 Bankruptcy](https://elpllc.law/blog/surviving-and-thriving-after-a-chapter-11-bankruptcy/): While bankruptcy is often viewed as having negative connotations, the reality is that there are several ways that companies of... - [Involuntary Bankruptcy: What Florida Business Owners and Executives Need to Know](https://elpllc.law/blog/involuntary-bankruptcy-what-florida-business-owners-and-executives-need-to-know/): While businesses can use bankruptcy as a tool to avoid collection, alleviate financial strain, and restructure their debts for the... - [Partner Brett D. Lieberman Serves as Panelist for CLE Program on Insolvency Options for Florida Businesses](https://elpllc.law/blog/partner-brett-d-lieberman-serves-as-panelist-for-cle-program-on-insolvency-options-for-florida-businesses/): Partner and Miami bankruptcy lawyer Brett D. Lieberman recently served as a panelist for a continuing legal education (CLE) program... - [Important Changes to the Chapter 11 Bankruptcy Process Take Effect on April 1, 2025](https://elpllc.law/blog/important-changes-to-the-chapter-11-bankruptcy-process-take-effect-on-april-1-2025/): Some important changes to the Chapter 11 bankruptcy process are set to take effect on April 1, 2025. These changes... - [A Closer Look at Five Potential Alternatives to Reorganizing Under Chapter 11](https://elpllc.law/blog/a-closer-look-at-five-potential-alternatives-to-reorganizing-under-chapter-11/): We’ve talked previously about some potential alternatives to reorganizing under Chapter 11, and for businesses that are in financial distress,... - [7 Key Considerations When Settling a Shareholder or Partnership Dispute in Florida](https://elpllc.law/blog/7-key-considerations-when-settling-a-shareholder-or-partnership-dispute-in-florida/): Disputes between shareholders or partners can have wide-reaching implications. Not only can they have direct impacts on the shareholders or... - [Shareholder Disputes: Understanding the Litigation Process and Its Alternatives](https://elpllc.law/blog/shareholder-disputes-understanding-the-litigation-process-and-its-alternatives/): Shareholder disputes can involve a wide range of issues and competing interests. They can also proceed in a variety of... - [Protecting Creditors’ Rights During (and After) the Chapter 11 Bankruptcy Process](https://elpllc.law/blog/protecting-creditors-rights-during-and-after-the-chapter-11-bankruptcy-process/): While Chapter 11 bankruptcy filings can present significant financial risks for creditors, there are also several tools, tactics, and strategies... - [Understanding the Consequences (Both Positive and Negative) of Chapter 11 Bankruptcy](https://elpllc.law/blog/understanding-the-consequences-both-positive-and-negative-of-chapter-11-bankruptcy/): Deciding whether to reorganize a company’s debts under Chapter 11 requires careful consideration of several factors. While filing under Chapter... - [10 Common Disputes in Chapter 11 Business Bankruptcy Cases](https://elpllc.law/blog/10-common-disputes-in-chapter-11-business-bankruptcy-cases/): While many business bankruptcies under Chapter 11 go smoothly, various issues can arise during the process. When these issues arise,... - [An Overview of the Chapter 11 Bankruptcy Process for 2025](https://elpllc.law/blog/an-overview-of-the-chapter-11-bankruptcy-process-for-2025/): If you are thinking about filing to reorganize your business’s debts under Chapter 11 in 2025, getting started begins with... - [How Common Is It for Businesses to File for Bankruptcy Under Chapter 11?](https://elpllc.law/blog/how-common-is-it-for-businesses-to-file-for-bankruptcy-under-chapter-11/): Numerous businesses of all sizes file for reorganization under Chapter 11 of the U. S. Bankruptcy Code every year. As... - [2024 Year in Review: Key Insights for South Florida Business Owners Considering Bankruptcy in 2025](https://elpllc.law/blog/2024-year-in-review-key-insights-for-south-florida-business-owners-considering-bankruptcy-in-2025/): In 2024, we published several articles on our blog focused specifically on providing information to business owners and executives who... - [Filing a Proof of Claim in a Chapter 11 Bankruptcy: A Critical Step for Protecting Creditors’ Rights](https://elpllc.law/blog/filing-a-proof-of-claim-in-a-chapter-11-bankruptcy-a-critical-step-for-protecting-creditors-rights/): When a business files for bankruptcy under Chapter 11 in South Florida, it is up to the business’s creditors to... - [First Day Motions in Chapter 11 Bankruptcies: How Businesses Can (and Should) Use Them to Their Advantage](https://elpllc.law/blog/first-day-motions-in-chapter-11-bankruptcies-how-businesses-can-and-should-use-them-to-their-advantage/): When seeking to reorganize their debts under Chapter 11, businesses can leverage several aspects of the bankruptcy process to their... - [Commercial Foreclosures in Florida: What Financially Distressed Companies Need to Know](https://elpllc.law/blog/commercial-foreclosures-in-florida-what-financially-distressed-companies-need-to-know/): If your company has received a foreclosure notice, you will need to act promptly. While your company may have options... - [What Unsecured Creditors Need to Know About Chapter 11 Bankruptcies](https://elpllc.law/blog/what-unsecured-creditors-need-to-know-about-chapter-11-bankruptcies/): While unsecured creditors’ rights are limited in Chapter 11 bankruptcy proceedings, these creditors still can—and should—take action to protect their... - [My Company Received a Notice of Bankruptcy. What Should I Do?](https://elpllc.law/blog/my-company-received-a-notice-of-bankruptcy-what-should-i-do/): If your company has received a Notice of Bankruptcy, this means that one of your clients or customers (or an... - [What NOT To Do if Your Business Has a Breach of Contract Claim in Florida](https://elpllc.law/blog/what-not-to-do-if-your-business-has-a-breach-of-contract-claim-in-florida/): In a recent article, we discussed seven steps to take if your business has (or may have) a breach of... - [What Documents Are Needed for a Chapter 11 Business Bankruptcy in Florida?](https://elpllc.law/blog/what-documents-are-needed-for-a-chapter-11-business-bankruptcy-in-florida/): Filing for bankruptcy under Chapter 11 is a document-intensive process. Companies contemplating bankruptcy need to gather several forms of documentation... - [When Should a Company File Bankrupt?](https://elpllc.law/blog/when-should-a-company-file-bankrupt/): On this blog we cover a lot of topics related to business bankruptcies. In the past year alone, we’ve covered... - [Restoring a Company’s Financial Standing Post-Chapter 11 Bankruptcy](https://elpllc.law/blog/restoring-a-companys-financial-standing-post-chapter-11-bankruptcy/): The purpose of going through a Chapter 11 bankruptcy is to get a company back on solid financial ground. Rather... - [Debtor-in-Possession Financing and Chapter 11: What Florida Business Owners Need to Know](https://elpllc.law/blog/debtor-in-possession-financing-and-chapter-11-what-florida-business-owners-need-to-know/): Filing for bankruptcy under Chapter 11 of the U. S. Bankruptcy Code provides a way for companies to reorganize their... - [Partition Actions Involving Florida Real Estate: What Co-Owners Need to Know](https://elpllc.law/blog/partition-actions-involving-florida-real-estate-what-co-owners-need-to-know/): If you co-own real estate with someone else in Florida, disputes regarding the property can present a variety of challenges.... - [What To Do if Your Business Has a Breach of Contract Claim in Florida](https://elpllc.law/blog/what-to-do-if-your-business-has-a-breach-of-contract-claim-in-florida/): If your business is dealing with a breach of contract in Florida, you need to make informed and strategic decisions... - [Small Business Bankruptcy: What You Want to Know But Don’t Want to Ask](https://elpllc.law/blog/small-business-bankruptcy-what-you-want-to-know-but-dont-want-to-ask/): As a small business owner, it can be difficult to ask questions about filing for bankruptcy. In some cases, you... - [The Chapter 11 “Cramdown:” How To Use One to Your Company’s Advantage](https://elpllc.law/blog/the-chapter-11-cramdown-how-to-use-one-to-your-companys-advantage/): In a Chapter 11 business bankruptcy, a “cramdown” allows the business to secure court approval for its reorganization plan without... - [What Types of Debts Are Eligible for Discharge in a Chapter 11 Bankruptcy?](https://elpllc.law/blog/what-types-of-debts-are-eligible-for-discharge-in-a-chapter-11-bankruptcy/): While the primary purpose of a Chapter 11 bankruptcy is to reduce the business’ monthly debt load through a reorganized... - [Remedies in Florida Partnership Disputes](https://elpllc.law/blog/remedies-in-florida-partnership-disputes/): Last month, we discussed some key considerations for resolving partnership disputes through mediation or arbitration. In that article, we covered... - [Bankruptcy Options and Alternatives for Small Businesses in Florida](https://elpllc.law/blog/bankruptcy-options-and-alternatives-for-small-businesses-in-florida/): From high interest rates to the lingering effects of the COVID-19 pandemic, many small businesses in Florida find themselves struggling... - [7 Key Considerations for Operating Sustainably After a Chapter 11 Bankruptcy](https://elpllc.law/blog/7-key-considerations-for-operating-sustainably-after-a-chapter-11-bankruptcy/): Going through a Chapter 11 bankruptcy provides the opportunity to reorganize a company’s debts so that it can remain in... - [Resolving a Partnership Dispute Through Mediation or Arbitration](https://elpllc.law/blog/resolving-a-partnership-dispute-through-mediation-or-arbitration/): When business partners reach an impasse, it will often (though not always) be in everyone’s best interests to find a... - [Staving Off Chapter 11: When Is (and Isn’t) It Feasible to Avoid a Business Bankruptcy?](https://elpllc.law/blog/staving-off-chapter-11-when-is-and-isnt-it-feasible-to-avoid-a-business-bankruptcy/): When a company is struggling financially, filing for bankruptcy under Chapter 11 is an option that allows the company to... - [The “Basics” of Chapter 11 Bankruptcy—According to the U.S. Courts](https://elpllc.law/blog/the-basics-of-chapter-11-bankruptcy-according-to-the-u-s-courts/): If you search for information about the Chapter 11 bankruptcy process online, one of the first resources you’ll likely find... - [Discovery in Breach-of-Contract Litigation: A Primer for Florida Business Owners](https://elpllc.law/blog/discovery-in-breach-of-contract-litigation-a-primer-for-florida-business-owners/): In commercial breach-of-contract litigation, discovery can play a key role in defining both parties’ litigation strategies and setting the stage... - [5 Common Chapter 11 Bankruptcy Mistakes to Avoid](https://elpllc.law/blog/5-common-chapter-11-bankruptcy-mistakes-to-avoid/): While reorganizing a company’s debts under Chapter 11 can provide much-needed financial stability and establish a solid foundation for future... - [What Does the FTC’s New Noncompete Rule Mean for Florida Businesses?](https://elpllc.law/blog/what-does-the-ftcs-new-noncompete-rule-mean-for-florida-businesses/): On April 23, 2024, the U. S. Federal Trade Commission (FTC) announced the issuance of a new final rule “banning... - [10 Key Provisions in Chapter 11 of the U.S. Bankruptcy Code](https://elpllc.law/blog/10-key-provisions-in-chapter-11-of-the-u-s-bankruptcy-code/): For many businesses in financial distress, reorganizing their debts through a Chapter 11 bankruptcy is the best path forward. Reorganizing... - [Reorganization Plans Under Chapter 11: What Business Owners in Florida Need to Know](https://elpllc.law/blog/reorganization-plans-under-chapter-11-what-business-owners-in-florida-need-to-know/): When going through a business bankruptcy Under Chapter 11, a key step in the process is securing confirmation of the... - [Pros and Cons of Chapter 11 Bankruptcy for Companies in Financial Distress](https://elpllc.law/blog/pros-and-cons-of-chapter-11-bankruptcy-for-companies-in-financial-distress/): Like most business decisions, choosing to file for bankruptcy under Chapter 11 of the U. S. Bankruptcy Code can have... - [Filing a Claim for Fraud: What Business Owners in Florida Need to Know](https://elpllc.law/blog/filing-a-claim-for-fraud-what-business-owners-in-florida-need-to-know/): If a vendor, supplier, contractor, strategic partner or other commercial entity has defrauded your business, it will be important for... - [Filing for Chapter 11 Bankruptcy Again: When Does It Make Sense to Pursue a “Chapter 22?”](https://elpllc.law/blog/filing-for-chapter-11-bankruptcy-again-when-does-it-make-sense-to-pursue-a-chapter-22/): Filing for bankruptcy under Chapter 11 affords the opportunity for struggling companies to restore their financial stability, rebuild their credit... - [How Can Debtors Defend Against a Motion for Relief from an Automatic Stay?](https://elpllc.law/blog/how-can-debtors-defend-against-a-motion-for-relief-from-an-automatic-stay/): For businesses in financial distress, one of the most immediate benefits of filing for bankruptcy under Chapter 11 is triggering... - [Seeking Relief from the Automatic Stay: Protecting Creditors’ Rights During the Bankruptcy Process](https://elpllc.law/blog/seeking-relief-from-the-automatic-stay-protecting-creditors-rights-during-the-bankruptcy-process/): Customer and client bankruptcies can present significant risks for creditors. Chapter 7 and Chapter 11 of the U. S. Bankruptcy... - [Responding to a Breach of Contract: What Florida Business Owners Need to Know](https://elpllc.law/blog/responding-to-a-breach-of-contract-what-florida-business-owners-need-to-know/): As a business owner, it is important to know what to do when a vendor, contractor, customer or other party... - [Commercial Foreclosure Defense: Options for Businesses in South Florida](https://elpllc.law/blog/commercial-foreclosure-defense-options-for-businesses-in-south-florida/): While facing commercial foreclosure can present significant financial and legal risks, businesses targeted in commercial foreclosure actions will often have... - [Understanding the Key Terms in a Title Insurance Policy](https://elpllc.law/blog/understanding-the-key-terms-in-a-title-insurance-policy/): Buying title insurance is important any time you buy a piece of real estate in South Florida. Hopefully, you will... - [Understanding the Key Terms in a Small Business Bankruptcy](https://elpllc.law/blog/understanding-the-key-terms-in-a-small-business-bankruptcy/): If you are struggling to keep your small business afloat, filing for bankruptcy could be a smart solution. Through bankruptcy,... - [Title Insurance: What Do Real Estate Buyers in South Florida Need to Know?](https://elpllc.law/blog/title-insurance-what-do-real-estate-buyers-in-south-florida-need-to-know/): Whether you are buying a home or a piece of commercial real estate in South Florida, purchasing title insurance can... - [What to Expect During (and After) the Subchapter V Small Business Bankruptcy Process](https://elpllc.law/blog/what-to-expect-during-and-after-the-subchapter-v-small-business-bankruptcy-process/): Subchapter V bankruptcies allow small businesses to reorganize their debts without facing the additional costs and challenges involved in a... ## Testimonials - [Would use them again](https://elpllc.law/testimonial/would-use-them-again/): I used this law firm to evict my tenant on Hollywood beach. They were running an daycare business out of... - [Very professional and extremely knowledgeable](https://elpllc.law/testimonial/very-professional-and-extremely-knowledgeable/): One of my colleagues called this firm for information on doing a residential eviction for a single family home she... - [Great and fast services](https://elpllc.law/testimonial/great-and-fast-services/): Great and fast services. Like to work with professionals who value your time and budget. - [Knowledgeable and efficient](https://elpllc.law/testimonial/knowledgeable-and-efficient/): I used this law firm to advise me on commercial closings and landlord-tenant law. These attorneys are knowledgeable and efficient.... - [Highly recommend!](https://elpllc.law/testimonial/highly-recommend/): I have had the opportunity to work and against the partners at this firm and recommend without hesitation. Not only... - [I dont have any complaints](https://elpllc.law/testimonial/i-dont-have-any-complaints/): They have been professionally handling my situation from the beginning, either them or their secretary generally gets back to me... - [These lawyers are professional, smart and kind](https://elpllc.law/testimonial/these-lawyers-are-professional-smart-and-kind/): I used this law firm evict my tenants in Miami, Boca and Hollywood. None of them paid due to COVID.... - [Satisfied with the result](https://elpllc.law/testimonial/satisfied-with-the-result/): Used this form for an section 8 eviction. We got the final eviction judgment faster than I expected... about 22... # # Detailed Content ## Pages - Published: 2026-09-01 - Modified: 2026-09-24 - URL: https://elpllc.law/professionals/franco-d-torre/ Franco Della Torre, Esq. Associate Franco Della Torre is an associate with the firm. Mr. Della Torre has a background in corporate finance, corporate regulations and taxation, Chapter 11 bankruptcy reorganizations and complex commercial litigation. Mr. Della Torre represents clients in Chapter 11 reorganizations and complex commercial disputes throughout South Florida. Before joining the firm, Mr. Della Torre worked as an international corporate restructuring attorney at an AmLaw 100 firm serving Fortune 500 clients. Mr. Della Torre also founded a law practice advising startups on entity formation, equity structuring, and capital raising. Mr. Della Torre earned his J. D. , cum laude, from the University of Miami School of Law. He also holds a postgraduate degree in Artificial Intelligence and Law from the University of Buenos Aires. He is admitted to practice before the U. S. District Court and U. S. Bankruptcy Court for the Southern District of Florida. Mr. Della Torre is fluent in Spanish and Portuguese. He is also proficient in Italian. - Published: 2026-02-17 - Modified: 2026-09-02 - URL: https://elpllc.law/professionals/craig-blinderman/ Craig Blinderman Partner Craig Blinderman is an accomplished commercial trial lawyer with more than 34 years of experience practicing trial law. He has extensive experience in state and federal courts, as well as appellate proceedings, representing sophisticated business owners and senior executives in high-stakes disputes involving multimillion-dollar claims, complex contractual issues, and matters with significant operational and financial consequences. He has successfully tried cases, arbitrated national and international business disputes, and resolved complex matters through strategic mediation. Craig is a formidable advocate in the courtroom, but he approaches every matter with disciplined strategy. He prepares each case as if it will be tried, positioning his clients from a place of strength—whether the ultimate resolution comes through verdict, arbitration award, or negotiated settlement. His decades of litigation experience inform his business counsel, allowing clients to assess risk with precision and act decisively. Known for direct, candid advice, Craig clearly outlines the legal and practical consequences of major business decisions. He understands that executives must weigh risk, cost, reputation, and long-term objectives. His role is not to obstruct business initiatives, but to protect and advance them through informed, strategic action. Education Western Michigan University, Thomas Cooley Law School, J. D. 1991 University of Florida, B. S. Advertising 1986 Contact Craig Blinderman today by calling (305) 768-9909. - Published: 2025-07-31 - Modified: 2026-09-24 - URL: https://elpllc.law/professionals/denissis-dias/ Denissis Dias Paralegal Prior to joining our firm, Denissis Dias gained over 13 years of customer service experience and 4 years as a Junior Paralegal, developing a solid foundation in Real Estate, Litigation, and Corporate Law. She brings hands-on expertise in corporate entity formation, title work and real estate closings, legal research, document preparation, client intake, and matter management. Her proactive and detail-oriented approach ensures that clients remain informed, supported, and confident throughout every stage of their legal matters. Born to a Brazilian family and raised in Miami, Denissis is fluent in English, Portuguese, and Spanish. Her multilingual abilities and cultural insight allow her to connect effectively with clients from diverse backgrounds, delivering a seamless and well-informed legal experience. Contact Denissis Dias today by calling (305) 768-9909. - Published: 2024-09-18 - Modified: 2026-09-24 - URL: https://elpllc.law/professionals/alexander-lewitt/ Alexander Lewitt Associate Born and raised in South Florida, Alex’s practice focuses on representing companies, creditors, and other parties-in-interest in a number of in-court and out-of-court restructurings, recapitalization, and other matters. While focusing his practice on insolvency related representations, Alex also represents hedge fund managers, investment funds, and their investors in disputes such as breaches of fiduciary duty, misappropriation of investor funds, and breach of contract claims. Alex’s other practice areas also include complex commercial litigation such as contract disputes, post-judgment collection and enforcement, and commercial tenant disputes. Publications Washington & Lee Law Review, Vol. 74, No. 4 (Fall 2017) The Debt-Equity Labryinth: A Case for the New Section 385 Regulations Admissions New York State State of Florida United States District Court for the Southern District of Florida United States Bankruptcy Court for the Southern District of Florida Education Boston University (B. A. , 2015) Washington & Lee University School of Law (J. D. , 2018) - Published: 2024-04-15 - Modified: 2026-09-24 - URL: https://elpllc.law/professionals/virginia-gonzalez/ Virginia Gonzalez Paralegal Virginia Gonzalez has 16 years of higher education combined with professional experience as a litigation paralegal. Born and raised in Puerto Rico, she studied law and business administration, completing her Juris Doctor and Master of Business Administration in 2017. She then relocated to Florida to pursue new professional opportunities. Prior to joining our firm in July 2023, she acquired litigation support experience at a defense law firm, where she assisted an office manager and two attorneys for two years. She also spent four years in an in-house legal department supporting lead trial attorneys through all litigation phases, including trial attendance. Virginia brings experience in litigation support, legal writing, trial preparation, court procedures, process development, and management. She is highly organized, proactive, and goal-oriented. Contact Virginia Gonzalez today by calling (305) 768-9909. - Published: 2024-04-11 - Modified: 2026-09-24 - URL: https://elpllc.law/professionals/tisha-bougouneau/ Tisha Bougouneau Paralegal With over 27 years of dedicated legal expertise, Tisha is a seasoned litigation paralegal with extensive experience in insurance, real estate, and a profound focus in bankruptcy. Her comprehensive background spans both creditor and debtor representation, showcasing a versatile skill set in navigating complex legal landscapes. Committed to excellence, Tisha brings a wealth of knowledge to every case, contributing to successful outcomes and client satisfaction. As a remote online notary, Tisha leverages cutting-edge technology to facilitate seamless transactions. Additionally, she is proud to be an alumna of Nova Southeastern University, a testament to her commitment to continuous learning and professional growth. Contact Tisha Bougouneau today by calling (305) 768-9909. - Published: 2022-09-26 - Modified: 2024-02-12 - URL: https://elpllc.law/real-estate/title-lawyer/ Get Help from an Experienced Miami Real Estate Title Lawyer or Miami Title Insurance Attorney Today When buying or selling real estate in South Florida, title-related issues can make or break the deal. Buyers need to know that they are getting a clear title, or at least that they will have access to adequate remedies in the event that they encounter issues post-closing. Lenders will have concerns related to titles as well, and, to adequately protect their interests, all parties involved in residential and commercial real estate transactions should work with an experienced Miami title insurance attorney. We represent buyers, sellers, lenders, and title insurance companies in all title-related matters in South Florida. We help our clients address concerns and resolve issues before and during the closing, and we provide representation for post-closing disputes when necessary. Common Title Issues in Real Estate Transactions Residential and commercial real estate transactions can potentially involve a wide range of title issues. While most transactions close without the need to address any title-related concerns, it is not uncommon for issues to arise. For example, some issues our clients frequently ask us to address include: Do I need a property title search in South Florida? For buyers, conducting a property title search makes sense in virtually all scenarios. Since title insurance doesn’t cover all types of title defects (as discussed in greater detail below), conducting a title search provides a crucial additional layer of insurance against buying a property with a clouded title. Do I need title insurance in South Florida? Even a comprehensive property title search won’t necessarily identify all issues with a property’s title. As a result, title insurance is critical for buyers and lenders in the vast majority of situations. While there are limited circumstances in which title insurance may not be necessary, it is worth consulting with a Miami title insurance attorney before making a potentially costly mistake. How can I be certain that I am getting a clear title? The simple truth is that it isn’t possible to be absolutely certain that you are getting a clear title. This is why buyers and lenders need to take steps to protect themselves beyond conducting a property title search. Protecting against title defects involves not only purchasing title insurance but including appropriate protections in the purchase and sale agreement as well. What if a buyer is seeking to back out due to a title issue? If you are selling a property and the buyer is seeking to back out due to a title-related concern, you should speak with a Miami real estate title lawyer about your options. While the buyer might have the right to back out based on a contingency, this isn’t necessarily the case, and you may have options if you want to force the transaction to go through. How do I ensure proper transfer of title at closing? Ensuring proper transfer of title at closing is important for all parties involved. The best way to do this is to work with an experienced Miami real estate title lawyer throughout the transaction and closing processes. Again, these are just examples. If you have any title-related concerns in connection with a pending residential or commercial real estate transaction in South Florida, we strongly recommend speaking with an attorney before you move forward. Understanding the Benefits and Limitations of Title Insurance Title insurance protects purchasers and lenders against many of the title-related risks associated with real estate acquisitions. But, based on our experience, there are a lot of common misconceptions about title insurance, and when purchasers, in particular, rely on these misconceptions,... - Published: 2022-09-26 - Modified: 2023-03-06 - URL: https://elpllc.law/land-use-real-estate-closings-title/ Miami Real Estate Closing Attorney Assistance with South Florida Real Estate Closings and Title Disputes When entering into a real estate transaction, it is essential that you have the proper advice and counsel from a qualified Miami real estate closing attorney. People often make the mistake of relying upon the advice of a real estate broker or title insurance company to provide legal advice in connection to a real estate transaction. The purchase and sale of real estate are typically complex legal transactions and require guidance from experienced and qualified professionals that understand how to navigate the intricate legal issues that arise in every transaction. It is advisable for individuals and businesses that are entering into a real estate transaction to hire a real estate closing and title attorney prior to signing a contract. Often, purchasing real estate is one of the most significant legal transactions a person will ever encounter in their lifetime and it is a prudent time to have a lawyer on your side representing your interests. Our experienced Miami real estate attorneys will help you, navigate you through the pitfalls of real estate transactions and avoid the potential problems that may arise in your real estate transaction. Representation for Sellers in Real Estate Closings and Title Disputes When selling a property in South Florida, you want the process to go as smoothly as possible. But, while many real estate sales go through without incident, it is not unusual for unexpected issues to arise. If you are selling a property in South Florida, a Miami real estate closing attorney at Edelboim Lieberman can help ensure that you do not encounter unexpected issues before, during or after closing. We have significant experience representing sellers in residential and commercial real estate transactions, and we have helped numerous clients both avoid and overcome last-minute challenges. Our attorneys can carefully review all aspects of your transaction, ensure that you have appropriate (and necessary) protections in place, and communicate with the buyer’s counsel on your behalf to address any issues that may present roadblocks to a timely and non-confrontational settlement. Our attorneys represent sellers in pre-closing and post-closing disputes as well. This includes disputes involving matters ranging from claimed property and title defects to low appraisals and buyer financing issues. In all cases, we take a practical and cost-conscious approach focused on protecting our client's financial interests as efficiently as possible. Representation for Buyers in Real Estate Closings and Title Disputes If you are preparing to purchase real estate in South Florida, it is extremely important that you make informed decisions. You do not want to leave anything to chance. If the deal falls through unexpectedly, or if the property or title isn’t in the condition you expect, this could lead to substantial unanticipated costs. A Miami real estate closing attorney at Edelboim Lieberman can help you avoid unexpected issues during the buying process. We carefully review our clients’ purchase agreements and other closing documents as well as all title documents and financing paperwork. We also assist our clients with title searches, title insurance, and related issues; and, when issues arise during walkthroughs and final preparations, we help our clients make informed and strategic decisions with their long-term best interests in mind. We also represent buyers in informal and formal dispute resolution proceedings. If your seller has misrepresented any information or failed to uphold its contractual obligations, we can take appropriate legal action on your behalf. While it is often possible to resolve pre-closing and post-closing disputes without going to court, we have significant litigation experience and can seek appropriate relief from... - Published: 2022-09-21 - Modified: 2024-02-12 - URL: https://elpllc.law/real-estate/real-estate-contracts/ Discuss Your Deal with a Miami Real Estate Contract Lawyer Our firm represents parties to all types of real estate contracts in South Florida. We also provide representation for disputes arising out of leases and other agreements. Our lawyers bring decades of relevant experience to the table, and regardless of your specific needs, we encourage you to speak with a Miami real estate contract lawyer at Edelboim Lieberman about how we can help. Whether your company is preparing to build or lease a major commercial property or you are seeking to purchase your dream home, our lawyers can help assist you with making informed decisions and protecting your (or your company’s) financial interests and legal rights. If you are facing a real estate contract dispute, we can help you evaluate your options and choose the best path forward, and we can represent you in any necessary litigation or alternative dispute resolution (ADR) proceedings. Real Estate Contract Drafting and Negotiation By Experienced Miami Real Estate Contract Lawyers Our transactional real estate services include drafting and negotiating all types of contracts. For example, each Miami real estate contract lawyer at our firm has significant experience representing clients in connection with: Real Estate Construction Contracts We draft and negotiate contracts for property owners and all other parties involved in the design, development, financing, and construction of commercial projects in South Florida. This includes drafting and negotiating construction contracts, all types of debt and equity financing agreements, contracts with architecture and engineering firms, contractor and subcontractor agreements, and insurance contracts, among others. With significant experience handling construction-related disputes, our lawyers are intimately familiar with the issues that tend to lead to litigation during (and after) construction, and we rely on these insights to help our clients effectively mitigate their risk during the contracting process. Real Estate Financing Agreements Our lawyers draft and negotiate real estate financing agreements for real estate purchasers and lenders. This includes residential mortgages as well as contracts for all types of commercial loans and equity investments. Financing agreements can present a variety of issues and risks for both parties, and, as a result, it is imperative that both parties engage an experienced Miami real estate contract lawyer to advise them prior to contract execution. Real Estate Purchase and Sale Contracts Much of our transactional real estate practice involves representing clients in connection with purchases and sales. We represent purchasers, sellers, and lenders in connection with the acquisition and disposition of all types of residential and commercial properties in South Florida. In addition to drafting and negotiating financing and purchase agreements, we draft, review and negotiate all other necessary legal documents as well—including closing statements, legal disclosures, warranty deeds, title affidavits, and bills of sale. All of these documents serve important purposes, and none of them should go overlooked. Too often, purchasers, in particular, assume that purchase and sale documents are offered on a take-it-or-leave-it basis. However, it is extremely important that both parties engage counsel to review all closing documents with their respective best interests in mind and that they rely on their lawyers to ensure that their legal and financial interests are adequately protected. Real Estate Leases Another significant portion of our practice involves representing clients in connection with real estate leasing transactions. This includes representing residential landlords as well as representing both commercial lessors and commercial tenants. When drafting and negotiating real estate leases, our lawyers focus on the unique aspects of the property as well as our clients’ specific needs and goals, developing custom-tailored agreements that reflect the individual circumstances at hand. Real estate leases include (or... - Published: 2022-09-21 - Modified: 2024-02-12 - URL: https://elpllc.law/real-estate/commercial-real-estate-litigation/ Discuss Your Options with a Miami Commercial Real Estate Attorney Disputes involving commercial real estate can arise under a broad range of circumstances. From construction through sale, virtually all aspects of commercial real estate development, ownership and management entail litigation risks. If you are dealing with a property-related dispute in South Florida, we can help, and we encourage you to discuss your options with a Miami commercial real estate attorney at Edelboim Lieberman. Our commercial real estate litigation practice encompasses the representation of owners, purchasers, developers, lenders and other interested parties. We handle disputes involving all types of commercial properties, from mixed-used facilities to large office buildings and entertainment venues. If you are facing a dispute, or if you have concerns about a dispute that may be on the horizon, we can help you make informed and strategic decisions focused on minimizing any potential business disruptions while protecting your company’s financial interests to the fullest extent possible. Commercial Real Estate Matters We Handle in Miami Our commercial real estate lawyers handle all types of commercial real estate disputes and litigation in South Florida. This includes (but is not limited to) matters such as: Commercial Real Estate Purchase and Sale Litigation Several issues can lead to litigation arising out of commercial real estate transactions. From issues with the buyer’s financing to issues with the property itself, many different complications can leave commercial parties with little choice but to take legal action. If your company is facing a dispute arising out of a failed sale, or if you need to take legal action to try to ensure that a closing takes place as scheduled, you should speak with a Miami commercial real estate attorney regarding the options your company has available. Our practice includes representing all interested parties in litigation, alternative dispute resolution (ADR) and informal resolution efforts arising out of commercial real estate purchase and sale contracts. For example, we have significant experience in matters involving: Closing delays Disclosures, representations and warranties Escrow deposit disputes Financing issues Insurance and indemnification obligations Property defects Title issues In many cases, it will be in all parties’ best interests to close the deal. If your priority remains to find a path to closing, we will focus our efforts on building the leverage needed to bring everyone to the closing table. But, if the deal is off of the table, we will help you determine your company’s best course of action and pursue all appropriate legal and equitable remedies on your company’s behalf. Commercial Real Estate Lease Litigation Commercial real estate lease disputes can also involve an extremely broad range of issues. We represent landlords and tenants in commercial lease disputes arising in connection with lease negotiations, lease enforcement, lease transfers, lease renewals and lease terminations. This includes (but is by no means limited to) disputes involving issues such as: Calculation of common area maintenance (CAM) charges, utilities, taxes, and other fees and expenses Non-payment of rent, CAM charges, and other fees and expenses Failure to perform necessary property maintenance or repairs Refusal to approve a lease renewal or lease transfer Commercial lease evictions and tenant lease terminations Anchor tenant, non-competition and other lease conditions Property damage, insurance, indemnification and related issues Many commercial real estate leases include mandatory ADR provisions, and these provisions are generally enforceable under Florida law. However, these clauses are frequently subject to exclusions—which typically allow the lessor to pursue injunctive relief and other remedies in court when necessary. If your company is facing a commercial lease dispute, a Miami commercial real estate attorney at Edelboim Lieberman can determine what options... - Published: 2022-09-21 - Modified: 2026-10-23 - URL: https://elpllc.law/commercial-litigation/fraud-litigation/ Miami Fraud Lawyer for Fraud Litigation Most businesses operate with integrity and legitimacy to protect their reputation and the company in future transactions. Unfortunately, some enterprises engage in fraud at the expense of other businesses and individuals which causes some unfortunate suffering. If your business has suffered from fraudulent misrepresentations, fraudulent inducement, embezzlement, larceny, theft, conspiracy, bribery, or any other type of fraudulent or unlawful activity, a Miami fraud lawyer can help protect your company and give you the best chance of a favorable outcome. What is Commercial Fraud Litigation According to A Miami Fraud Lawyer? Commercial fraud litigation involves any type of fraud suffered by a business or suffered by an individual that was defrauded by a business. Typically, fraud involves a misrepresentation that was reasonably relied upon, which causes someone to enter into a transaction or undertake some activity that causes damage to an individual or business. Companies and organizations engaging in business transactions are governed by certain laws that are intended to ensure business dealings are conducted in good faith and that misrepresentations are minimized. If you were involved in a transaction which resulted in losses stemming from a misstatement or misrepresentation of fact made during the course of the transaction you may have a claim for fraud under Florida law. Types of Commercial Fraud Litigation A Miami Fraud Lawyer Can Help You With When a business or individual has been victimized by another business or individual that engaged in unfair methods of competition or deceptive, unconscionable, or unfair acts or practices in the conduct of commerce or trade, fraud may have occurred, and you should consult with a Miami fraud lawyer to assess your rights. There are many different types of commercial fraud cases that are heard in Florida’s business courts every year. Some of the most common types of disputes involving fraud are as follows: Fraud In the Inducement Fraud in the inducement involves making false or misleading statements to cause another party to enter into a binding agreement. To have a claim for fraudulent inducement, a party must be able to demonstrate that it relied on a false or misleading statement when deciding to enter into the contract. While “Integration” clauses in commercial contracts typically bar parties from citing pre-contract statements as a defense against enforcement, the fraudulent inducement doctrine provides an exception in appropriate cases. Fraudulent Misrepresentation Fraudulent misrepresentation claims are similar to fraudulent inducement claims, but they are not restricted to cases involving false and misleading statements made prior to contract execution. If a party to a contract makes a false or misleading statement in an effort to avoid an obligation to perform or being held in default, for example, then the counterparty can hire a Miami fraud lawyer to pursue a claim for damages or equitable remedies. Negligent Misinterpretation While fraudulent misrepresentation claims generally require evidence that the defrauding party knowingly made a false or misleading statement, knowledge of falsity is not necessarily required in all cases. Negligent misrepresentation claims are based not on a party’s knowledge (or constructive knowledge), but rather on the party’s breach of a duty of care to avoid material misstatements or omissions. Fraudulent Transfers and Conveyances Fraudulent transfers and conveyances can give rise to creditor claims in bankruptcy. Under the U. S. Bankruptcy Code, bankruptcy debtors (and debtors that are at risk for bankruptcy) are prohibited from conducting transactions that are intended to, or, in some cases, that have the effect of depriving creditors of opportunities to recover funds or other assets through the bankruptcy process. While it can be difficult to unwind fraudulent conveyances in... - Published: 2022-09-21 - Modified: 2023-03-06 - URL: https://elpllc.law/real-estate/foreclosure/ Foreclosure Litigation Commercial foreclosures can be very complex cases. If you are involved in a commercial foreclosure case it is essential that you have an experienced Miami commercial real estate lawyer assisting you. A Miami foreclosure lawyer can guide you through the process, advise you of your legal options, and give you the best chance of a successful outcome. The Commercial Foreclosure Process in Miami All commercial foreclosures begin with the lender filing a complaint with the clerk of the court. Within the complaint, the lender will seek a foreclosure on the property and damages they incurred as a result of the defaulted loan. The lender may also include a receivership clause that allows a receiver to take control of the property and the assets related thereto. Once the complaint is filed, the lender will then serve you or your business with a copy of a summons and the complaint. You have 20 days to respond to the complaint and if you do not, the lender will likely obtain a default judgment of foreclosure. After a default judgment has been issued, it is extremely difficult to defend the case. Even if you respond to the lawsuit, the lender will still likely try to obtain a summary judgment from the court. They will argue that there are no arguments pertaining to the facts of the case and the law and so there is no need for a trial. If there is a question of fact, the borrower may file an affidavit in opposition to the lender's motion for summary judgment and will prevent the foreclosure of your property. The lender will not be able to foreclose the property unless they prevail at trial and are able to prove their case. Defenses to Commercial Foreclosure Facing a commercial foreclosure is scary, but it is not hopeless. There are many defenses available that will allow you to challenge the case of the lender. The most common defenses used in commercial foreclosure cases are as follows: Usury or the lender charged an unreasonably high-interest rate The absence of a default The statute of limitations has expired Fraudulent inducement Lack of notice or defective notice The lender cannot prove they own the loan After a Miami foreclosure lawyer has reviewed the facts of your case, they will determine which defense strategy is most appropriate for your case. Call Our Foreclosure Lawyers in Miami Today Facing foreclosure is a frightening prospect for anyone, but when the property of your business is at stake, it may seem as though your entire life is on the line. At Edelboim Lieberman our Miami foreclosure lawyers know the best defenses available that can protect your assets, your business, and your family. Call us today at (305) 768-9909 or fill out our online form to schedule a free and confidential consultation with a Miami commercial real estate lawyer and to learn more about the legal options available to you. - Published: 2022-09-03 - Modified: 2026-03-24 - URL: https://elpllc.law/commercial-litigation/shareholder-disputes/ Discuss Your Options with an Experienced Miami Shareholder Dispute Attorney Disputes between shareholders can disrupt a company’s operations, and in some cases, they can threaten a company’s viability as a going concern. But, regardless of the issues at hand, in almost all cases a certain and cost-effective outcome will be in the best interests of all parties involved. If you are dealing with a dispute as a shareholder, we can help, and we encourage you to speak with an experienced Miami shareholder dispute attorney at Edelboim Lieberman. We handle all types of shareholder disputes in South Florida. Whether you need to protect your company’s interests or you are facing allegations of misconduct as a shareholder, we can help you make informed decisions focused on protecting your investment. When you schedule a complimentary consultation, one of our attorneys will sit down with you to go over your options in detail, and we will give you the information you need to make sound decisions going forward. Our Miami Shareholder Dispute Attorneys Represent Shareholders and Companies in All Types of Shareholder Disputes Shareholder disputes can involve a variety of complex issues. This includes not only complex legal issues but complex factual issues as well. In fact, in many cases, it will be a misunderstanding or conflicting interpretation of the facts that lead to a dispute among shareholders. In these scenarios, an amicable solution is often possible, and, with the right approach, shareholders can resolve their disputes with minimal long-term ramifications. Of course, not all shareholder disputes are so straightforward. Many are highly contentious, and many involve millions—if not tens or hundreds of millions—of dollars in shareholder value. In these cases, achieving a favorable result is often a much more complicated and nuanced process, and each party must work with a highly experienced Miami shareholder dispute attorney to ensure that it is acting with its best interests in mind. At Edelboim Lieberman, we represent shareholders and companies in disputes involving: Breach of Shareholders’ Fiduciary Duties Shareholders owe fiduciary duties to their companies, and when they breach these duties, other shareholders can hold them accountable. While fiduciary breaches in the corporate context can take many different forms, some examples of claims we see regularly include: Failure to act in accordance with a shareholder’s duty of loyalty Failure to perform a shareholder’s obligations with due care Misappropriation, embezzlement or theft of corporate assets Tortious interference with corporate business opportunities Self-dealing and conflict-of-interests transactions Breach of Shareholder Agreements Shareholder agreements impose numerous obligations in addition to shareholders’ fiduciary duties of loyalty and care. When shareholders breach their contractual obligations, they can face injunctive enforcement as well as liability for damages. Some common examples of shareholder breaches include: Acting beyond the scope of a shareholder’s authority Using corporate assets for impermissible purposes Failing to follow procedures for corporate decision-making or dispute resolution Failing to make required capital contributions Failure to fulfill a shareholder’s responsibilities in an executive capacity Shareholder agreements frequently include mandatory mediation or arbitration clauses (or both), and, as a result, many breach cases are subject to one or both forms of alternative dispute resolution (ADR). However, there are exceptions, and when a shareholder’s breach causes, or threatens to cause, immediate and irreparable harm to the company, the company’s other shareholders can pursue appropriate equitable remedies (i. e. , an emergency injunction or temporary restraining order) in court. Shareholder Deadlocks Deadlocks are among the most common reasons for shareholder disputes. When shareholders cannot reach the level of consensus needed to make a corporate-level decision, they may have no practical choice but to pursue dispute resolution mechanisms.... - Published: 2022-05-27 - Modified: 2023-03-06 - URL: https://elpllc.law/real-estate/escrow-disputes/ A Miami Escrow Dispute Attorney Can Help You Resolve Your Conflict While most real estate transactions successfully go to closing, every now and then something goes wrong, and one of the parties refuses to complete the sale. Most of these disputes revolve around who is entitled to the earnest money deposit being held by the escrow agent. These disputes can range from mild inconveniences that are quickly resolved to major headaches that can become quite difficult to untangle. If you have found yourself engaged in an escrow dispute and are not sure what to do, an experienced escrow lawyer can help you get it resolved quickly and cost-effectively. We Represent Buyers, Sellers, Escrow Agents and Other Interested Parties in Disputes Arising Out of Real Estate Transactions in Miami Escrow disputes involving residential and commercial real estate transactions can involve a variety of complex issues, and the options that are available for resolving these disputes depend on the nature of the transaction, the language of the parties’ agreement, and various other factors. As a result, experienced legal representation is required. At Edelboim Lieberman, we have significant experience representing clients in escrow disputes in Miami. If you or your company is facing a dispute, we can help you make informed decisions, and we can fight for a favorable outcome considering the specific circumstances at hand. When Is Legal Action Necessary? Oftentimes, it will be in all parties’ best interests to resolve an escrow dispute without resorting to litigation. We understand the practicalities involved when real estate transactions start to break down, and we know that our clients can have varying desired outcomes depending on the circumstances involved. While legal action will be necessary in some cases, negotiation and mediation can be highly effective tools, and we have had significant success helping our clients resolve escrow disputes out of court when warranted. Let an Attorney Review Your Contract When one party refuses to close for whatever reason, the best outcome is that the parties agree on who should keep the earnest money deposit. Escrow disputes arise when the parties cannot agree as to who should keep the deposit. Without an agreement between the buyer and seller, the escrow agent typically refuses to release the funds to either party. As a result, the question then becomes how to get the dispute resolved so that the appropriate party can receive the funds. The short answer to the question is that the real estate contract should control how the dispute is resolved. Most realtors use a standard contract that includes a provision controlling how escrow disputes will be resolved. However, it is important to note that the process can differ depending on who you use as an escrow agent. Specifically, the dispute will be overseen by the Florida Real Estate Commission if you use a real estate broker as your escrow agent. An escrow dispute lawyer can review your contract and determine what steps must be taken in order to resolve the conflict. Common Issues in Escrow Disputes Escrow serves a critical purpose in residential and commercial real estate transactions. When funds, documents or other assets are placed in escrow, they are beyond the reach of both the buyer and the seller until certain conditions are satisfied. In a typical scenario, a buyer will place a deposit in escrow, and if the transaction goes forward, the seller will receive the escrowed funds at closing. But, if the transaction does not move forward (i. e. , if an inspection reveals previously unknown issues with the property), then the buyer will be entitled to a return of the... - Published: 2022-03-28 - Modified: 2026-10-23 - URL: https://elpllc.law/real-estate/partition-actions-in-florida/ Partition Actions in Florida What is a Partition Action? A partition action is a lawsuit between co-owners of real property who cant agree as to any aspect of the management of the property, or for example, whether to sell the real property. Partition actions are governed by Chapter 64, Florida Statutes. Typically, partition actions are used by one owner of real property, against another or others, to force a sale or a physical division of the real property (if possible). The Different Types of Partition Actions Florida Law distinguishes between three different types of partition actions: (1) partition by physical division, (2) partition by sale, and (3) partition by appraisal. Partition by physical division is generally applied to undeveloped rural land, and even then, rarely used; this is because it is difficult, if not practically impossible, to physically divide a home or building. Florida courts will not typically order this type of partition if it might cause one of the co-owners to get a portion of land that is less in value than the share of money which would be obtained through sale of that same portion of the land. The second type of partition, partition by sale, is the most common type of partition action. If partition by sale is ordered by the court, then the co-owned land will be sold, and under court supervision if necessary. It can be sold by the co-owners at a private sale or at a public auction, and the proceeds of the sale are split according to each co-owners percentage ownership of the real property. Lastly, if partition by appraisal is granted by the court, then the co-owner(s) who wish to do so may buy the percentage of the property from the other co-owner(s) at the price the court provides by appraisal. When is a Partition Action Necessary? The most common scenario involving partition actions happens when family members co-own real estate, or when an unmarried couple jointly own property, or when business partners jointly own real estate. If in each of the scenarios described above the co-owners agree as to how to manage or whether to sell the property, then of course a partition action will not be necessary. If however there is disagreement as to how to manage or whether to sell the property, any co-owner can file a lawsuit for partition to force a sale or a buy out of the property. Typically, partition actions are necessary after a probate proceeding where real property owned by a decedent is passed on to the heirs who disagree as to whether to sell or how to manage the real property. How to File a Partition Action When two or more joint owners of a real estate property cannot come into an agreement regarding the sale of the property, one of the owners may file a partition lawsuit to enforce the sale of the said property. Under Florida law, when filing a partition lawsuit, it is important to remember that pursuant to Chapter 64. 022 (link), Florida Statutes, a partition suit must be filed in the county where the property is located. When filing a partition action lawsuit, all the parties including owners, lienholders, lenders, and holders of future estates that have or claim to have the interest in the property should be named in the partition suit. At least one of the joint owners has to file partition action for a lawsuit to get started, and when they do so, the other co-owners and lienholders become defendants in the case. The Partition suit then proceeds in the same way a standard civil... - Published: 2021-09-20 - Modified: 2023-05-05 - URL: https://elpllc.law/commercial-litigation/fiduciary-duty/ Our Miami Breach of Fiduciary Duty Lawyer Understands What's at Stake When a business or individual places their trust and confidence in others to act in their best interests it may create what is called a fiduciary relationship. When another person fails to exercise their obligations as a fiduciary by exercising reasonable prudence or care, they may have breached their fiduciary duty. If someone has breached their obligation to your company, speak to a Miami breach of fiduciary duty lawyer today that can help with your claim. Breaches of fiduciary duty claims are serious allegations and individuals and business owners that file claims against the party that was responsible for the breach must understand the intricacies in this area of law. Often such allegations can be very contentious and life altering for the individuals that accused of breaching their fiduciary duties. Typically, parties that have fiduciary duties carry insurance to protect themselves and their businesses from breach of fiduciary duty claims. Through a successful claim, business owners can recover civil damages for any losses they sustained as a result and it is common for such losses to be paid by insurance carriers. What is a Fiduciary Duty? The foundation of a fiduciary relationship occurs any time one party places their trust in another, and that second party fully accepts and acknowledges the responsibility. In some cases, a contract is required to establish the fiduciary relationship. In other cases, certain relationships imply a fiduciary duty. For example, an accountant or a lawyer always has a fiduciary duty to their clients. Other circumstances of fiduciary relationships may include financial advisors, investment professionals, auditors, tax professionals, members that serve on a board of directors of a company, certain officers of a company, trustees of a trust or representatives of an estate. When is a Fiduciary Obligation Established? Fiduciary obligations are established in a number of situations, including attorney-client relationship, and executor-heir relationships. In business situations specifically, fiduciary obligations are established between business partners, corporate officers and shareholders, and more. Sometimes these obligations are outlined in a contract and other times they are not. A Miami breach of fiduciary duty attorney with our firm can help you establish whether fiduciary duty exists and if a breach of fiduciary duty has occurred. How to Prove a Breach of Fiduciary Duty Claims Entities and individuals may breach their fiduciary duty in a verity of ways, depending largely on the type of relationship between the different parties. Generally speaking, a breach of fiduciary duty occurs when one party trusted to act in the best interests of another violates that trust and acts in their own best interest. To prove a breach of fiduciary duty, you must establish the following: One party had a fiduciary duty to you, That party breached their fiduciary duty, and You suffered damages as a result of the breach A Miami breach of fiduciary duty lawyer that can help you prove these important elements of your case. The amount of damages you may receive will largely depend on the amount of losses you sustained as a result of the breach of duty. Our Miami Breach of Fiduciary Duty Lawyers in Miami Can Assist You If you have suffered damages from a breach of fiduciary duty, call our seasoned breach of fiduciary duty attorneys at Edelboim Lieberman today. After reviewing the facts of your case, we will devise an effective strategy for moving forward that will give you the best chance of success. Call us today at (305) 768-9909 or contact us online to schedule a consultation. - Published: 2021-09-20 - Modified: 2023-03-06 - URL: https://elpllc.law/commercial-litigation/negligence/ Miami Negligence Lawyer Often when people think of lawsuits involving negligence, or carelessness, they think of when one person files a claim against another after an accident. This area of law is known as personal injury, but negligence claims can arise in commercial litigation, as well. Companies can become victims of negligence as well, such as when they are harmed by a defective product or inadequate performance by a contractor. Businesses also find themselves defending against these claims when someone becomes hurt, usually on the property of the business. A Miami negligence lawyer can help in either case and give you the best chance of a favorable outcome. Company vs. Company Negligence Claims There have been many examples of negligence claims involving one business suing another in Miami over the years. After Hurricane Irma, for example, several lawsuits involving crane collapses emerged. These lawsuits claimed that the cranes were defective and should have been able to withstand much higher winds than they did. When they failed to withstand the hurricane winds because they were faulty, they collapsed and caused serious injuries and property damage. Negligence claims involving two companies are not very different from claims involving private citizens. The only unique factor is that companies typically have more resources, but the same laws apply and the procedure is largely the same. For example, under the statute of limitations in Florida, companies suing another business have only four years to file their claim or they will forfeit any right to recover damages. Defending Against Negligence Claims Businesses operate to provide their customers and clients with goods or services. They have a very high duty of care to these customers to ensure they are kept safe. Unfortunately, consumers sometimes file a lawsuit against the businesses they deal with, even when the enterprise did not act negligently. There are defenses to these types of claims against a business, and it is important to work with a Miami negligence lawyer that knows what those are. For example, if you warned customers about a hazardous condition on your property, but they ignored your warnings, that could serve as a defense. Additionally, if the customer was partly at fault for the accident, that could also result in a reduction of the damages you have to pay, or shield you from liability altogether. For example, if you created a product and someone was hurt while not using it in the manner it was intended, that could protect you in a liability claim. After reviewing the facts of your case, a Miami negligence lawyer can advise on the best defense possible. Call Our Negligence Lawyer in Miami Today Whether your company has been the victim of another person’s negligence, or you are facing a potential claim, our Miami negligence lawyer at Edelboim Lieberman Oshinsky can provide the sound legal advice you need. Call us today at (305) 768-9909 or fill out our online form to schedule a free and confidential consultation and to learn more about how we can help. - Published: 2021-09-20 - Modified: 2026-03-24 - URL: https://elpllc.law/commercial-litigation/partnership-disputes/ Partnership Disputes Talk to a Miami Partnership Dispute Attorney in Confidence Disputes among business partners are common. As businesses grow and new opportunities arise, partners’ differing visions can lead to disagreements that extend beyond normal and healthy constructive dialogues and that devolve into disputes that disrupt the partnership’s day-to-day operations. When partners push their business relationship to the brink, salvaging the partnership—or targeting a favorable exit—requires the advice and representation of an experienced Miami partnership dispute attorney. Partnership disputes can involve other issues as well. From the theft of partnership assets to the diversion of partnership opportunities, circumstances in which one partner acts in his or her own best interests rather than the best interests of the partnership also frequently lead to disputes. These circumstances also require skilled and strategic legal representation, and partners must work closely with their counsel to make the right decisions at the right times. Legal Representation for Contentious and High-Risk Partnership Disputes At Edelboim Lieberman, our attorneys rely on decades of relevant experience to help partners protect their investments. We represent partners and partnerships in all types of disputes in South Florida. Whether your goal is to salvage your partnership or exit the business and move on, we can execute an effective dispute resolution strategy focused on your specific goals and taking into account the unique circumstances at hand. We handle all types of partnership disputes, including (but not limited to) those involving: Disagreements Regarding Partnership Direction, Vision and Management Most partnership disputes involve disagreements regarding the partnership’s direction, vision, or management. If partners cannot agree on how to run their business, the business can come to a standstill, and it can lose opportunities as the partners remain at odds. When these types of disputes arise, the partners must decide whether they are willing to work together to preserve the partnership or if it is time to go their separate ways. Misappropriation of Partnership Assets Misappropriation of partnership assets is another common trigger for partnership disputes. Whether a partner embezzles funds, steals partnership property, or otherwise defrauds the partnership, taking appropriate legal action can be essential for recovering the misappropriated assets and preventing recurrence in the future. Diversion of Partnership Opportunities Diversion of partnership opportunities is an issue that most frequently arises when one partner operates another business or seeks to establish an independent competing company. Also known as tortious interference, diversion of partnership opportunities is a form of fraud that entitles the partnership to clear remedies under Florida law. Breach of Partners’ Fiduciary Duties Under Florida law, partners owe various fiduciary duties to the partnership. These include a duty of care and a duty of loyalty. Not only do these duties prohibit partners from misappropriating partnership assets and interfering with partnership opportunities, but they give rise to claims in various other circumstances as well. These circumstances can range from making negligent and uninformed business decisions to improperly managing the partnership’s finances. Breach of the Partnership Agreement Partnership agreements typically impose a broad range of obligations on the partners. When one or more partners breach their obligations, the partners who are negatively impacted can pursue claims in their individual capacities, on behalf of the partnership or both. At Edelboim Lieberman, we have extensive experience handling these types of disputes, and a Miami partnership dispute attorney at one of our South Florida offices can help you decide how to move forward. Partner Termination and Buy-Out Disputes Disputes also frequently arise when one or more partners try to force another partner out or when partners run into issues during buy-outs. We have significant experience in both of... - Published: 2021-09-20 - Modified: 2023-03-06 - URL: https://elpllc.law/commercial-litigation/corporate-disputes/ Miami Corporate Disputes Lawyer For the most part, agreements and contracts between different parties in a business relationship go smoothly. Still, even with the best efforts, disputes still sometimes arise about the terms of the agreement and a resolution is not easily attainable. In these cases, it is important to work with a Miami corporate disputes lawyer that will aggressively pursue the best outcome for the company and protect your best interests. Common Corporate Disputes Any dispute that occurs within a corporation is a corporate dispute. These can include disagreements that are common in any business, such as breach of contract or partnership disputes. However, corporate disputes can also involve disagreements among shareholders. The shareholders may have a disagreement with the owner of the company about how they are running the business, or they may have a dispute with other shareholders. Sometimes, allegations of fraud or other wrongdoing may arise. How to Avoid a Corporate Dispute Corporate disputes can be very destructive for a business, so it is important to take some important steps to avoid them from occurring. These include: Create agreements in writing that govern the operation of the business. Agreements with clients, suppliers, contractors, shareholders, and others should always be in writing. Speak to an attorney that can review these contracts for you. Carefully read and ensure you understand any agreement you are signing, and how it impacts your business. Fulfill all obligations outlined in the agreement. As soon as you believe a corporate dispute may arise, it is important to speak to a business attorney. How to Resolve Shareholder Disputes Like any other type of dispute that occurs within a business, a shareholder dispute can have disastrous impacts on your business. Fortunately, there are many ways to resolve these disputes, which include: Delay the dispute until a general meeting, where it can then be resolved. Appoint an uninterested board advisor or director to resolve the dispute. Appoint additional statutory directors that can provide a new perspective and help you avoid deadlock. Call a general meeting of the shareholders for the consideration of dismissing a director. If applicable, terminate the employment of a shareholder through a settlement agreement. Speak to an objective mediator that can resolve the dispute. Arrange for another shareholder, the company, or an external buyer to buy out another party, according to the governance of the shareholder agreements. Sell the company and distribute the proceeds among the shareholders. A corporate dispute may also need to be resolved through a lawsuit and it is of particular importance in this case that you work with a skilled attorney. Call Our Corporate Disputes Lawyer in Miami Today Working with an experienced Miami corporate disputes lawyer can be the difference between the success or failure of your company in your legal dispute. At Edelboim Lieberman Oshinsky, PLLC, we will listen to your needs, advise on the possible resolution methods, and pursue the remedy that is best for you and your business. Call us today at (305) 768-9909 or contact us online to schedule a free consultation and to learn more about how we can help. - Published: 2021-09-20 - Modified: 2023-04-10 - URL: https://elpllc.law/commercial-litigation/ucc-sale-of-goods-secured-transactions/ Miami UCC Sale of Goods & Secured Transactions Lawyer The Uniform Commercial Code (UCC) was established over 60 years ago and since that time, it has undergone much transformation and has been adopted by every state. The law is intended to unify the laws governing commercial transactions and sales. The UCC is very broad and covers many different aspects of the selling of goods. Most business owners are not familiar with every law within the Code, even if they know the general laws that apply to their enterprise. Given that every state implements their own laws and opinions, it is also easy to become confused about which laws apply in Florida. It is important to work with a Miami UCC sale of goods and secured transactions lawyer that has the necessary experience with this type of commercial litigation. What Does Article 2 and Article 3 of the UCC Cover? Commercial law and the business practices of merchants selling and leasing goods is codified in Articles 2 and 3 of the UCC. It is not uncommon for business owners to overlook certain issues and contract terms, and these sections of the UCC try to bridge the gap. The UCC laws will only apply if the parties entering into the transition opt out of the UCC and outline their own terms. These laws apply to nearly any type of good or product, which may include: Business equipment Building supplies Clothing, apparel and accessories Consumer products Computers and electronic devices Children’s toys Home appliances Heavy machinery Motor vehicles and their parts Regardless of the type of goods or products a business sells, it is likely that at least a portion of the UCC governs the sale and transaction of it. It is for this reason that all business owners should be aware of the UCC and the laws it contains. Issues with the UCC While the UCC is intended to bring more governance to business transactions, it is not without its own issues. The Code contains fairly vague language such as “reasonable” and “industry standards. ” Terms such as these can be interpreted in a number of ways and certain interpretations may hurt you or your business. It is important to work with a Miami UCC sale of goods and secured transactions lawyer that can help ensure the terms of the UCC work in your favor. An experienced attorney will also protect your rights and properly represent your best interests. Call Our UCC Sale of Goods & Secured Transactions Lawyer in Miami If you have an issue under the UCC that requires litigation, our Miami UCC sale of goods and secured transactions lawyer can assist with your case. At Edelboim Lieberman Oshinsky, PLLC, we have the necessary experience to represent you during litigation and we will work tirelessly to help you secure the favorable outcome you are after. Call us today at. (305) 768-9909 or fill out our online form to schedule a free and confidential consultation and to learn more about how we can help with your case. - Published: 2021-09-20 - Modified: 2023-04-10 - URL: https://elpllc.law/commercial-litigation/debt-collection-enforcement-of-judgment/ Debt Collection/Enforcement of Judgment Lawyer Even after obtaining a judgment, the collection of a debt can sometimes remain challenging. Judgment debtors may try to hide their assets, have assets that are difficult to reach or liquidate, or judgment debtors may simply refuse to comply with the court orders. When this is the case, you need the help of a debt collection and enforcement of judgment lawyer that can advise you of your legal options and protect the best interests of you and your company. Enforcing Debt Collections Sometimes filing a lawsuit and obtaining a judgment is the easy part of the process. Afterward, you may find it difficult to enforce the judgment and collect the money you are owed. You have a number of collection options available, which may include: Wage garnishment: A wage garnishment requires a borrower’s employer to withhold a portion of their paycheck and direct it to you until a certain date, or until you have recovered the entire debt. Bank Garnishment: Bank garnishments, also sometimes referred to as a bank levy’s, are a process typically done after obtaining a judgment. By this process a court directs a bank to freeze a bank account. The bank is then required to provide notice of the assets it is holding. Thereafter, a judgment holder may apply to the Court to withdraw the assets that have been identified by the bank to satisfy the judgment. Execution and replevin: Courts can direct a sheriff to seize assets of the judgment debtor and conduct a sale of such assets to satisfy the debt. Call Our Debt Collection - Enforcement of Judgment Lawyer in Miami Today Obtaining a judgment is a victory, but it does not always mean that the job is done. If you need to enforce a judgment, our debt collection and enforcement of judgment lawyers can help. At Edelboim Lieberman, our skilled attorneys have the necessary experience to enforce a judgment and help you collect a debt and will help you recover what you are rightfully due. Call us today at (305) 768-9909 or fill out our online form to schedule a free and confidential consultation and to learn more about how we can help. - Published: 2021-09-20 - Modified: 2026-10-23 - URL: https://elpllc.law/real-estate/ Miami Real Estate Attorney for Litigation & More Regardless of the type of real estate dispute you are in, our real estate lawyers can provide the sound legal advice you need. These matters often require a delicate balance between litigating aggressively and finding a practical cost-effective solution. Examples of the real estate disputes a Miami real estate attorney from our firm can assist our clients with are: Contract Disputes Contracts form the basis of all real estate deals and these agreements outline the conditions, terms, and remedies available to everyone involved in the transaction. When disputes arise, early intervention is crucial to preserve the relationship and to prevent the dispute or contract breach from escalating. A real estate lawyer can work with you during the negotiation with other parties to the transaction and represent you during all stages of your dispute, including pre-suit negotiations, litigation, mediation and trial. We advise and represent buyers, sellers, lenders and other clients in real estate contract disputes involving issues such as: Failure to Disclose – Many real estate contract disputes arise out of the seller’s failure to disclose known property defects. If a seller misrepresents the condition of the subject property or misrepresents its knowledge of the condition of the subject property, this can (and often will) lead to litigation. Breach of Representations and Warranties – Sellers and buyers will both typically make representations and warranties in a real estate purchase contract. For example, a seller will typically represent that it owns the subject property, and the purchaser will represent that it has (or will use good faith efforts to obtain) the funds needed to execute the purchase. Breaches of these representations and warranties frequently lead to both informal and formal dispute resolution proceedings. Fraud – In some cases, a party’s misrepresentations or omissions will rise to the level of fraud. When a buyer or seller engages in fraud, the defrauded party will typically need to work with an experienced Miami real estate lawyer to secure an appropriate legal remedy. Failure to Satisfy Contingencies – In many cases, failure to satisfy a contingency will simply result in contract expiration. However, if a party fails to undertake reasonable efforts to satisfy a contingency in good faith (i. e. , a buyer does not apply for financing), or if the parties disagree as to whether a contingency has been satisfied, this can lead to a dispute that requires resolution. Failure to Close – In some cases, one party simply won’t show up to the closing table. If you have a contract for the sale of a piece of property and the buyer or seller has failed to close, you will want to speak with a Miami real estate attorney promptly. The available remedies in real estate contract disputes vary depending on the circumstances involved. In some cases, the buyer or seller may be entitled to monetary damages. In others, the buyer or seller may be entitled to force the transaction to go through (a remedy known as “specific performance”). Termination of the contract will be an appropriate remedy in some cases as well and will often be accompanied by the breaching party’s payment of monetary damages. Additionally, many real estate contracts include provisions for liquidated damages or damages in a predetermined amount, and the availability of these damages will often be a key factor in settlement negotiations. Landlord/Tenant Disputes Disputes between landlords and tenants are very common. These disagreements typically revolve around non-payment of rent, non-compliance with covenants contained in the lease, property damage, and other or breaches of a lease agreement. In addition to rent... - Published: 2021-08-18 - Modified: 2026-09-24 - URL: https://elpllc.law/testimonials/ Testimonials I used this law firm to evict my tenant on Hollywood beach. They were running an daycare business out of the apartment we rented and they were subletting. I found this law firm locally on google and called them and retained within a couple hours. Eviction was done in 28 days. Would use them again. Alexander K. One of my colleagues called this firm for information on doing a residential eviction for a single family home she rented in Hollywood FL. The eviction lawyers were very professional and extremely knowledgeable. Call them if you have a landlord tenant issue. Nicolas W. Great and fast services. Like to work with professionals who value your time and budget. Roman K. I used this law firm to advise me on commercial closings and landlord-tenant law. These attorneys are knowledgeable and efficient. Highly recommend. Bryan S. I have had the opportunity to work and against the partners at this firm and recommend without hesitation. Not only brilliant legal minds, but are willing to out work other firms. Highly recommend! Chad V. They have been professionally handling my situation from the beginning, either them or their secretary generally gets back to me in a timely manner. You may need to remind them after a couple of days but this is covid time so they're very busy with backups. I'm using them for Unlawful detainer and I dont have any complaints. Paige J. I used this law firm evict my tenants in Miami, Boca and Hollywood. None of them paid due to COVID. We were able to get them evicted in the middle of COVID which was good as we were having trouble making mortgage payments. These lawyers are professional, smart and kind. I recommend to any landlord in south florida. Iam V. Used this form for an section 8 eviction. We got the final eviction judgment faster than I expected... about 22 days so very happy with the result. Only issue is that in dade county, even with a final judgment of eviction, the sheriffs are not enforcing court orders... we didn’t end up needing the sheriff for removal though as the tenant left. Satisfied with the result. Thanks Vladislav S. - Published: 2021-08-18 - Modified: 2025-07-11 - URL: https://elpllc.law/commercial-litigation/breach-of-contract/ Miami Breach of Contract Lawyers Litigating Contract Disputes for Plaintiffs and Defendants in South Florida Every day, companies enter into contracts, from sales of goods and services to purchases and leases of equipment, commercial space, and real estate. Contract disputes can arise over the interpretation of terms and whether one side is performing its end of the bargain. At Edelboim Lieberman, you’ll find a team of experienced contract drafters and negotiators who understand how contract terms are meant to be interpreted and enforced. Our skills as contract drafters and background in commercial litigation make us perfectly situated to litigate and resolve breach of contract disputes. Bring your South Florida contract dispute to a Miami breach of contract lawyer at our firm, and let us chart a path to resolving your matter efficiently and effectively, with your rights protected and your goals achieved. What Makes a Contract a Contract? A contract is a legally enforceable agreement with rights and obligations for each contracting party. Certain elements must be present to make a contract valid; namely, there must be an offer, acceptance, consideration (exchange of value), and mutual assent. The contract must also be for a legal purpose, made by parties capable of contracting. Without all of these elements, a contract might not exist. Common law, case law, and specific statutes such as the Uniform Commercial Code (UCC) can govern whether any particular element is present and accounted for in a purported contract. When a dispute arises over the validity or enforcement of a contract, courts will look at the document itself to determine the intent of the parties. A whole body of law exists surrounding the question of whether extrinsic evidence (parol evidence) from outside the contract can be received by the court in interpreting the contract. Also, some contracts might not be in writing at all. Again, centuries of contract law, statutes and court cases answer the question of when a contract may be oral or must be in writing, as well as whether the existence of a contract is implied by the conduct of the parties regardless of whether they expressly entered into an oral or written contract. Material Breach A contract is violated or breached when one party fails to perform an obligation it has under the contract. However, not every breach is necessarily “material. ” Generally speaking, a “material breach” is one that goes to the heart of the contract or defeats its purpose. A material breach by one party can excuse the other party from its own obligations to perform. When one party breaches and the other party declines to perform, whether the breach was material can be a central focus of the litigation. Anticipatory Breach One party to a contract should not be expected to perform when it knows the other party will not perform. When one party indicates, either by words or action, that it does not plan on fulfilling its obligations under the contract, this repudiation or anticipatory breach can relieve the other party of its duty to perform, even if that party would otherwise be the first to perform its end of the bargain. A central issue in breach of contract cases involving an anticipatory breach is whether the alleged repudiation was express or unconditional and justified the other party’s nonperformance. Damages for a Breach of Contract Typically, a party harmed by a breach of contract can recover the actual damages or financial loss it has suffered. If the party suffered some special type of harm because of the breach, the party can recover those special or consequential damages as well. If... - Published: 2021-08-18 - Modified: 2025-07-11 - URL: https://elpllc.law/commercial-litigation/ Miami Commercial Litigation Attorneys Highly Skilled South Florida Business Litigation Law Firm Conflicts can arise in business among partners, between shareholders and directors, with customers or competitors, suppliers or vendors, and in countless other ways. What is important is for companies to have a Miami commercial litigation attorney they work closely with and whom they can trust to protect their interests in any commercial dispute. Competent business lawyers evaluate every dispute strategically by exploring various options for resolution, weighing benefits and risks, and working with clients to understand their needs and goals, including resolving the current dispute efficiently and effectively, preserving long-term business relationships, maintaining the company’s reputation and goodwill, and continuing to grow and thrive. This is the approach we take at the Edelboim Lieberman. We work closely with our clients to identify their goals and formulate a strategy to achieve them. Our South Florida commercial litigation attorneys have achieved sustained success in debt collection, partnership, and shareholder disputes, UCC sale of goods litigation, accounting and legal malpractice suits, and more. As solution-oriented and commercially-driven litigators, each Miami commercial litigation attorney at our firm knows how to litigate cases to create leverage and deliver results. Call Edelboim Lieberman for help with any commercial litigation matter in Miami or South Florida, including: Contractual Disputes and Litigation Breach of Fiduciary Duty Litigation Bad Faith Business Torts Restrictive Covenants LLC Member Disputes Fraud/Fraudulent Transfer Litigation Partnership and Shareholder Disputes Commercial and Residential Foreclosures and Evictions Attorney or Accountant Malpractice Non-Compete Litigation RICO Litigation UCC Secured Transactions or Sale of Goods Litigation Collections Litigation Deceptive and Unfair Trade Practices Bankruptcy Litigation Post-Judgment Collection and Enforcement Contract Disputes Our team of business lawyers includes practiced, experienced contract drafters and negotiators. We bring that experience to the table when it comes to enforcing, challenging, or defending contracts in a breach of contract action or other contract dispute. We represent business owners in all manner of contract disputes with employees, customers, vendors, suppliers, distributors, manufacturers, and the countless other parties companies contract with every day as they work to run and grow their businesses. Business Torts Disputes can arise among competing businesses or other parties that aren’t based on contract but instead involve allegations of fraud, unfair competition, or deceptive trade practices. Litigation can result in extensive monetary damages that go beyond any economic loss actually suffered, as well as injunctions that can restrain a business from engaging in certain activities. Our Miami commercial litigation attorneys represent plaintiffs and defendants in business litigation involving alleged fraud or other unfair or deceptive business practices. Commercial Collections Collecting on accounts receivable is an essential activity for any business, but it must be approached thoughtfully and skillfully with a full understanding of applicable laws and processes. Both federal and Florida laws set out numerous rules companies must follow when engaging in collections, and legal violations can be costly and completely frustrate the legitimate and vital business purpose of collecting a valid debt. Edelboim Lieberman takes a smart and strategic approach to collections, aggressively asserting your rights and protecting your interests while staying squarely within the bounds of applicable state and federal laws. UCC Litigation The Uniform Commercial Code is a large body of law governing a wide range of commercial activities, including the sale of goods (Article 2), negotiable instruments (Article 3), and secured transactions (Article 9). A thorough understanding of the UCC is necessary to interpret, challenge or enforce contracts and navigate litigation surrounding the sale or leasing of commercial goods or the granting of credit secured by personal property. Your Miami commercial litigation attorney will understand how... - Published: 2021-08-18 - Modified: 2023-04-10 - URL: https://elpllc.law/business-bankruptcy/assignment-for-the-benefit-of-creditors/ Assignment for the Benefit of Creditors Helping Florida business owners exit gracefully and move on with less time and hassle than bankruptcy An assignment for the benefit of creditors (ABC) is one way for an insolvent company to wind down its operations in an orderly fashion. Like a Chapter 7 business bankruptcy, an ABC involves selling the company’s assets and using the proceeds to pay off creditors, but without the stigma of a bankruptcy on their credit report or the mind of the public. The business attorneys at Edelboim Lieberman have successfully helped many South Florida companies with an assignment for the benefit of creditors. Learn more about ABCs below, and call Edelboim Lieberman in Miami or Fort Lauderdale to find out if an ABC is right for you. How does an ABC work? The owner of the company (the assignor) makes an assignment, or transfer, of company assets and debts to another company or law firm (the assignee). The assignee is then responsible to sell the assets and use the proceeds to pay off the creditors. By using an ABC, the assignor gets to move on quickly from the insolvent company without having to personally go through the process of liquidating assets and paying creditors or going through the Chapter 7 bankruptcy process. ABCs Under Florida Law Unlike a Chapter 7 bankruptcy, which takes place in federal bankruptcy court and is supervised by a federal bankruptcy trustee, ABCs are filed in and supervised by the Florida state courts. Florida Statutes Chapter 727 governs an assignment for the benefit of creditors. Following are some important points about the way ABCs operate in Florida: ABCs must be in writing. Florida statutes provide a sample form of assignment; the ABC should be in substantially the same form. An ABC represents an irrevocable assignment. The assignee files the assignment with the court, publishes a notice of the assignment as required by law and also notifies creditors of the assignment. In certain situations, the assignee can carry on the business for a period to maximize return. The assignee can reject an unexpired lease. The assignee can hire professionals as needed, such as accountants, appraisers, auctioneers, and attorneys, to assist in the liquidation of assets. The assignee can examine the validity and priority of claims and litigate disputed claims. The assignee can sue to enforce claims the assignee may have by virtue of the assignment or assign a cause of action to another party. The assignee must file interim and final reports with the court. Any monies left over after creditors are paid goes back to the assignor. Is an ABC better than bankruptcy? An ABC liquidates assets and winds down business operations similar to a Chapter 7 bankruptcy, and an ABC is conducted under court supervision like Chapter 7. However, an ABC can offer advantages over Chapter 7 in many instances. Importantly, an assignee typically gets a greater return when selling assets since the assignee is frequently knowledgeable about the industry and is often a skilled and experienced negotiator. Additionally, an assignee can continue to run the business as a going concern for a while and even sell it as such, which a bankruptcy trustee won’t do. ABCs also offer more privacy to the assignor, as opposed to going through the public court filings of a bankruptcy. And the ABC is faster for the assignor. The assignor makes the assignment and is done, rather than going through bankruptcy which can take months or years depending on the assets to be liquidated. On the other hand, an assignor does not get the benefit of the... - Published: 2021-08-18 - Modified: 2023-05-05 - URL: https://elpllc.law/business-bankruptcy/creditor-representation/ Let a Miami Creditors’ Rights Attorney Represent You in All Bankruptcy Matters Businesses struggling with debt or that have become insolvent and can't continue will seek protection and help through bankruptcy, often at the expense of their creditors. Business creditors are not without rights or power in a bankruptcy proceeding, however. Should they choose to do so, creditors can actively participate in the bankruptcy process, letting their voice be heard and protecting their interests to the extent permissible. From their offices in Miami and Fort Lauderdale, the business bankruptcy litigation attorneys at Edelboim Lieberman represent secured and unsecured creditors in Chapter 7, Chapter 11 and Chapter 13 cases in South Florida. Creditor representation in bankruptcy is just one more way we look out for our business clients and protect their rights and interests. If your business interests stand to lose because of another party's bankruptcy filing in Miami, call a Miami creditor's rights attorney at Edelboim Lieberman to discuss your options and decide whether and how to intervene to protect your rights. Below are some of the ways our lawyers can protect your rights as a creditor in a South Florida bankruptcy proceeding. Get relief from the automatic stay The moment a business files for bankruptcy, the court implements what is known as an automatic stay. This provision of bankruptcy puts an immediate halt to all collection efforts on the part of a creditor to collect on a debt owed by a party who has filed for bankruptcy. The automatic stay is a powerful tool and is one of the main protections offered by a bankruptcy filing. The automatic stay prevents a creditor from initiating or continuing any collection efforts, including lawsuits, collection of judgments, repossessions, foreclosures, placing or enforcing liens, garnishing wages, even making phone calls or sending letters demanding payment. The automatic stay is comprehensive and complete. The automatic stay is not, however, omnipotent. It is often possible for creditors to approach the court with a motion arguing for relief from the stay. If granted, the creditor can resume collection efforts while the bankruptcy is pending. Creditors who fail to seek relief from the stay risk having their debts adjusted, put on a payment plan, or discharged (eliminated). Take an active role in the meeting of creditors An early stage in the bankruptcy process is the meeting of creditors, also known as a 341 meeting after its section in the U. S. Bankruptcy Code. The meeting is held by the bankruptcy trustee, who invites the debtor's creditors to attend and question the debtor regarding issues such as the debtor's assets, liabilities, income, collateral property (for secured debts), and the debtor's ability or lack thereof to repay the debt. Our creditors' rights attorneys can counsel you on whether it would be beneficial in your case to attend the meeting of creditors and put questions to the debtor. If you decide to attend, your Miami creditor's rights attorney can prepare you for the meeting and attend with you or appear on your behalf. Participate in the formulation of the plan A crucial part of a Chapter 11 or Chapter 13 bankruptcy is the development of a plan of reorganization. Once the plan is approved by the bankruptcy court, creditors are obligated by law to abide by its terms, even if the plan dilutes their interest. Creditors have the right to participate in the plan's development if they choose. The Miami creditors' rights attorneys at Edelboim Lieberman can help you take an active role in the development of the plan and look out for your best interests. If a proposed plan... - Published: 2021-08-18 - Modified: 2023-05-05 - URL: https://elpllc.law/business-bankruptcy/adversary-proceedings/ Adversary Proceedings Miami Bankruptcy Litigation Attorneys Serving All of South Florida For the most part, bankruptcy operates like an administrative proceeding under judicial supervision, and most bankruptcy filers never see the inside of a courtroom. Although litigation is relatively uncommon in bankruptcy, it can and does happen for many different reasons. Lawsuits filed in a bankruptcy case are known as adversary proceedings. Since bankruptcy litigation is unfamiliar territory for many bankruptcy attorneys, if an adversary proceeding is part of your bankruptcy case, getting help from an experienced bankruptcy litigator is essential to your success. The Miami law firm of Edelboim Lieberman is staffed with experienced trial and litigation attorneys who fight for their clients in South Florida courtrooms every day. Our bankruptcy legal team is ready to handle every aspect of your business bankruptcy efficiently and effectively, including skilled and successful representation in any adversary proceeding that might arise. Call Edelboim Lieberman for help with your Miami bankruptcy or other business legal needs. What are adversary proceedings in bankruptcy? The adversary proceeding bankruptcy courts see most often is a lawsuit filed by a creditor arguing against the dischargeability of a debt. One of the most attractive features of bankruptcy for a debtor is the ability to have a debt discharged, meaning it is written off or wiped from the slate so that the debtor is no longer responsible to repay it. Not all debts are dischargeable, however. And even when a debt might otherwise be dischargeable, a creditor might initiate an adversary proceeding to argue the debt is not dischargeable in this particular instance. For instance, the creditor might allege that the debt was fraudulently obtained, that it was intentionally incurred in advance of a bankruptcy filing without intending to pay it back, or that it involved “willful and malicious” injury to persons or property. If a creditor wins an adversary proceeding over the dischargeability of the debt, the debtor will remain liable for the debt. However, if the creditor loses the proceeding and the judge decides the creditor was not substantially justified in challenging the discharge, the court can order the creditor to pay the attorney fees the debtor incurred to litigate the adversary proceeding. Creditors have 60 days from the first section 341 meeting of creditors to file an adversary proceeding or request an extension of time to file. Another common adversary proceeding is an avoidance action. In these cases, the trustee sues a party who received payment from the debtor before filing for bankruptcy to recover those funds and put them into the bankruptcy estate so the trustee can decide how to disburse them according to bankruptcy law. Avoidance actions might include alleged fraudulent transfers made to hide money from the trustee and creditors. Avoidance actions can also include so-called preferential transfers, where a debtor pays a creditor within 90 days before the bankruptcy (or one year in some cases) so the creditor receives more than it would have gotten in the bankruptcy, often to the detriment of similarly situated creditors. Parties sued by the trustee in an avoidance action might have valid defenses that would enable them to keep the payment from the debtor. Our bankruptcy litigation attorneys advise and represent creditors in these avoidance actions and make sure their rights are protected in bankruptcy if they are required to return the money or property that was paid to them before bankruptcy. Other types of bankruptcy adversary proceedings include: Fights between creditors over priority order or other matters The trustee asks the court to deny a discharge because the debtor has been accused of dishonesty or... - Published: 2021-08-18 - Modified: 2023-05-05 - URL: https://elpllc.law/business-bankruptcy/chapter-11/ Turn to a Miami Chapter 11 Bankruptcy Lawyer at Our Firm Helping Business Owners Succeed Throughout South Florida Our Miami Chapter 11 bankruptcy lawyers understand that bankruptcy isn't anybody's first choice, and it isn't anything business owners look forward to or anticipate when they are starting out. At the same time, bankruptcy isn't a dirty word, and it doesn’t spell doom or the end for a struggling enterprise. When Chapter 11 works as it should, companies exit bankruptcy leaner, stronger and more efficient than before, ready to take on the competition and become a profitable leader in the industry. Chapter 11 is a voluntary, strategic decision made by business owners facing significant debt and financial troubles. In South Florida, the bankruptcy litigation attorneys at Edelboim Lieberman in Miami and Fort Lauderdale work with you to develop a plan that helps you achieve your goals. Our experienced Chapter 11 lawyers can create a plan with you that is fair and equitable, considers the interests of your creditors and is as good or better for them than a Chapter 7 liquidation bankruptcy, is feasible and is developed in good faith. A Chapter 11 plan with these features is likely to meet your needs and be approved (confirmed) by the bankruptcy court. Chapter 11 bankruptcy is a complex procedure, and not all Chapter 11s succeed. Choose a law firm with a record of sustained success in successfully reorganizing under Chapter 11. In Miami and South Florida, choose Edelboim Lieberman to guide you and assist you through the Chapter 11 process. Should Your Company File for a Chapter 11 Bankruptcy? While filing for bankruptcy under Chapter 11 affords a variety of benefits under the right circumstances, it isn’t right for all companies. So, should your company hire a Miami Chapter 11 bankruptcy lawyer? Here is a non-exclusive list of factors that company leaders should consider when deciding whether to pursue a business bankruptcy under Chapter 11: 1. Will a Chapter 11 Filing Make Your Business Sustainable? Generally speaking, the purpose of filing for bankruptcy under Chapter 11 is to secure relief from unmanageable payment obligations. It does not eliminate the company’s debt. So, if your company can remain operational—and ideally grow—with a reorganized payment plan, then filing under Chapter 11 may be a good option. However, if reorganizing your company’s debts is not likely to lead to sustainability, then it may not make sense to pursue a Chapter 11 bankruptcy. 2. Does It Make Sense to Keep the Business Afloat? Even if a Chapter 11 bankruptcy may provide a path to sustainability, does it make sense to keep the business afloat? Or is reorganizing the business’s debts a temporary solution to a bigger problem? Are you still passionate about making the business succeed? Before investing time and money in a Chapter 11 bankruptcy petition, it is important to thoughtfully consider these types of questions. 3. Are There Other (More Desirable) Options Available? It is also important to consider whether your company may have more desirable options available. For example, if reorganizing your company’s debts isn’t likely to lead to long-term stability and growth, then it may be time to consider a Chapter 7 liquidation instead. Alternatively, renegotiating some (or all) of your company’s liabilities outside of the formal bankruptcy process could offer a more efficient solution. There are a variety of other options as well—all of which may make more or less sense depending on your company’s current financial circumstances and your business goals. 4. Are You Prepared to Deal with the Rules and Requirements of Chapter 11? Filing for business bankruptcy under Chapter... - Published: 2021-08-18 - Modified: 2024-11-26 - URL: https://elpllc.law/business-bankruptcy/chapter-7/ Miami Chapter 7 Bankruptcy Attorneys Helping South Florida Business Exit Gracefully and Make a Fresh Start Chapter 7 of the U. S. Bankruptcy Code applies to both consumer bankruptcies and business bankruptcies. Individuals and families, as well as corporations, partnerships, LLCs, and sole proprietorships, can benefit from Chapter 7 and make a fresh start with a clean slate, free from overly burdensome debt. Contact a Miami Chapter 7 bankruptcy attorney today. The South Florida business bankruptcy lawyers at Edelboim Lieberman in Miami and Fort Lauderdale can help you take advantage of the significant debtor protections Chapter 7 offers, including the automatic stay provision which puts an immediate stop to creditor harassment and all forms of collections, including lawsuits, judgments, liens, wage garnishments, foreclosures and repossessions. While the automatic stay is in place, Chapter 7 filers move forward through a process that eliminates (discharges) their unsecured debt so they can move out from under a mountain of debt and move on with their lives. Chapter 7 for Individuals A Chapter 7 consumer bankruptcy is open to individuals whose income level is below the state median for their household size or who qualify based on a means test that analyzes their income and expenses. The means test, however, does not apply to individuals who have debts that are primarily business debts. In their petition, Chapter 7 filers will list out their assets, income, monthly expenses, debts, exempt property, property sold or given away two years before the filing of the petition, and property owned and money spent during the preceding two years from the date of the filing of the petition. The bankruptcy trustee is authorized to take the debtor’s non-exempt property and sell it to pay off creditors. Once this property has been disposed of, any remaining unsecured debts are discharged, meaning the debtor is no longer responsible for paying them. Thanks to the many generous exemptions available under Florida law, an experienced Chapter 7 bankruptcy attorney can file a no-asset bankruptcy in most cases, meaning the consumer gets all their unsecured debts discharged without having to lose any property to the bankruptcy trustee. Chapter 7 for Businesses A business enterprise that files for Chapter 7 bankruptcy is usually closing up shop and chooses Chapter 7 as an orderly means of doing so. Companies that want to stay in business but are struggling with insolvency might choose Chapter 11 bankruptcy instead. Through Chapter 7, the bankruptcy trustee liquidates the company’s assets to pay off creditors. Chapter 7 can therefore be ideal for a struggling business with few assets but many debts and can help businesses avoid creditor harassment and lawsuits. Should I file for Chapter 7? Entrepreneurs are optimists by nature, and even when facing difficult times might be thinking of borrowing more money to cure their troubles or filing a Chapter 11 bankruptcy to reorganize their debt. But an infusion of cash is not always a magic bullet to the various issues a struggling business might be facing. Chapter 11, meanwhile, is complex and expensive. Closing the business might make the most sense, and Chapter 7 is often the most logical and practical way to do so cleanly and efficiently, without lingering liability. An alternative is to try and negotiate resolutions with each individual creditor without filing for bankruptcy. An experienced business bankruptcy and commercial litigation lawyer can sit down with you and analyze your situation, advise you of your options and help you craft the best path forward. 5 Factors to Consider When Evaluating a Chapter 7 Business Bankruptcy Filing If your business is struggling and you are contemplating... - Published: 2021-08-18 - Modified: 2026-03-27 - URL: https://elpllc.law/business-bankruptcy/ Let Our Miami Bankruptcy Litigation Attorney Help Your Business During Bankruptcy Proceedings Businesses that are struggling with debt or insolvency can often find relief and effective solutions under the U. S. Bankruptcy Code. Whether reorganizing debt under Chapter 11 or seeking a graceful exit under Chapter 7, bankruptcy offers powerful protections to business owners that lets them deal with existing debt and move on without the fear of constant harassment, collections or lawsuits from creditors. At the same time, the nation’s business bankruptcy laws protect creditors too. Creditors who take an active part in the bankruptcy process can protect their financial interests and ensure that they are treated fairly in any plan approved by the court. Our experienced bankruptcy litigation lawyers can help make it so. The business bankruptcy lawyers at Edelboim Lieberman have a long record of success helping business creditors and debtors in Miami, Fort Lauderdale and across South Florida. With our law firm’s experience in business bankruptcy, our attorneys can accurately assess your financial affairs and legal situation and help you find the option that makes the most sense for you. Whether you need to know if filing for bankruptcy is right for you or you need legal representation as a creditor in the bankruptcy process, our South Florida bankruptcy litigation lawyers can help. Comprehensive Business Bankruptcy Services in Miami and South Florida Our bankruptcy law firm provides a range of legal services to debtors and creditors alike. Some of these services include: Chapter 7 Bankruptcy Wind down operations in an orderly fashion by liquidating assets and using the proceeds to pay creditors in priority order. With your creditors on notice about the bankruptcy, you can complete the bankruptcy without further liability for any remaining debts. Exit Chapter 7 ready to try again with a new enterprise or find another occupation that interests you and suits you. In a Chapter 7 business bankruptcy, the bankruptcy trustee sells all of the company’s assets and then distributes the proceeds to the company’s creditors in accordance with the priority rules established under the Bankruptcy Code. While individuals who file under Chapter 7 can claim certain exemptions to retain some of their assets, this option is not available to corporations, partnerships and limited liability companies (LLCs). Although filing for a business bankruptcy under Chapter 7 effectively shuts down the company, it does not necessarily erase all of the company’s debts. If the proceeds from the sale of the company’s assets are insufficient to satisfy all debts, then creditors may still be able to pursue claims against the company’s former owners—whether based on personal guarantees or other grounds. As a result, it is particularly important that small business owners hire an experienced Miami bankruptcy litigation attorney to help them choose the most appropriate type of bankruptcy filing to pursue and to represent them throughout the bankruptcy process. We represent businesses and business owners in Chapter 7 bankruptcy proceedings. We also represent businesses and business owners in litigation arising out of Chapter 7 bankruptcy filings. Our attorneys can help you choose between filing for bankruptcy under Chapter 7 and the other options you may have available, and then we can guide you through the process of winding up your company and moving on to your next business venture. Chapter 11 Bankruptcy Reorganize your debt, finances and business structure in a way that makes more sense and puts you on a path toward profitability. With court supervision, you remain in charge and in possession of your company as you make decisions that respect your creditors’ rights but also enable you to turn your business... - Published: 2021-08-18 - Modified: 2026-09-02 - URL: https://elpllc.law/professionals/brett-d-lieberman/ Brett D. Lieberman Partner Brett D Lieberman, Esq. is a goal-oriented attorney. Mr. Lieberman helps clients find solutions to sophisticated business challenges. He serves clients in Miami, Fort Lauderdale, West Palm Beach, and surrounding areas. Mr. Lieberman practices with relentless intensity; he vigorously advocates for his clients. Attorney Brett D Lieberman focuses his practice in the area of distressed business situations. These include representing companies with financial difficulties, professional fiduciaries, and lenders in a variety of circumstances. Mr. Lieberman regularly represents clients in state court liquidations, bankruptcy proceedings, commercial litigation, and out-of-court workouts. Throughout his career, Mr. Lieberman has prosecuted and defended lawsuits across the spectrum of commercial litigation in both the federal and state arena. Among other engagements, Mr. Lieberman has successfully navigated corporate clients through Chapter 11 reorganizations, has had bad-faith bankruptcy cases dismissed on behalf of creditor clients, and has achieved positive results for clients (plaintiffs and defendants) in avoidance litigation (including fraudulent conveyance and preference actions). Having earned his Master of Accounting and Bachelor of Science in Accounting from the University of Florida in 2006, attorney Brett D Lieberman went on to receive his Juris Doctorate cum laude from the University of Florida Levin College of Law in 2009. During law school, Mr. Lieberman served as Editor-in-Chief for the University of Florida Entertainment Law Review and received two Book Awards. Mr. Lieberman is the Immediate Past-President of the Bankruptcy Bar Association for the Southern District of Florida and previously sat on its Board of Directors. Mr. Lieberman serves as Chair of the Marketing, Promotions and Sponsorship Committee of the Business Law Section of the Florida Bar. He is also a member of the Receivership and Assignment for Benefit of Creditors sub-committees of the Florida Bar’s Business/UCC Section and chairs its CLE committee. He also served for six years on the Federal Court Practice standing committee of the Florida Bar and annually moderates a table during its signature ‘Judges Roundtable’ event. Mr. Lieberman has also been recognized as a ‘Rising Star’ by Super Lawyers, as an ‘Up and Comer’ by Florida Trend Magazine and he earned an AV Preeminent® rating by Martindale-Hubble. Practice Areas Distressed Business Disputes Commercial Litigation Bankruptcy Debtors’ Rights Creditors’ Remedies Representation of Assignees, Trustees & Receivers Education University of Florida Levin College of Law, 2009 Entertainment Law Review – Editor-in-Chief Journal of Technology Law and Policy – Member University of Florida Fisher School of Accounting, Masters in Accounting 2006 University of Florida Bachelor of Science in Accounting, 2006 Bar Admissions Florida Bar 2009 U. S. District Court Southern District of Florida U. S. Bankruptcy Court Southern District of Florida U. S. District Court Middle District of Florida U. S. Bankruptcy Court Middle District of Florida U. S. District Court Northern District of Florida U. S. Bankruptcy Court Northern District of Florida United States Court of Appeals for the Eleventh Circuit Reported Decisions In re Pena, 2020 WL 5512533 (Bankr. S. D. Fla. Sept. 10, 2020) In re Sixty Sixty Condominium Association, Inc. , 574 B. R. 773 (Bankr. S. D. Fla. 2017). Damerau v. FPH Properties, LLC, 2014 WL 2938488 (Bankr. S. D. Fla. June 30, 2014). In re Chung, 2014 WL 11279465 (Bankr. S. D. Fla January 7, 04) Bar Associations Bankruptcy Bar Association for the Southern District of Florida – President Bankruptcy Bar Association for the Southern District of Florida –First Vice President Bankruptcy/UCC Subcommittee of the Business Law Section of the Florida Bar – CLE Chair Marketing, Promotions & Sponsorship Committee for the Business Law Section of the Florida Bar – Vice Chair Florida Bar Marketing Promotion and Sponsorship Taskforce... - Published: 2021-08-18 - Modified: 2026-09-02 - URL: https://elpllc.law/professionals/morgan-b-edelboim/ Morgan B. Edelboim Partner Highly experienced and recognized by the legal community for his skill and integrity, Morgan B. Edelboim focuses his practice primarily on bankruptcy, commercial litigation and real estate. Attorney Morgan B. Edelboim has the highest possible AV Preeminent® Rating by Martindale-Hubbell® and a 10. 0 Avvo rating, an indication of his legal ability and high ethical standards. Only about 10% of all attorneys in the U. S. hold this distinction. He was also been named Legal Elite by Florida Trend Magazine, Super Lawyer by Super Lawyers Magazine, Best Lawyer by Best Lawyers, Rising Star by Super Lawyers Magazine, and as Top Up and Comer by Florida Trend Magazine. Mr. Edelboim was also named 40 under 40 by the Cystic Fibrosis foundation. Mr. Edelboim has also served as a member of the board of directors for the Bankruptcy Bar Association for the Southern District of Florida. Bankruptcy Morgan B. Edelboim is experienced in handling all aspects of bankruptcy proceedings, as well as bankruptcy avoidance, workouts, and creditors’ rights. He has extensive experience representing debtors, creditors and trustee in Chapter 7 and Chapter 11 bankruptcy matters. What makes Mr. Morgan B. Edelboim’s experience unique is that he has substantial experience representing all various parties in bankruptcy matters, including debtors, trustees, liquidating trustees, creditors, secured creditors, official creditor committees, ad hoc committees, and asset purchasers in bankruptcy cases involving a number of industries. These include: Aviation Commodities Construction Entertainment Financial services Healthcare Nutrition Recycling/Waste Management Real estate Retail Mr. Edelboim also has significant bankruptcy litigation experience prosecuting and defending numerous adversary and contested proceedings in bankruptcy court involving preferential transfers, fraudulent transfers, objections to discharge and dischargeability, and objections to exemptions. Mr. Edelboim also has substantial experience representing individuals and businesses in workouts with banking and financial institutions, various lending institutions, and landlords. He regularly represents assignees in assignment for the benefit of creditors’ cases and receivers in federal and state court. Commercial Litigation Mr. Edelboim also represents clients in civil disputes in state court, federal court, and in arbitrations. He has substantial experience representing clients in disputes involving, among other things: Breach of contract disputes, Fraud litigation, Breach of fiduciary duty, Commercial foreclosures, Landlord/Tenant Disputes Post-judgment enforcement, Real Estate, Shareholder/partnership disputes Collections matters This breadth of experience gives Mr. Edelboim a distinct advantage in asserting his clients’ interests in commercial litigation matters. He is committed to the protection of his clients’ rights and will make every effort to secure the best possible result for every individual or business he represents. Real Estate Mr. Edelboim is also part of the real estate team at Edelboim Lieberman and has substantial experience in real estate transactional and litigation matters including: Real Estate Closings Real Estate Title Commercial Foreclosures Receiverships Real Estate Deposit/Escrow Disputes Landlord/Tenant Disputes Evictions/Unlawful Detainers Experience Partner, Bast Amron LLP Attorney, Akerman LLP Awards & Recognitions Florida Trend, Top Up and Comer Cystic Fibrosis Foundation’s 40 Under 40 Outstanding Lawyers of South Florida Florida Rising Stars, Business Bankruptcy Best Lawyer, Best Lawyers Magazine Florida Super Lawyers, Business Bankruptcy Florida Trend, Legal Elite AV Preeminent® Rating, Martindale-Hubbell® 10. 0 Avvo Rating Pro Bono Service Award, Eleventh Judicial Circuit and Dade County Bar Association Publications & Speaking Engagements Co-Author, “When to Assert ’In Pari Delicto’: Affirmative Defense or Motion to Dismiss? ” – ABI Committee Newsletter, Commercial Fraud Vol. 9, No. 6 / December 2012 Professional & Community Activities Past Director, Bankruptcy Bar Association of the Southern District of Florida Past Co-Chair, Miami Social Committee, Bankruptcy Bar Association Southern District of Florida Participant, “Put Something Back” Pro Bono Project of the Dade... - Published: 2021-08-18 - Modified: 2026-09-24 - URL: https://elpllc.law/professionals/ Professionals Home South Florida Real Estate Attorneys Professionals Brett D. Lieberman Morgan B. Edelboim Alexander Lewitt Craig Blinderman Denissis Dias Franco Della Torre, Esq. Tisha Bougouneau Virginia Gonzalez Business Bankruptcy Chapter 7 Chapter 11 Adversary Proceedings Creditor Rights and Representation Assignment for the Benefit of Creditors Commercial Litigation Shareholder Disputes Debt Collection-Enforcement of Judgment UCC Sale of Goods & Secured Transactions Corporate Disputes Breach of Contract Business Divorce Partnership Disputes Negligence Breach of Fiduciary Duty Fraud Litigation Real Estate Commercial Real Estate Litigation Escrow Disputes Miami Real Estate Title Lawyer Partition Actions in Florida Real Estate Contracts Real Estate Closings and Title Issues Foreclosure Testimonials Blog Contact Us Disclaimer Thank You Site Map - Published: 2021-08-10 - Modified: 2026-09-24 - URL: https://elpllc.law/disclaimer/ Disclaimer The information and materials on this Web site are provided for general informational purposes only, and are not intended to be legal advice. We attempt to provide quality information, but the law changes frequently, and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance. An attorney and client relationship should not be implied. Nothing on this Web site is intended to substitute for the advice of an attorney; therefore, if you require legal advice, please consult with a competent attorney licensed to practice in your jurisdiction. - Published: 2021-08-10 - Modified: 2026-10-23 - URL: https://elpllc.law/ Experienced Miami Trial & Litigation Attorneys Serving Miami and All of Southern Florida Edelboim Lieberman is all about finding solutions that meet your needs. We offer practical advice and skilled representation to solve your legal problem or resolve your legal dispute efficiently and effectively. Our diligent attorneys show up prepared to every meeting, arbitration or litigation, ready to represent you and help you reach your goals. Our South Florida law firm is experienced in a range of matters with a sustained record of success. If your issue has come up before, chances are we’ve encountered it, dealt with it and solved it. If it’s a new or novel issue, you’ll find our lawyers to be creative problem-solvers who use their breadth of experience in the law to craft a strategic solution that meets your needs. As an individual, entrepreneur, investor or business owner, you work hard to achieve your goals. It is a never-ending struggle to protect your interests, financial and otherwise, and at times you must seek legal counsel to make sure the future you have envisioned remains uncompromised. As bankruptcy lawyers, real estate attorneys and commercial litigation lawyers, we recognize and meet our clients’ needs for comprehensive legal representation in litigation, bankruptcy proceedings, business law, and real estate transactions and litigation. Edelboim Lieberman is your go-to law firm for help with business bankruptcy, commercial litigation or real estate law in South Florida... . read more Business Bankruptcy Our comprehensive South Florida bankruptcy litigation practice includes helping business owners find solutions through Chapter 7 business liquidations and Chapter 11 business reorganizations. Chapter 7 can help you cancel your debts and wind up operations with no lingering liability and no forcible eviction from the premises. Chapter 11, in contrast, can help you stay in business and stay in charge while you work up a plan to reorganize and restructure your debt and operations. If you are a sole proprietor, Chapter 13 might be an even more attractive option to pay your debts comfortably over a three or five-year period. In any type of bankruptcy, you’ll benefit from the automatic stay provision that stops collection efforts while you figure out a solution. We represent secured and unsecured creditors in bankruptcy as well, protecting their rights and making sure their voice is heard in the development of any plan. As experienced business litigators, our team provides aggressive and effective representation in any adversary proceedings that might arise during a bankruptcy, representing debtors and creditors in litigation over the dischargeability of a debt, the propriety of a preferential payment, and other disputes. Finally, we can explore other alternatives to bankruptcy that might serve your needs as well or better, such as an assignment for the benefit of creditors. Commercial Litigation At Edelboim Lieberman, you’ll find seasoned and experienced trial and litigation attorneys honed and ready to take on any legal dispute. Our South Florida commercial litigation practice encompasses breach of contract disputes, allegations of fraud or breach of fiduciary duty, negligence, foreclosure, landlord/tenant matters, partnership and corporate disputes, business divorce, UCC sales of goods and secured transactions, and debt collection matters including enforcement of judgments. Our commercial litigation lawyers provide proactive legal counsel to prevent litigation in the first place; we have the flexibility to promote advantageous negotiations and the skills and experience necessary to take cases to trial if need be. While prepared to fight for our clients in court, we will strategically negotiate to resolve disputes when that approach is better aligned with your commercial or business needs. We make sure from the start that our strategies align with your goals... ## Posts - Published: 2026-09-30 - Modified: 2026-10-13 - URL: https://elpllc.law/blog/what-is-the-difference-between-chapter-7-and-chapter-11-bankruptcy-for-florida-businesses/ For distressed businesses, Chapter 7 and Chapter 11 are very different options that achieve very different goals. If you think bankruptcy might be your business’s best option, consult an experienced Miami business bankruptcy attorney who can help you make an informed, strategic decision about how to move forward. Filing for bankruptcy can be a viable option for financially distressed businesses in many scenarios. But should distressed businesses file under Chapter 7 or Chapter 11? For distressed businesses, filing under Chapter 7 and filing under Chapter 11 are very different options. The procedures and outcomes differ significantly. As a result, business owners need to make informed, strategic decisions about which option to pursue, and they should consult an experienced Miami business bankruptcy attorney who can provide the advice and insights they need. What Are the Key Differences Between Chapter 7 and Chapter 11? While Chapter 7 and Chapter 11 differ in several ways, the most important difference is the outcome. The Chapter 7 bankruptcy process focuses on liquidation, while the Chapter 11 bankruptcy process focuses on reorganization: Liquidation Under Chapter 7 – In Chapter 7, the focus is on winding down the business’s affairs. The business’s assets are liquidated to pay its creditors (to the extent required by law), and then the business is closed. However, if the liquidation process does not fully satisfy creditors’ claims, creditors may be able to pursue claims against the business’s owners under personal guarantees or on other grounds. Liquidation Under Chapter 11 – In a Chapter 11 bankruptcy, the focus is on reorganizing the business’s debts so that it remains viable as a going concern. The business establishes a manageable payment plan that allows it to pay down its debts over time; ideally, by the end of the process, the business is back on solid financial footing. Businesses can often eliminate debts through reorganization, and they can also sell unwanted assets to reduce their debt load and streamline operations going forward. As a result, if your business is in financial distress, deciding whether to file for bankruptcy under Chapter 7 or Chapter 11 is a threshold issue. Once you decide whether to liquidate or reorganize, you can begin making strategic decisions focused on maximizing the benefits of the bankruptcy process. When Should Distressed Businesses File Under Chapter 7? When Should They File Under Chapter 11? When choosing between Chapter 7 and Chapter 11, there is no single “right” answer. Instead, deciding how to proceed requires careful consideration of several factors. Ultimately, however, the key question is whether reorganizing the business’s debts under Chapter 11 is likely to provide sufficient financial stability (unless there is simply no interest in keeping the business open). If reorganizing the business’s debts is likely to improve its financial situation, then filing under Chapter 11 will likely make sense—though it's worth considering the available alternatives. Conversely, if reorganizing the business’s debts will not provide the financial relief it needs, then it may be time to consider liquidation. FAQs: Pursuing a Business Bankruptcy in South Florida Is filing for bankruptcy under Chapter 7 cheaper than filing under Chapter 11? Yes and no. Typically, filing for bankruptcy under Chapter 7 is cheaper than reorganizing a business’s debts under Chapter 11. However, Chapter 7 bankruptcies can often prove to be more costly overall. While Chapter 7 involves liquidating the business’s assets and using the proceeds to pay creditors to the extent possible, Chapter 11 can put struggling businesses back on track for long-term profitability. How can (and should) business owners choose between Chapter 7 and Chapter 11? Business owners should work with an experienced... - Published: 2026-09-23 - Modified: 2026-10-13 - URL: https://elpllc.law/blog/business-debt-restructuring-regaining-financial-stability-without-filing-for-bankruptcy/ While filing for bankruptcy is an option for financially struggling businesses, it isn’t necessarily the only—or best—option. In many cases, it's more advantageous for struggling businesses to restructure their debts outside the formal bankruptcy process. Learn about some key considerations from an experienced Miami bankruptcy lawyer at Edelboim Lieberman. Many businesses struggle for many reasons. From economic uncertainty to increased competition, numerous issues can make it difficult for businesses to make payroll and pay their debts as they come due. When businesses struggle financially, taking a proactive approach to resolving those struggles can be critical to avoiding unnecessary consequences. This might involve reorganizing debts under Chapter 11, or restructuring them outside the formal bankruptcy process. What Does Business Debt Restructuring Entail? Restructuring a business’ debts outside of the formal bankruptcy process can take a variety of different forms. Because debt restructuring does not involve going to court, businesses (and their creditors) have significant flexibility to craft solutions tailored to their specific risks and needs. With this in mind, several potential solutions are available. When debtors and creditors share a mutual interest in avoiding default, they can often reach a settlement. Some examples of potential solutions include: Forbearance Agreements – Forbearance agreements provide an agreed-upon grace period during which struggling businesses do not have to make payments. Composition Agreements – Composition agreements consolidate a business’ debts owed to multiple creditors into a single, manageable payment obligation. Refinancing with a Lower Interest Rate – In some cases, creditors may agree to reduced interest rates to continue receiving timely payments. Refinancing Into a Longer Amortization – Another refinancing option involves extending the business’s amortization period, which reduces its monthly payments (but can increase the total cost of the loan). Debt-for-Equity Swap – As its name suggests, a debt-for-equity swap involves a creditor taking an equity stake in a financially distressed business in exchange for reducing the business’s outstanding liability. As you can see, the options in this scenario vary widely—and, as we said above, these are just examples. If your business is struggling, an experienced Miami bankruptcy lawyer can help you consider all your options and pursue the solution that makes the most sense under the circumstances. When is Informal Debt Restructuring Preferable to Reorganizing Under Chapter 11? Generally, informally restructuring a business’ debts is preferable to reorganizing under Chapter 11 when it is the more cost-effective option over the long term. Even if restructuring a business’ debts is cost-efficient in the short term, it may not be the best long-term approach if it requires an extended amortization schedule or giving up ownership of the company. Working with a business’ creditors rather than filing for bankruptcy can also help preserve critical relationships and funding sources, which is worth considering. Conversely, if a creditor is pursuing collection and a business needs immediate protection, then filing under Chapter 11 and securing protection under the automatic stay could be the best—and perhaps only—option available. FAQs: Restructuring a South Florida Business’ Debts Outside of the Bankruptcy Process When is it time to consider restructuring a business’ debts? Consider restructuring as soon as a business’ debts start to become (or even threaten to become) unmanageable. A proactive approach is almost always best, and avoiding default helps businesses maintain leverage in restructuring negotiations. What if a creditor is unwilling to consider restructuring? If a creditor is unwilling to consider restructuring, it's worth making sure all viable options have been put on the table. As discussed above, several options are available, and different options may be more desirable in different circumstances. Ultimately, however, if a creditor is unwilling to consider... - Published: 2026-09-16 - Modified: 2026-10-13 - URL: https://elpllc.law/blog/what-are-the-pros-and-cons-of-a-small-business-bankruptcy-under-subchapter-v/ For qualifying small businesses, filing for bankruptcy under Subchapter V can offer several advantages over a traditional Chapter 11 reorganization. But potential drawbacks exist, and business owners should weigh all options before deciding how to proceed. An experienced Miami bankruptcy lawyer can help with making an informed decision. Subchapter V of the U. S. Bankruptcy Code offers a streamlined alternative to a traditional Chapter 11 reorganization. Filing under Subchapter V is an option for “small businesses”—which, as of 2026, are defined as businesses with no more than $3,424,000 in qualifying debts. For small businesses that qualify to file under Subchapter V, doing so will often be preferable to filing under Chapter 11. But there are some potential drawbacks to consider, and business owners should not choose Subchapter V by default. Instead, they should work with an experienced Miami bankruptcy lawyer to assess their options and make informed decisions based on their specific circumstances. What are the Benefits of Pursuing a Small Business Bankruptcy Under Subchapter V? For qualifying small businesses that are in financial distress, pursuing reorganization under Subchapter V can offer several benefits compared to filing under Chapter 11. Subchapter V is intended to make reorganization more accessible to small businesses—and, as a result, it can be a desirable option in a wide range of scenarios. Some of the benefits of pursuing a small business bankruptcy under Subchapter V include: A Faster, Less-Complex Process – Subchapter V substantially streamlines the process of formally reorganizing a business’s debts. As a result, filing under Subchapter V is both faster and less expensive than filing under Chapter 11. No Creditors’ Committee – In a traditional Chapter 11 case, a creditors’ committee represents the interests of the business’s creditors, and the business’s reorganization plan is subject to the committee’s approval. There is no creditors’ committee in a Subchapter V case. Increased Control – When filing under Subchapter V, businesses (and their owners) retain greater control over their operations compared to filing under Chapter 11. In a Subchapter V bankruptcy, the trustee’s role is limited—making it easier for the business’s owners to make business-related decisions during the process. While these are not the only benefits of pursuing a small business bankruptcy under Subchapter V, they are among the most significant. It is also worth noting that the primary benefits afforded by filing under Chapter 11 (i. e. , the automatic stay and the ability to proactively propose a reorganization plan) are available in Subchapter V cases as well. As a result, when businesses are eligible to file under Subchapter V, it usually makes sense to do so. What Are the Potential Drawbacks of Pursuing a Small Business Bankruptcy Under Subchapter V? Before committing to Subchapter V, however, business owners should also consider some potential drawbacks. Here are some examples of countervailing considerations: Stricter Timelines – While the Subchapter V process is more streamlined, it also has stricter timelines. That said, an experienced Miami bankruptcy lawyer can help you take a proactive approach that eliminates timing-related concerns. Potential Creditor Objections – Even without a creditors’ committee in a Subchapter V case, creditors can still object to the business’s proposed reorganization plan. Without the protections afforded in a traditional Chapter 11 case, creditors may take a more aggressive approach to protecting their interests during the process. An “Uneasy Fit” with Prepackaged Filings – Prepackaged filings (or “prepacks”) in traditional Chapter 11 cases allow businesses to get a leg up on their creditors early in the process. But, as the federal government explains, Subchapter V is an “uneasy fit” with prepacks. Even so, businesses can take pre-filing... - Published: 2026-07-31 - Modified: 2026-08-01 - URL: https://elpllc.law/blog/attorneys-brett-lieberman-and-alexander-lewitt-selected-to-lead-financial-literacy-task-force/ Edelboim Lieberman attorneys Brett Lieberman and Alexander Lewitt have been selected to lead the Financial Literacy Task Force of the Florida Bar Association’s Business Law Section. The Financial Literacy Task Force advocates for making financial literacy and education mandatory in Florida high schools. We are pleased to announce that Partner Brett Lieberman and Associate Attorney Alexander Lewitt have been selected to lead the Financial Literacy Task Force of the Florida Bar Association’s Business Law Section. Mr. Lieberman will serve as the Financial Literacy Task Force’s Chair, and Mr. Lewitt will serve as Vice Chair. About the Financial Literacy Task Force As explained by the Business Law Section, the Financial Literacy Task Force’s mission is, “to develop a strategy to make financial literacy and education a high school requirement in Florida. ” As the Business Law Section goes on to explain: “The Task Force’s vision is to ensure the financial well-being for all individuals and families in Florida through financial education in high school and college. In furtherance of this vision, the Task Force develops strategic direction for policymaking, legislation, awareness, and coordination with stakeholders to ensure that all young individuals have the financial literacy to make informed financial decisions during their adult lives through early financial education. ” The Task Force was established after two studies conducted in 2018 found that a significant financial literacy gap exists in the United States. One of the studies found that only a third of adults could answer at least four out of five basic financial literacy questions, while the other found that just 22 percent of 15-year-old students demonstrated a basic level of financial literacy (with just 12 percent demonstrating the highest level of financial skills assessed). By focusing on making financial literacy and education mandatory in Florida high schools, the Task Force seeks to close this gap statewide. Get to Know Partner Brett Lieberman Partner Brett Lieberman has been practicing law in Florida since 2009. He focuses his practice on distressed business situations, representing both debtors and creditors. His experience includes successfully representing clients in Chapter 11 reorganization proceedings, informal workouts, bankruptcy and commercial litigation, and other matters falling at the intersection of law and finance. Get to know Partner Brett Lieberman. Get to Know Associate Attorney Alexander Lewitt Associate Attorney Alexander Lewitt is licensed to practice in both Florida and New York. He focuses on representing clients in restructurings, recapitalizations, and other insolvency-related matters. He also represents hedge funds and investors in disputes involving allegations of fiduciary duty breaches, contract breaches and misappropriation of investor funds. Get to know Associate Attorney Alexander Lewitt. Contact Edelboim Lieberman If you would like to know more about the Business Law Section’s Financial Literacy Task Force, Mr. Lieberman or Mr. Lewitt’s experience, or any other aspect of our practice, we encourage you to get in touch. To schedule an appointment, please call 305-768-9909 or tell us how we can reach you online today. - Published: 2026-07-29 - Modified: 2026-08-01 - URL: https://elpllc.law/blog/partners-morgan-edelboim-and-brett-lieberman-named-2026-super-lawyers/ Partners Morgan Edelboim and Brett Lieberman have once again been selected as Super Lawyers in 2026. Mr. Edelboim has been selected as a Super Lawyer each year since 2020, while Mr. Lieberman has been selected annually since 2023. Both were previously recognized as Super Lawyers Rising Stars. We are pleased to announce that Partners Morgan Edelboim and Brett Lieberman have once again been selected as Super Lawyers in 2026. This is the seventh consecutive year that Mr. Edelboim has been selected as a Super Lawyer, while this is the fourth consecutive year for Mr. Lieberman. Both Mr. Edelboim and Mr. Lieberman were previously recognized as Super Lawyers Rising Stars, a designation awarded to lawyers recognized for their capabilities early in their careers. Super Lawyers Recognizes the Top Five Percent of Attorneys Annually Super Lawyers is a rating service focused on identifying attorneys, “who have attained a high degree of peer recognition and professional achievement. ” Super Lawyers uses a patented selection process that is “peer-influenced and research-driven,” and it selects the top five percent of attorneys for recognition each year. Previous recognition does not guarantee future recognition, meaning that Mr. Edelboim and Mr. Lieberman have been independently selected for inclusion on an annual basis. About Partner Morgan Edelboim Morgan Edelboim focuses his practice primarily in the areas of bankruptcy, commercial litigation, and real estate law. Along with being recognized as a Super Lawyer, Mr. Edelboim holds an AV Preeminent® Rating from Martindale-Hubbell®. This is the highest possible rating, and only about 10 percent of attorneys in the U. S. hold this distinction. Mr. Edelboim has deep experience representing corporate clients in a wide range of industries—including aviation, construction, financial services, healthcare and retail, among others. He has extensive experience advocating for his clients’ interests both in and out of court, and is licensed to practice in state and federal courts throughout Florida. About Partner Brett Lieberman Brett Lieberman focuses his practice on distressed business situations. He represents clients in federal bankruptcy proceedings and commercial litigation, as well as informal debt restructurings and other out-of-court workouts. He also holds an AV Preeminent® Rating from Martindale-Hubbell®, and he has been recognized by Chambers and Partners in the areas of Bankruptcy/Restructuring and Bankruptcy Litigation. Mr. Lieberman’s clients include businesses of all sizes facing financial distress for a variety of reasons. He also represents creditors in distressed business situations. He has successfully represented numerous clients on both sides of Chapter 11 reorganizations, in addition to helping clients achieve favorable out-of-court resolutions in a wide range of circumstances. Contact Edelboim Lieberman Today If you would like to speak with Mr. Edelboim or Mr. Lieberman about your business’s needs, we invite you to get in touch. With offices in Miami and Fort Lauderdale, Edelboim Lieberman represents clients throughout Florida. To request a free consultation, please call 305-768-9909 or tell us how we can help online today. - Published: 2026-07-24 - Modified: 2026-08-11 - URL: https://elpllc.law/blog/creditors-rights-mistakes-to-avoid-when-preparing-a-proof-of-claim/ When a customer files for bankruptcy, filing a proof of claim can be a critical step for protecting creditors’ rights going forward. Creditors must ensure that they file their proof of claim forms properly, as failing to do so can result in the loss of available protections. With this in mind, it is best to hire an experienced Miami creditors’ rights attorney who can provide advice and representation throughout the process. While filing for bankruptcy affords significant protections to struggling companies, creditors are entitled to certain protections during the bankruptcy process as well. In many cases, securing these protections starts with filing a proof of claim. In this scenario, creditors must ensure they do what is necessary to preserve their options, as both substantive and technical shortcomings can lead to adverse consequences. When Do Creditors Need to File a Proof of Claim After Receiving Notice of a Bankruptcy? As a general rule, creditors must file a proof of claim after receiving notice of a customer’s bankruptcy filing. Once a debtor files for bankruptcy, the court will establish a filing deadline, and creditors must file by the deadline in order to preserve their right to participate in the bankruptcy process. The only circumstance in which a creditor would not need to file a proof of claim is when: (i) the creditor’s claim is accurately reflected on the schedules included with the customer’s Chapter 7 or Chapter 11 bankruptcy petition; and (ii) the claim is not listed as disputed, contingent, or unliquidated. But even in this scenario, filing a proof of claim is still an option—and it may be prudent to help avoid unnecessary issues going forward. How Do Creditors File a Proof of Claim? Creditors must generally file their proof of claim using the form (Official Form 410) available from the U. S. Bankruptcy Court. When completing the proof of claim form, creditors must include all pertinent information—including the value of their claim, unless their claim is contingent or unliquidated. If a creditor’s claim is contingent or unliquidated, the creditor must also include an explanation of the nature of the claim. Along with the proof of claim form itself, creditors must also file appropriate supporting documentation. In most cases, this will include the customer’s contract, unpaid invoices, and/or other documentation of the customer’s payment obligation and non-payment. Including adequate supporting documentation is essential, and creditors will want to work with their counsel to ensure they submit sufficient documentation to mitigate their risk of issues later in the process. What Mistakes Do Creditors Need to Avoid When Filing a Proof of Claim? When required, filing a proof of claim is an essential step for protecting creditors’ rights during the bankruptcy process. Creditors that need to file a proof of claim also need to avoid mistakes that could lead to the loss of their rights (as well as other potential complications). Some examples of key mistakes to avoid include: Failing to File a Proof of Claim – If a creditor is required to file a proof of claim and fails to do so, this failure will result in loss of the creditor’s ability to protect its claim during the customer’s bankruptcy. Failing to File on Time – Failing to file a proof of claim by the court’s established deadline can have the same consequences as failing to file at all. Omitting Required Information – Omitting required information from a creditor’s proof of claim can also potentially lead to rejection. At the very least, it can lead to complications (and costs) that could have been avoided. Omitting Substantiating Documentation – Likewise, omitting necessary substantiating... - Published: 2026-07-17 - Modified: 2026-08-11 - URL: https://elpllc.law/blog/filing-for-chapter-11-as-a-startup-key-considerations-for-growing-companies/ Startups in financial distress may have several options for maintaining their viability. One potential option is to reorganize their debts through a Chapter 11 bankruptcy. If you run a growing business in South Florida that is struggling financially, an experienced Miami business bankruptcy lawyer can help you make informed decisions about how best to proceed. Many startup businesses struggle financially. Even with outside funding, startups will often face growing pains or other financial challenges that impair their ability to pay their debts as they come due. In this scenario, filing for bankruptcy under Chapter 11 can provide a financial lifeline while also providing the financial stability needed for the future. If you run a startup in South Florida that is struggling financially, you will want to consult with an experienced Miami business bankruptcy lawyer about your options. While filing under Chapter 11 is one potential option, you may have other options as well. That said, if pursuing a business bankruptcy under Chapter 11 makes sense under the circumstances, you will most likely want to start the process as soon as possible. Is Filing Under Chapter 11 an Option for Startups? If So, When? Filing under Chapter 11 is an option for startups. Startups in South Florida can (and do) file under Chapter 11, and leveraging the benefits Chapter 11 affords can be an attractive option in a wide range of scenarios. That said, to file under Chapter 11, startups need a viable path forward. Startups must be able to fund the reorganization process (or seek debtor-in-possession (DIP) financing), and they must be able to demonstrate that they have a plan for meeting their reorganized debt obligations. Filing under Subchapter V offers a streamlined alternative to a “traditional” Chapter 11 filing, and startups will qualify to file under Subchapter V in many cases. What are the Benefits of Filing Under Chapter 11 for Struggling Startups? In the right circumstances, pursuing a business bankruptcy under Chapter 11 can afford several benefits to struggling startups. Generally speaking, the primary benefits of the process include: Automatic Stay – Once a business files for bankruptcy under Chapter 11, the automatic stay prevents its creditors from pursuing collection during the process. If your startup is facing a foreclosure or any other collection action, filing promptly (if warranted) could prevent any pending foreclosure or collection proceedings from moving forward. Selectivity – During the Chapter 11 process, businesses can choose which assets they want to keep, and they also can decide whether to accept or reject executory contracts. While there are limits, leveraging these options can provide financial flexibility beyond what is afforded by reorganization. Reorganization – The primary benefit of filing under Chapter 11 (including filing under Subchapter V) is that it provides an opportunity to restructure the business’s outstanding financial obligations. By “reorganizing” its debts, the business can regain its ability to both meet its financial obligations and continue investing in the future. An experienced Miami business bankruptcy lawyer can walk you through each of these benefits in detail—as well as any other potential benefits based on your startup’s unique circumstances. If your startup needs the relief afforded by the Chapter 11 automatic stay, an experienced lawyer can begin the process promptly. What Are the Alternatives to Filing Under Chapter 11 for Struggling Startups? While reorganizing under Chapter 11 can make sense in a wide range of circumstances, it won’t necessarily be the best option for all startups in all cases. There are various potential cost-effective alternatives, including (but not limited to): Informal debt restructuring Internal corporate restructuring Renegotiating with individual vendors, lenders and other creditors... - Published: 2026-07-10 - Modified: 2026-08-11 - URL: https://elpllc.law/blog/preparing-for-success-in-a-chapter-11-bankruptcy/ Preparing for success in a Chapter 11 bankruptcy starts with making informed decisions. By developing and executing a plan with a specific outcome in mind, businesses that need to reorganize their debts can make the process as efficient as possible while also setting themselves up for success going forward. An experienced Miami Chapter 11 bankruptcy lawyer can assist with developing a plan based on a business’s specific risks and needs. Filing for bankruptcy under Chapter 11 can make sense in a wide range of circumstances. While the primary purpose of filing under Chapter 11 is to regain a business’s financial stability by reorganizing its outstanding debts, filing can also provide several other benefits. In all cases, leveraging the benefits of filing under Chapter 11 starts with preparing for success. By taking a proactive approach to their preparations, struggling businesses can both maximize the benefits of filing and help ensure that the process is as efficient and non-confrontational as possible. What Are the Requirements to File for Bankruptcy Under Chapter 11? Generally, filing for bankruptcy under Chapter 11 is an option for struggling businesses that have a viable path forward. If reorganizing a business’s debts will not fix its financial issues, the business may need to consider liquidating or pursuing another alternative instead. From a more technical perspective, businesses seeking to reorganize their debts under Chapter 11 must meet several strict filing requirements. They must also ensure that they are prepared to meet the requirements for plan confirmation under Sections 1123(a) and 1129(a) of the U. S. Bankruptcy Code. If a business is prepared to do what is required—and if pursuing a formal reorganization is the best option under the circumstances—the business’s leaders will also need to decide what type of Chapter 11 filing they want to pursue. While pursuing a Subchapter V “small business” bankruptcy is an increasingly popular option, there can be benefits to pursuing a “pre-packaged” or “pre-arranged” Chapter 11 bankruptcy in some cases as well. What Else Can (and Should) Businesses Do to Prepare for a Successful Reorganization? When preparing for a Chapter 11 bankruptcy, another step that business leaders can take to help maximize the benefits of the process is to ensure that they thoroughly consider all of the options they have available. Along with considering the various types of Chapter 11 filings as we just discussed, this includes considering options such as: Using “Section 363” sales to dispose of unwanted assets Rejecting or assigning executory contracts to free up cash flow Securing debtor-in-possession (DIP) financing to facilitate the reorganization process These are just examples. An experienced Miami Chapter 11 bankruptcy lawyer will be able to identify all of the options that are worth considering under the circumstances at hand. In many cases, pursuing these kinds of options will require legwork prior to filing, so it is important not to overlook or put off this part of the process. What Potential Issues Should Businesses Be Prepared to Address After Filing for Chapter 11? Along with considering their options, business leaders who are contemplating a Chapter 11 bankruptcy must also give due consideration to any potential issues that may arise. Some examples of potential issues include: Creditors attempting to seek relief from the automatic stay Creditors asserting defenses to discharge Creditors asserting claims of preferential transfers, bankruptcy fraud, and related allegations Understanding the types of issues that can delay (or derail) the bankruptcy process is critical for making informed decisions early in the process as well. By ensuring that they know what not to do, business leaders can avoid making costly mistakes; and, by anticipating potential roadblocks,... - Published: 2026-06-30 - Modified: 2026-08-11 - URL: https://elpllc.law/blog/resolving-partnership-disputes-when-partners-have-equal-voting-rights/ When partners have equal voting rights, a contentious dispute can lead to an impasse with no clear path forward. In this scenario, the partners will need to review the relevant terms of their partnership agreement to determine their next steps. While partners with equal voting rights will often need to pursue alternative dispute resolution (ADR), there are also other possibilities—including pursuing a buyout or dissolution when necessary. Partnership disputes can present a variety of legal, financial, and practical challenges. While this is true in all circumstances, it can be especially true when partners have equal voting rights. If neither partner (or group of partners) has the ability to make a binding decision on the partnership’s behalf, the partners may have no choice other than to pursue a formal legal resolution. In this scenario, it will generally be necessary to engage an experienced Miami partnership dispute attorney who can review the partnership agreement and provide advice regarding the options that are available. 5 Potential Options for Resolving Partnership Deadlocks The options that are available in any particular case will depend on the specific circumstances involved. This includes, but is by no means limited to, the nature of the issue underlying the partners’ dispute and the terms of their partnership agreement. With this in mind, if none of the partners can force a path forward, the options for resolving a deadlock may include: 1. Informal Negotiations Even in highly contentious scenarios, informal negotiations are often the first step. Each partner involved in the dispute should engage legal counsel, as each partner will need an independent attorney who can provide complete, unfiltered, and unbiased advice. Oftentimes, even taking a slightly more structured approach to negotiating a resolution can prove to be enough. Whether the partners share a mutual interest in moving past the conflict or they are ready to part ways, they will generally share a common interest in avoiding unnecessary costs and delays. That said, negotiating won’t prove fruitful in all cases—and when it doesn’t, the partners will need to move to the next stage in the process. 2. Alternative Dispute Resolution (ADR) In many cases, the next stage in the process will be to pursue alternative dispute resolution (ADR). Partnership agreements typically include mandatory ADR clauses that require mediation or arbitration (or both) in the event of a deadlock. Mediation is a form of guided negotiation that involves working with a neutral third-party mediator, while arbitration is more akin to a slimmed-down version of litigation that ends with a binding decision from an arbitrator or arbitration panel. When pursuing mediation, the parties are required to participate in the process in good faith. However, neither party is required to agree to a mediated settlement. If partners pursue mediation and it becomes clear that the process is not going to be successful, they can terminate the process and initiate arbitration or litigation depending on what their partnership agreement requires. 3. A Buyout and Severance of the Partnership If deadlocked partners cannot find a mutually agreeable path forward, they may need to focus on negotiating a buyout instead. Here too, examining the relevant terms of the partnership agreement will be the first step. In the absence of clear contractual guidance, the partners will generally be free to negotiate as they see fit—though both sides will need to come to the table in good faith if they are going to achieve a resolution that avoids the need for arbitration or litigation. 4. Sale or Dissolution of the Partnership If neither partner is able or willing to buy out the other, then the partners may be... - Published: 2026-06-23 - Modified: 2026-08-11 - URL: https://elpllc.law/blog/renegotiating-and-restructuring-during-the-chapter-11-process/ Businesses that have filed for bankruptcy under Chapter 11 can leverage the process to renegotiate and restructure their debts informally in many cases. This can often substantially shorten the timeline and reduce costs. However, businesses must be careful to avoid entering into agreements that unduly impair other creditors’ rights. This is one of many aspects of the process where an experienced Miami business bankruptcy attorney can help. While going through the Chapter 11 bankruptcy process involves formally reorganizing a business’s debts so that it can avoid defaults, foreclosures, and other means of collection, businesses can—and frequently do—negotiate outside of the formal bankruptcy process as well. This can prove to be a highly effective approach in many cases, as creditors will often prefer to negotiate informally rather than investing the time and costs involved in protecting their rights in court. With that said, when renegotiating and restructuring outside of the formal business bankruptcy process, businesses need to be careful to avoid unduly disadvantaging their other creditors. This can lead to disputes (and potentially litigation) that frustrate the purpose of negotiating informally. An experienced Miami business bankruptcy attorney can assist with making informed and strategic decisions and can engage in both formal and informal negotiations with the business’s creditors as warranted. Financial Obligations that Can Be Renegotiated and Restructured Businesses can (and do) renegotiate and restructure all types of financial obligations outside of the formal Chapter 11 process. Businesses can potentially revisit other agreements as well, and counterparties will often be willing to renegotiate to protect important business relationships and their own long-term financial interests. Some examples of contracts that it may be beneficial to renegotiate or restructure include: Commercial real estate leases Customer and client agreements Equipment and vehicle leases Financing agreements Vendor and supplier agreements Again, these are just examples. Ultimately, what makes sense in any particular case will depend on the specific circumstances at hand. When preparing to go through a Chapter 11 bankruptcy, business owners and executives should work with their company’s legal counsel to make informed and strategic decisions about how to address each pertinent agreement with a focus on securing a comprehensive resolution that maximizes the company’s financial flexibility going forward. Leveraging the Ability to Reject Executory Contracts Section 365 of Chapter 11 allows businesses to reject executory contracts during the reorganization process. An executory contract is any contract under which both parties have continuing performance obligations. If a business rejects an executory contract during the bankruptcy process, the business remains liable for any amounts already due under the contract, and the creditor on the other side of the contract can pursue a claim for rejection damages. Even so, a business’s ability to reject executory contracts can provide significant leverage in contract renegotiations. Pursuing a claim for rejection damages won’t always (or often) be palatable, and for creditors facing rejection, the least-costly option will be to renegotiate in many cases. Key Considerations When Negotiating Outside of the Formal Chapter 11 Process As mentioned above, when renegotiating outside of the formal Chapter 11 process, businesses need to be careful to ensure that they do not unduly impair other creditors’ rights. With this in mind, some key considerations when pursuing informal renegotiations or restructuring include: Different creditors’ “priority” rights The potential for preferential transfer allegations The potential for other defenses to discharge The costs of “assuming” (rather than rejecting) executory contracts The benefits of leveraging the formal Chapter 11 process Here too, these are just examples. By giving due consideration to all potential legal and financial concerns—and by taking a comprehensive and cohesive approach to the process—business owners... - Published: 2026-06-16 - Modified: 2026-08-01 - URL: https://elpllc.law/blog/the-lifecycle-of-a-chapter-11-bankruptcy-case/ Reorganizing a business’s debts under Chapter 11 is a multi-stage process that requires an informed and strategic approach. The process starts with pre-petition planning and decision-making, and it ends with approval of the business’s reorganization plan. But there are several key steps along the way, and navigating the process successfully requires the advice and insights of an experienced Miami Chapter 11 bankruptcy lawyer. Filing for bankruptcy under Chapter 11 provides the opportunity to reorganize a business’s debts so that it can avoid payment defaults and remain viable as a going concern. Many businesses are eligible to file under subchapter V, which offers streamlined procedures and reduced costs. But in all cases, reorganizing a business’s debts under Chapter 11 is a multi-stage process, and navigating it successfully requires informed and strategic decision-making every step of the way. With this in mind, here is a brief introduction to what business owners and executives can expect once they hire a Miami Chapter 11 bankruptcy lawyer to guide them forward: Pre-Petition Planning and Strategic Decision-Making The Chapter 11 bankruptcy process begins well before a business files its bankruptcy petition in court. There are several strategic decisions that need to be made before filing, including (but not limited to): Whether to File Under Chapter 11 or Pursue an Alternative to Formal Reorganization – One of the first decisions is whether to file under Chapter 11 or pursue an alternative to formal reorganization. While filing under Chapter 11 will often prove to be the most advantageous approach, there are various potential alternatives available. Whether to Pursue a Traditional Chapter 11 Case or a Subchapter V “Small Business” Bankruptcy – Subchapter V establishes a streamlined process for “small businesses. ” Qualifying businesses will benefit from using this streamlined process in most cases. Whether to Pursue a Prearranged or Prepackaged Bankruptcy – Prearranged and prepackaged bankruptcies can help streamline the process as well. Here too, pursuing these options will make sense in some, but not all, cases. These are just a few of numerous examples. By making informed decisions about these (and other) issues at the pre-filing stage, business owners and executives can both avoid unnecessary costs and maximize the benefits of the Chapter 11 reorganization process. Filing for Bankruptcy Under Chapter 11 Once the decision is made to file under Chapter 11, it will generally make sense to start the process promptly. One of the primary reasons is to secure the protections afforded by the automatic stay that takes effect upon filing. When filing Chapter 11 bankruptcy petitions, businesses must include all required financial disclosures, and it will often make sense to file various “first day” motions as well. Navigating the Chapter 11 Bankruptcy Litigation Process From this point forward, the steps involved in litigating a Chapter 11 bankruptcy case depend on whether the business filed a traditional Chapter 11 case or filed under Subchapter V. Generally speaking, businesses will need to continue to work closely with their bankruptcy counsel to keep their cases moving forward. If any issues arise during the process (i. e. , if any creditors assert defenses to discharge), businesses will need to work with their counsel to resolve these issues as well. Addressing Special Considerations Different financial and commercial circumstances can pose both different risks and different opportunities during a Chapter 11 bankruptcy. To maximize the benefits of the process, business owners should work with their bankruptcy counsel to ensure they address any special considerations relevant under the circumstances. Some potential examples include: Deciding whether to pursue debtor-in-possession (DIP) financing Dealing with commercial leases and other executory contracts Conducting “Section 363 sales”... - Published: 2026-05-29 - Modified: 2026-07-21 - URL: https://elpllc.law/blog/understanding-section-363-sales-in-chapter-11-bankruptcies/ As a general rule, companies that are seeking to reorganize their debts under Chapter 11 must continue to operate in the ordinary course of business. Among other things, this means that they generally cannot sell assets that they would not otherwise sell. However, Section 363 of the U. S. Bankruptcy Code provides a key exception, and conducting “Section 363 sales” can be a strategic approach to protecting insolvent companies’ long-term viability in some cases. Learn more from an experienced Miami Chapter 11 bankruptcy lawyer at Edelboim Lieberman: Using Section 363 Sales to Dispose of Assets During the Chapter 11 Bankruptcy Process Section 363 of the U. S. Bankruptcy Code allows Chapter 11 debtors to sell assets outside of the ordinary course of business provided that they comply with the statute’s procedural requirements. For debtors, conducting Section 363 sales can provide access to much-needed capital while also eliminating debts and other contractual obligations associated with undesirable assets. Acquiring assets through a Section 363 sale can offer several benefits for purchasers as well—and this means that conducting a Section 363 sale can be a viable strategy in a wide range of circumstances. Here is an overview of the major steps in the process: 1. Identifying the Asset (or Assets) to Be Sold The process begins with the Chapter 11 debtor identifying the asset (or assets) to be sold. Since the goal of the Chapter 11 process is to preserve the debtor’s ability to continue operating as a going concern, the identified asset (or assets) should not be essential to the debtor’s core business operations. With that said, debtors can dispose of substantial assets through the Section 363 sale process if they choose to do so—provided that the bankruptcy court approves. 2. Securing Court Approval to Pursue the Section 363 Sale Process After identifying the asset (or assets) to be sold, the next major step is to secure the bankruptcy court’s approval to proceed with the Section 363 sale process. To secure the bankruptcy court’s approval, a Chapter 11 debtor must file a motion outlining the bidding procedures to be used. These include (but are not limited to): Bidding deadlines and the proposed auction date; The requirements for submitting a qualified bid; and, Procedures for dealing with any executory contracts related to the asset (or assets) to be sold. Once a Chapter 11 debtor files a motion seeking approval for a Section 363 sale, the bankruptcy court will generally schedule a hearing before rendering a decision. If the bankruptcy court schedules a hearing, the debtor should be prepared to demonstrate that its proposed bidding procedures are designed to help maximize the proceeds of the sale for the benefit of its creditors. 3. Engaging a “Stalking Horse” Bidder If the bankruptcy court approves the debtor’s request to conduct a Section 363 sale, the debtor will then typically seek to engage a “stalking horse” bidder (though Chapter 11 debtors can also seek to engage stalking horse bidders earlier in the process if desired). A stalking horse bidder places the initial bid on the asset (or assets) to be sold, and the debtor and the stalking horse bidder negotiate a purchase agreement that will serve as the template for any additional bids. Stalking horse bidders will typically receive incentives for their involvement, such as a termination fee if the debtor sells the asset (or assets) to a third party. 4. Providing Notice and Marketing the Asset (or Assets) to Be Sold Regardless of whether a Chapter 11 debtor chooses to use a stalking horse bidder, it must provide notice of the proposed sale and market the... - Published: 2026-05-22 - Modified: 2026-07-21 - URL: https://elpllc.law/blog/landlord-tenant-issues-in-business-bankruptcies-in-south-florida/ When a commercial landlord or tenant files for bankruptcy, both parties need to be careful to protect their rights during the bankruptcy process. While protections are afforded to both parties in this scenario, landlords and tenants must be equally proactive in leveraging those protections. In South Florida, engaging an experienced Miami business bankruptcy attorney is the first step in the process—and both parties should be prepared to work with their legal counsel to target a favorable resolution under the circumstances at hand. When a Commercial Landlord Files for Bankruptcy When a commercial landlord files for a business bankruptcy under Chapter 11, a threshold issue for both parties is whether the landlord will reject the parties’ lease. Commercial leases qualify as executory contracts under the U. S. Bankruptcy Code; and, as a general rule, Chapter 11 debtors have three options for dealing with executory leases during the reorganization process: Assume – One option is to assume the lease. This keeps the lease intact, and both parties remain bound by their existing contractual obligations. In order to assume a commercial lease during a Chapter 11 bankruptcy, a landlord must first cure any outstanding monetary defaults, and then it must provide “adequate assurance” that it will be able to meet its contractual obligations going forward. Assume and Assign – A second option is to assume and assign the lease. This involves transferring the landlord’s contractual rights and obligations to a third party—such as an unrelated entity that acquires the leased premises through a Section 363 sale. With an assumption and assignment, the assignee (rather than the landlord) must provide adequate assurance to the tenant. Reject – The landlord’s third option is to reject the lease. While Chapter 11 debtors have the right to reject executory contracts during bankruptcy, doing so constitutes a breach of the underlying agreement. While this generally gives the tenant the right to treat the parties’ lease as terminated and vacate the premises, the tenant may also remain in the premises for the remainder of the current lease term. If a commercial landlord rejects a lease during a business bankruptcy and the tenant chooses to remain in the leased premises, this raises a host of other legal considerations for both parties. While the parties must generally continue to act as though the lease is still in place, the remedies that are available to the tenant in the event of landlord noncompliance are generally limited to offsetting its damages against its rent due. Additionally, while tenants can seek rejection damages if they vacate the premises, tenants cannot seek these damages if they choose to remain. The fact that tenants are generally restricted to offsetting any damages (other than rejection damages) against their rent due also means that remaining in the premises could lead to difficult and unfavorable circumstances in some cases. For example, if the landlord refuses to make necessary repairs or maintain common areas in accordance with the parties’ lease, the tenant may be forced to deal with deteriorating (and potentially dangerous) property conditions. As a result, informed decision-making is critical, and commercial tenants whose landlords have filed for bankruptcy should work with experienced legal counsel to ensure they make sound decisions in their long-term best interests. When a Commercial Tenant Files for Bankruptcy Many of the same considerations come into play when the shoe is on the other foot—though commercial landlords will have some additional important considerations in this scenario as well. When a commercial tenant files for bankruptcy under Chapter 11, key considerations for the landlord include: 1. The Automatic Stay Filing for bankruptcy under Chapter 11 triggers... - Published: 2026-05-15 - Modified: 2026-07-21 - URL: https://elpllc.law/blog/10-key-considerations-when-targeting-an-early-settlement-in-a-commercial-dispute/ When facing a commercial dispute, efficiently achieving a favorable resolution is generally the best-case outcome. Not only does this minimize the costs of the dispute resolution process, but it also reduces disruptions to your business and allows you to refocus on managing your company’s day-to-day operations and increasing its long-term profitability. But before you target an early settlement, there are some key considerations to keep in mind. Keep reading to learn more from an experienced Miami commercial litigation attorney at Edelboim Lieberman. Important Questions to Answer When Deciding How to Approach Commercial Settlement Negotiations While securing a quick settlement is typically the ideal resolution when facing a commercial dispute, it is important not to focus on settling solely for the purpose of moving on. As with all important business matters, you need to make an informed decision focused on your company’s long-term best interests. With this in mind, here are 10 important questions to answer when deciding how to approach commercial settlement negotiations: 1. Does Your Company Have a Strong Interest in Avoiding Litigation? One of the first key considerations is whether your company has a strong interest in avoiding litigation. If there is zero appetite for litigating the dispute at hand, then pursuing a settlement will be the only practical alternative. Of course, if litigating isn’t on the table, this is a fact that should remain strictly confidential—as the prospect of litigation can play a key role in settlement negotiations. 2. Does the Other Party Have a Strong Interest in Avoiding Litigation? Along with considering your company’s appetite for litigation, it will be important to assess whether the other party has a strong interest in avoiding litigation as well. If you do not believe that the other party is prepared to litigate, this is a factor that you can—and should—take into account during the settlement negotiation process. 3. Is There Mutual Interest in Preserving the Parties’ Commercial Relationship? As a related matter, it will be important to assess whether there is a mutual interest in preserving the parties’ commercial relationship. If your company is facing a dispute with a vendor or customer, for example, how important is the relationship to your company? How important is the relationship to the vendor or customer? If both parties wish to continue working together, this could influence how they approach the settlement process and how willing they are to compromise. 4. How Strong is Your Company’s Claim for Damages? The strength of your company’s claim for damages is a key factor as well. As a general rule, the stronger your company’s claim, the less willing you should be to negotiate. With that said, when targeting an early settlement, the other factors on this list still require consideration—and you may need to be willing to compromise to resolve the matter as efficiently as possible (if this is a priority). 5. Does the Other Party Have (or Believe it Has) Strong Defenses Available? In this same vein, the strength (or perceived strength) of the other party’s defenses also requires consideration. If the other party believes that it has strong grounds to dispute liability—or if it might attempt to pursue counterclaims against your company—this will need to factor into your overall settlement calculus as well. 6. What Terms of Settlement Should Your Company Seek? One of the benefits of settling a commercial dispute, as opposed to pursuing litigation, is that the options for reaching a resolution are essentially limitless. With this in mind, rather than focusing solely on damages, it may also be worth considering other terms of settlement. Is this an opportunity to renegotiate with... - Published: 2026-04-30 - Modified: 2026-05-01 - URL: https://elpllc.law/blog/business-divorce-key-considerations-for-bringing-your-partnership-to-an-end/ When business partners decide to go their separate ways, making informed decisions about how to end their partnership is key to protecting the interests of all parties involved. In many cases, this will include not only the interests of the individual partners but also the interests of the partnership’s employees, creditors, and clients or customers. While navigating a “business divorce” can be a complex process, there are clear steps to follow, and an experienced Miami partnership dispute attorney can provide strategic advice and representation every step of the way. 5 Key Considerations When Preparing for a Business Divorce In many ways, navigating a business divorce is similar to navigating any other complex business transaction. Informed decision-making is essential, and partners must focus on their long-term goals while addressing the immediate circumstances. Additionally, while business divorces can—and often do—go smoothly, contentious disputes can arise; when they do, finding a mutually agreeable path forward can be critical for avoiding unnecessary costs and delays. With this in mind, here are five key considerations when preparing for a business divorce in South Florida: 1. The Nature of the Split One of the first—and most important—decisions that needs to be made is the nature of the split. Will one partner exit the business while the other takes over full ownership and control? Will the partners split the business and become competitors? Will they pursue one of the many other alternatives that are available? Determining the nature of a business divorce is a key first step because this will determine what steps come next in the process. If the partners are in agreement (or can reach an agreement) on how to split their business, this can set the stage for efficient negotiations aimed at bringing their business relationship to an end. If the partners cannot agree on how to end their business relationship, it will be important to review their partnership agreement to see what guidance it provides regarding both dissolution of the partnership and dispute resolution. 2. The Terms of the Split After determining the nature of the partners’ split, the next major step is to determine the terms of their separation. In most cases, this will involve negotiating an agreement that addresses all pertinent issues and provides certainty for the future. Depending on the circumstances, some examples of key terms the partners may need to address include: Valuation of the partners’ respective ownership interests Payment terms (including the terms of any buyout financing) Ownership of intellectual property Ownership of customer relationships and goodwill Division of the business (if applicable) When going through a business divorce, a comprehensive approach is key. Leaving any issues unresolved can lead to disputes down the line. An experienced Miami partnership dispute attorney will be familiar with the issues the partners need to address and can provide comprehensive, tailored advice to ensure the partners’ separation is complete, final, and thoroughly documented. 3. Finding a Way to Come to Terms Even when business partners agree that it is time to end their partnership, they may have very different views on how the split should unfold and what rights and obligations they should have going forward. Depending on the complexity of the business and the nature of the partners’ split, negotiating their separation could be a time-intensive process that requires careful consideration of various legal, financial, and practical issues. Broadly speaking, finding a way to come to terms starts with putting all pertinent issues on the table. This will allow the partners to take a comprehensive and forward-thinking approach and help them avoid last-minute issues (or issues that go overlooked entirely). Here,... - Published: 2026-04-23 - Modified: 2026-05-01 - URL: https://elpllc.law/blog/rejecting-executory-contracts-in-a-chapter-11-bankruptcy-key-legal-and-practical-considerations/ While the primary focus of the Chapter 11 bankruptcy process is restructuring a company’s debts so that it can meet its payment obligations on an ongoing basis, companies also have the ability to reject certain contracts during the process. Rejecting executory contracts can relieve companies of their ongoing payment obligations—and help preserve their financial stability going forward. However, there are several important factors to consider before rejecting an executory contract, and company executives will need to work closely with an experienced Miami Chapter 11 bankruptcy lawyer to ensure they make informed, strategic decisions. Here are some key considerations: Understanding What Qualifies as an “Executory Contract” The option for companies to reject executory contracts during the Chapter 11 bankruptcy process is established in 11 U. S. C. Section 365. Under Section 365, companies may elect to reject executory contracts at any time during the process; and, if a company does not affirmatively assume an executory contract during the process, the contract will be deemed rejected. The rejection of executory contracts can have significant financial, legal, and practical implications for both debtors and creditors. This raises a critical question: What is an “executory contract? ” An executory contract is any contract under which both parties have continuing performance obligations. While there are several possible examples, one of the most common examples is a commercial lease. Under a commercial lease, the lessor has a continuing obligation to let the premises in accordance with the terms of the parties’ agreement, and the lessee has a continuing obligation to pay rent and otherwise comply with its contractual obligations. Since executory contracts represent ongoing financial liabilities for debtors, they can play a central role in a debtor’s ability to meet its aggregate financial obligations post-reorganization under Chapter 11. Rejecting executory contracts provides an opportunity to reduce a debtor’s aggregate financial obligations post-bankruptcy. While this can have significant benefits in many cases, as discussed in greater detail below, there are important countervailing considerations. Understanding What it Means to “Reject” an Executory Contract While rejecting an executory contract during the Chapter 11 bankruptcy process eliminates the debtor’s ongoing financial responsibility under the contract, this does not mean that the debtor’s concerns related to the contract simply go away. Rather, when a debtor rejects an executory contract during a Chapter 11 bankruptcy: The debtor remains liable for any amounts due as a result of pre-rejection defaults; and, The creditor has a claim against the debtor for damages resulting from the rejection. Thus, while rejecting an executory contract during a Chapter 11 bankruptcy alleviates the debtor of its payment (and other performance) obligations on a go-forward basis, the debtor is not absolved of its financial obligations under the contract entirely. In this scenario, the creditor may have little (if any) incentive to work with the debtor and may simply pursue litigation to collect as much as possible. Alternatives to Rejecting Executory Contracts Under Chapter 11 With this in mind, when assessing the desirability of rejecting executory contracts in a Chapter 11 bankruptcy, company executives should also consider alternatives to rejection. Broadly speaking, the alternatives to rejecting an executory contract are: Assuming the Contract One option is to “assume” the debtor’s executory contracts, which means the debtor will retain them post-bankruptcy. In order to assume an executory contract during the Chapter 11 bankruptcy process, a debtor must: Pay outstanding amounts due under the contract (or provide “adequate assurance” that these amounts will be paid); and, Cure any other defaults under the contract (or provide “adequate assurance” that these defaults will be cured). Generally speaking, choosing between rejection and assumption of an... - Published: 2026-04-16 - Modified: 2026-05-01 - URL: https://elpllc.law/blog/when-is-and-isnt-debtor-in-possession-financing-a-good-option/ For companies with more debt than they can afford, reorganizing through the Chapter 11 bankruptcy process can help them regain financial stability and build toward a profitable future. When necessary, debtor-in-possession (DIP) financing can serve as a financial bridge between a company’s pre-bankruptcy financial struggles and the end of the reorganization process. So, when (and isn’t) debtor-in-possession financing a good option? Learn about some key considerations from a Miami business bankruptcy attorney at Edelboim Lieberman: What is Debtor-in-Possession Financing? Debtor-in-possession financing is a special type of loan that companies can use to manage their costs during a business bankruptcy. This includes not only the costs of the bankruptcy process itself, but also payroll, rent, and other business expenses. Even when businesses cannot secure additional financing outside the Chapter 11 bankruptcy process, they may be able to obtain debtor-in-possession financing. Lenders willing often be willing to extend DIP financing to insolvent businesses for three main reasons: (i) the terms of DIP financing are subject to court approval (and therefore less likely to be challenged by the business’s other creditors); (ii) lenders that extend DIP financing are entitled to special protections during the bankruptcy process; and, (iii) there are restrictions on how insolvent businesses can use DIP funds. But even if a business has access to DIP financing, that does not necessarily mean taking on additional debt is the business’s best option. Despite the protections afforded to DIP lenders, debtor-in-possession financing is still considered high-risk, and lenders calculate DIP interest rates accordingly. The fact that DIP lenders are entitled to additional protections means that businesses taking on debtor-in-possession financing are in a less advantageous position vis-à-vis these lenders. As with all aspects of the business bankruptcy process, informed decision-making is required. When Is Debtor-in-Possession Financing a Good Option? Broadly speaking, debtor-in-possession financing can be a good option for businesses that have a clear path (or, at least, a relatively clear path) toward a solid financial future. If reorganizing a business’s debts under Chapter 11 is likely to provide the financial relief the business needs to continue operating over the long term, then pursuing reorganization could be the best approach. If the business does not have the financial resources to get through the reorganization process, DIP financing could be the solution. With this in mind, securing debtor-in-possession financing can be a good option if: 1. Reorganizing Under Chapter 11 is a Viable Path Toward Financial Stability Businesses can seek (and lenders will be willing to offer) debtor-in-possession financing when reorganizing under Chapter 11 is a viable path toward financial stability. Reorganizing under Chapter 11 involves developing a payment plan that allows the business to meet its debt obligations while also managing its other operating expenses. In many cases, a Subchapter V bankruptcy under Chapter 11 will be the most cost-effective path forward. 2. The Business is Dealing with a Short-Term Cash Shortage Debtor-in-possession financing is intended to manage short-term cash shortages during the Chapter 11 reorganization process. Generally speaking, it is not a tool for making additional capital investments, and businesses that have taken out DIP loans must strictly comply with the limitations on authorized expenditures. If a business does not need additional access to capital in order to get through the reorganization process, then seeking DIP financing generally won’t be a suitable option. 3. The Business Has a Clear Plan for Moving Forward Beyond having a viable path toward financial stability, businesses that pursue reorganization under Chapter 11 should also have a clear plan for moving forward. Reorganizing a business’s debts will not solve the business’s financial problems on its own. For... - Published: 2026-03-31 - Modified: 2026-04-30 - URL: https://elpllc.law/blog/defending-against-negligence-claims-key-strategic-considerations-for-south-florida-businesses/ Negligence claims can present substantial liability risks for South Florida businesses. This includes negligence claims filed by both individuals and other businesses, as well as claims related to everything from car accidents and building collapses to dangerous products and substandard services. In all cases, a strategic defense is critical, and it starts with engaging an experienced Miami commercial litigation attorney who can provide immediate advice and representation. There are several key considerations involved in defending against negligence claims, both in and out of court. Here are some of the preliminary considerations that business owners and executives should be aware of: A Clear and Comprehensive Understanding of the Facts is Essential When facing negligence allegations, a clear and comprehensive understanding of the facts is essential. Business owners and executives need complete and reliable information to make informed decisions—and relying on anything less than a clear and comprehensive understanding of the facts can lead to mistakes that could (and should) have been avoided. Gaining a clear and comprehensive understanding of the facts involves conducting a thorough investigation. Depending on the nature of the claim, this may involve conducting an on-scene investigation, conducting an internal investigation, or gathering relevant evidence through various other means. When conducting an investigation, it is essential to protect the attorney-client privilege, as failing to do so could result in an obligation to disclose findings unfavorable to the company’s defense. Making Informed Decisions Requires an Unbiased Assessment of Liability After gaining a clear, comprehensive understanding of the facts, the next step is to conduct an unbiased assessment of the company’s liability. Making informed decisions requires due consideration of the strengths and weaknesses of all potential claims and defenses. Overlooking potential claims or making unwarranted assumptions about the company’s ability to mount a successful defense can also lead to costly mistakes. Conducting an unbiased assessment of liability will generally involve working with the company’s litigation counsel. Evaluating potential claims and defenses requires in-depth familiarity with the applicable law. Different duties, standards of care, and defenses can apply in different scenarios, so it is critical to perform a thorough, detailed liability assessment based on the specific circumstances at hand. Insurance Coverage (and Insurance Companies) Can Play a Central Role in Negligence Litigation When a company’s commercial general liability (CGL) policy or another insurance policy covers (or arguably covers) a viable claim, it will be important to make an informed decision about whether to seek coverage. Insurance coverage (and insurance companies) can play a central role in all types of negligence litigation, and, if you decide to seek coverage, your company’s insurer could effectively take over your company’s defense. With that said, it will still be important to play an active role in the litigation process. From coverage disputes to disagreements over whether to accept liability, various issues can arise. Ultimately, your company’s insurers will put their best interests first, and if those interests do not align with your company's, you will need to be prepared to respond appropriately. Timing Can Also Play a Central Role in Several Ways Along with insurance coverage, timing can play a central role in all types of negligence-related litigation—and in various ways. For example, in some cases, acting quickly can facilitate favorable settlement negotiations (when warranted). In others, slowing the process can put financial pressure on the other side, ultimately leading to a favorable, cost-effective resolution. Deadlines during the litigation process can also come into play here. For example, discovery is often a key stage of the litigation process in negligence cases, and discovery deadlines can create pressure on both sides. Likewise, in some cases, plaintiffs’... - Published: 2026-03-24 - Modified: 2026-10-23 - URL: https://elpllc.law/blog/subchapter-v-vs-chapter-11-which-option-should-small-businesses-choose/ Most businesses that need to reorganize their debts to regain financial stability have two primary options: file under Subchapter V or Chapter 11. While Subchapter V has been part of the U. S. Bankruptcy Code since 2019, it remains relatively unknown. However, filing under Subchapter V will be the best option for many qualifying businesses, as this generally reduces both the time and the costs involved. Learn more from an experienced Miami bankruptcy lawyer at Edelboim Lieberman. Is Your Business Eligible to File Under Subchapter V? Understanding the Debt Limit Before we discuss the benefits of filing under Subchapter V compared to pursuing a traditional Chapter 11 reorganization, we should first address eligibility. Not all businesses that are eligible to file under Chapter 11 are also eligible to file under Subchapter V. This is because Subchapter V contains a debt limit that is intended to preserve this option for “small business debtors. ” Under the original language of Subchapter V, the debt limit was set at $2,000,000 for aggregate noncontingent, liquidated, secured, and unsecured debts, excluding debts owed to affiliates and insiders. However, the Subchapter V debt limit is subject to annual inflation adjustments, and, as of March 31, 2026, the current debt limit is $3,424,000. Understanding the Benefits of Reorganizing Under Subchapter V (Compared to a Traditional Chapter 11 Filing) If your business qualifies as a “small business debtor” under Subchapter V, why should you consider a Subchapter V filing instead of a traditional Chapter 11 reorganization? For eligible businesses, filing under Subchapter V offers several benefits, including: No Disclosure Statement – Under Subchapter V, debtors are not required to file a disclosure statement. A disclosure statement is a detailed record of a debtor’s finances, financial history, and financial projections, and it is subject to court approval. Preparing a disclosure statement is itself a time-consuming and expensive process, so avoiding this step is a key benefit of pursuing reorganization under Subchapter V. No Competing Reorganization Plans – Under Chapter 11, creditors may file competing reorganization plans. Dealing with competing reorganization plans also increases time and costs, and significant differences between debtors’ and creditors’ proposals can lead to contentious, time-consuming, and resource-intensive disputes. However, in Subchapter V bankruptcy cases, only the debtor has the right to submit a plan for the court’s approval. No Creditors’ Committee – Filing under Subchapter V also bypasses the creditors’ committee provisions of Chapter 11. In a traditional Chapter 11 bankruptcy case, unsecured creditors have the right to form a committee to represent their interests, and the obligation to pay the committee’s costs and legal fees falls on the debtor’s bankruptcy estate. This is not a concern under Subchapter V. No “Absolute Priority” Rule – Under Chapter 11, all unsecured creditors in higher priority classes have the right to be paid in full before creditors in lower priority classes are entitled to any distributions from the debtor’s bankruptcy estate. This “absolute priority” rule limits debtors’ options and serves as fertile ground for disputes in many cases. Chapter 11’s absolute priority rule does not apply in bankruptcy proceedings under Subchapter V. Creditor Consent Not Required – In traditional Chapter 11 bankruptcy cases, at least one impaired creditor must consent to the terms of the debtor’s reorganization plan. However, under Subchapter V, creditor consent is not required. As long as the debtor meets the requirements for nonconsensual approval, the bankruptcy court can (and generally must) approve the debtor’s plan even if no creditors approve. These are in addition to the benefits of pursuing a traditional Chapter 11 filing, including the automatic stay. Additionally, while debtors in traditional... - Published: 2026-03-17 - Modified: 2026-04-30 - URL: https://elpllc.law/blog/considering-chapter-11-key-post-filing-mistakes-to-avoid/ Reorganizing a company’s debts under Chapter 11 requires an informed and strategic approach. This applies at all stages of the process. If business owners and executives aren’t careful, they can make mistakes that can have serious financial consequences—including mistakes that can threaten their company’s ability to successfully pursue reorganization in some cases. Learn more from an experienced Miami Chapter 11 bankruptcy lawyer at Edelboim Lieberman. What Not to Do Once Your Company Has Filed for Bankruptcy Under Chapter 11 In a previous article, we discussed five common mistakes to avoid before initiating the Chapter 11 bankruptcy process. Here, we are looking at post-filing mistakes. Once a company has filed for reorganization under Chapter 11, it is imperative to avoid mistakes, including (but not limited to): 1. Failing to Maintain Normal Business Operations As a general rule, companies that are pursuing reorganization under Chapter 11 should maintain their normal business operations during the bankruptcy process. If a company needs help managing its cash flow or any other aspect of its operations, it should seek appropriate help to ensure that its financial position does not become materially worse while its Chapter 11 case is pending. One of the key benefits of the Chapter 11 process is that filing a bankruptcy petition triggers an automatic stay on creditors’ collection efforts. As a result, companies pursuing reorganization should be able to manage their normal business operations without the risk of facing repossession or foreclosure. With that said, an informed and cautious approach is required, as insolvent companies must demonstrate their ability to operate profitably to assuage their creditors’ concerns. 2. Failing to Seek Debtor-in-Possession Financing if Necessary For companies that need additional financial resources in order to maintain their normal business operations during the Chapter 11 reorganization process, securing debtor-in-possession financing can provide a path forward. As we have discussed previously, debtor-in-possession financing serves as a bridge between the beginning and the end of the bankruptcy process. When needed, securing debtor-in-possession financing promptly can be one of the keys to efficiently pursuing a successful Chapter 11 reorganization. 3. Incurring Other Debts While securing debtor-in-possession financing can be a key aspect of a successful Chapter 11 reorganization, incurring other debts can have the opposite effect. With this in mind, before incurring any other debts during the reorganization process, business owners and executives should consult with their company’s bankruptcy counsel to discuss the options they have available. Not only can incurring additional debt during the Chapter 11 reorganization process negatively impact a company’s ability to satisfy its proposed reorganization plan (and otherwise manage its operations on an ongoing basis), but it can also give rise to creditor claims during the bankruptcy process. This can lead to additional costs and complications that can (and generally should) be avoided with an informed and strategic approach. 4. Executing Improper Post-Petition Transfers Companies pursuing reorganization under Chapter 11 should also be careful to avoid improper post-petition transfers. Similar to pre-petition fraudulent and preferential transfers, improper post-petition transfers involve making payments to certain creditors, related parties, or other entities that impair creditors’ rights during the bankruptcy process. Improper post-petition transfers can also give rise to creditor claims, and companies may be required to unwind such transfers in some cases. 5. Failing to Respond Effectively to Creditor Objections While most Chapter 11 bankruptcy proceedings—and especially those filed under Subchapter V—go fairly smoothly, creditors can raise objections on various grounds. If a creditor raises an objection to the dischargeability of its claim, responding in a timely and effective manner will be critical for resolving the objection as cost-effectively and favorably as possible. What... - Published: 2026-02-27 - Modified: 2026-03-23 - URL: https://elpllc.law/blog/subchapter-v-debt-limit-in-2026-is-your-business-eligible-to-file/ Subchapter V of the U. S. Bankruptcy Code allows qualifying small businesses to reorganize their debts without going through the full Chapter 11 reorganization process. The Subchapter V “small business bankruptcy” process significantly reduces time and costs, as it eliminates many of the more burdensome requirements that apply in traditional Chapter 11 cases. Learn more from an experienced Miami business bankruptcy attorney at Edelboim Lieberman. The Definition of a “Small Business” Under Subchapter V Filing under Subchapter V is exclusively an option for “small businesses,” or, more specifically, “small business debtors. ” This term is defined in Section 101(51D) of Chapter 11: “The term ‘small business debtor’... means a person engaged in commercial or business activities ... that has aggregate noncontingent liquidated secured and unsecured debts as of the date of the filing of the petition or the date of the order for relief in an amount not more than $2,000,000 (excluding debts owed to one or more affiliates or insiders) not less than 50 percent of which arose from the commercial or business activities of the debtor ... . ” Thus, the debt threshold in Section 101(51D) is the key factor for determining whether a business is eligible to file under Subchapter V. While the debt threshold was originally set at $2,000,000, it is adjusted annually for inflation. As of January 1, 2026, the Subchapter V debt limit was $3,424,000. However, this could change later in the year. Annual inflation adjustments are typically made on April 1, and Congress is considering enacting an amendment that would immediately increase the Subchapter V debt limit to $7. 5 million. The debt limit was temporarily increased to $7. 5 million during the COVID-19 pandemic, and broad support has caused Congress to consider reinstating this enhanced debt limit on a permanent basis. While the vast majority of businesses that have less than $3,424,000 in aggregate noncontingent liquidated secured and unsecured debts will qualify to file under Subchapter V (assuming they meet the other requirements to pursue a business bankruptcy under Chapter 11), there are exceptions. Specifically, the definition of “small business debtors” under Subchapter V excludes: Any member of a group of affiliated businesses that has aggregate noncontingent liquidated secured and unsecured debts in an amount greater than $3,424,000 (excluding debt owed to one or more affiliates or insiders); and, Any corporation that is subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, and any affiliates of these entities. Calculating a business’s noncontingent liquidated debts can be more challenging in some cases than others. For business owners and executives contemplating reorganization and with questions about their business’s eligibility to file under Subchapter V, an experienced Miami business bankruptcy attorney can assist with assessing eligibility and considering any available alternatives. Additional Considerations for Business Owners and Executives Contemplating Reorganization Under Subchapter V While determining whether a business meets the definition of a “small business debtor” is a threshold issue for considering reorganization under Subchapter V, there are several other issues that business owners and executives will want to consider as well. Some examples of these additional considerations include: Is the Business Prepared to Propose a Reorganization Plan? When filing under Subchapter V, businesses have the opportunity (and the obligation) to propose a reorganization plan. While businesses do not need to file a proposed reorganization plan with their bankruptcy petition, they must file their proposed plan within 90 days of their initial filing. With this in mind, as a practical matter, businesses will generally want to ensure they are prepared to propose a reorganization plan before filing.... - Published: 2026-02-20 - Modified: 2026-03-23 - URL: https://elpllc.law/blog/considering-chapter-11-key-pre-filing-mistakes-to-avoid/ Filing for bankruptcy under Chapter 11 requires an informed and strategic approach. While reorganizing a business’s debts under Chapter 11 can have significant long-term financial benefits, it isn’t necessarily the best option in all scenarios—and, when it is the best option, mistakes early in the process can lead to unnecessary (and costly) issues later on. With this in mind, here are some key pre-filing mistakes to avoid from an experienced Miami Chapter 11 bankruptcy lawyer. Failing to Balance the Benefits and Drawbacks of Filing Making an informed decision about whether to file for reorganization under Chapter 11 requires a careful balancing of the relevant benefits and drawbacks. While filing under Chapter 11 can have significant benefits in the right circumstances, there are inherent drawbacks to the bankruptcy process, and these drawbacks may outweigh the benefits in some cases. For example, one of the drawbacks of reorganizing under Chapter 11 is the formality of the process. This formality makes the process time-consuming and adds to the costs. The formal structure of the Chapter 11 bankruptcy process also provides various opportunities for creditors to fight to protect their claims in adversarial proceedings—which it may be possible to avoid through various alternatives. Failing to Give Due Consideration to Possible Alternatives This brings us to our second pre-filing mistake: when considering a Chapter 11 bankruptcy filing, it is also important to consider possible alternatives. This includes bankruptcy and non-bankruptcy alternatives such as: Filing for a Subchapter V small business bankruptcy Filing a “small business case” under the BAPCPA Renegotiating agreements with key creditors, vendors, and customers Entering into forbearance agreements with key creditors Conducting an informal debt restructuring outside of Chapter 11 These are in addition to alternatives such as filing for Chapter 7 bankruptcy and pursuing an assignment for the benefit of creditors (ABC). However, as these options focus on winding down a business’s operations and liquidating its assets, they are typically not viable alternatives for businesses focused on regaining financial stability. Filing for Reorganization Under Chapter 11 Too Soon Given the importance of considering alternatives, it is important not to file for Chapter 11 reorganization too soon. While businesses can generally back out of the reorganization process if necessary, at this stage, they will have already invested substantial resources in pursuing their Chapter 11 filings. For businesses in financial distress, this can have significant consequences—not only in terms of sunk costs but also in delaying a resolution to their financial struggles. Deciding when to file for Chapter 11 can involve strategic considerations as well. When you speak with a Miami Chapter 11 bankruptcy lawyer at our firm about your company’s options, your lawyer will be able to walk you through everything you need to know. Waiting Too Long to File for Reorganization Under Chapter 11 While it is important not to file for reorganization too soon, business owners and executives must also ensure that they do not wait too long to file. Waiting too long can lead to various adverse consequences, including (but not limited to): Facing collection actions that could have been prevented by triggering the automatic stay with a Chapter 11 filing; Executing transactions that are subject to being challenged (and potentially unwound) as fraudulent or preferential transfers; and, Increased risk of facing turnover actions and other adversary proceedings from dissatisfied creditors during the bankruptcy process. Once the decision is made to file, it will usually make sense to begin the process promptly. If there is an immediate threat of foreclosure or another collection action, the initial Chapter 11 filing can be made on an emergency basis. Filing Under Chapter... - Published: 2026-02-13 - Modified: 2026-03-23 - URL: https://elpllc.law/blog/5-potential-outcomes-of-shareholder-disputes/ Disputes between shareholders can have both short-term and long-term consequences. In the short term, shareholder disputes can disrupt the business’s daily operations and prevent key decisions from being made. In the long term, shareholder disputes can threaten the business’s viability as a going concern—and this can make it critical to find a path forward that preserves the value that the business has built over the years. Learn more from an experienced Miami shareholder dispute attorney at Edelboim Lieberman: What Are the Options for Resolving a Shareholder Dispute in Florida? Broadly speaking, there are five main options for resolving a shareholder dispute in Florida. However, the options available in any particular case will depend heavily on the specific circumstances. When facing a shareholder dispute, assessing the options that are available requires careful consideration of key factors such as: The nature of the dispute The terms of the shareholder agreement The total number of shareholders (including any not involved in the dispute) Each shareholder’s personal financial capacity The business’s value and long-term viability These factors, among others, will inform the options that are on the table—and this, in turn, will inform each shareholder’s decision-making regarding their dispute. With this in mind, the main options that are generally available in these scenarios include: 1. Negotiating a Buyout One possibility is to negotiate a buyout. If one or more shareholders are willing to purchase the other shareholder’s ownership interest (or the other shareholders’ ownership interests), this can enable a clean split that otherwise keeps the business intact. Of course, the shareholders will need to agree on who is staying and who is going, and on a price. But assuming they can come to terms on these issues, they can execute a buyout and move on. 2. Dividing the Company Another possibility is to divide the company, with one shareholder (or group of shareholders) continuing to own and operate one portion of the business while another shareholder (or group of shareholders) continues to own and operate another. While this won’t be a viable option in all cases, it can be a solution when a company has multiple distinct lines of business or multiple facilities. 3. Selling the Company A third option is to sell the company in its entirety. This will also require the shareholders to agree on a price (subject to the terms of their shareholder agreement); but, if successful, it will allow all of the company’s existing shareholders to exit and go their separate ways. For those who plan to start a new business after the sale, it will be important to ensure that they are not subject to any unduly burdensome competitive restrictions. 4. Winding Down the Business A fourth option is to wind down the business. If none of the shareholders are interested in continuing to operate the business, and selling to a third party is not a viable option, then winding down may be the only practical solution. Here too, however, the shareholders will need to agree on a path forward—from how and when to wind down the business to how to distribute its remaining assets after satisfying its outstanding financial obligations. 5. Finding an Amicable Path Forward Even in highly contentious scenarios, finding an amicable path forward may be an option. By working with an attorney experienced in settling shareholder disputes, the shareholders may find a way to reach a settlement that also provides a solid foundation for the future. In some cases, mediation can be an effective tool as well. If the shareholders in a dispute share a common interest in keeping their business relationship intact, this alone... - Published: 2026-01-30 - Modified: 2026-03-23 - URL: https://elpllc.law/blog/partnership-disputes-when-one-partner-wants-to-break-up-and-the-other-doesnt/ While partnership disputes can involve numerous issues, in most cases, the partners will share a common goal of keeping the business intact and continuing to maximize its profitability. This common ground can prove crucial for resolving disputes amicably—and it can be a powerful motivator for reaching a compromise, even in highly contentious scenarios. But things change when one partner wants to break up, and the other doesn’t. In this scenario, the partners’ interests are diametrically opposed. As a result, both partners will generally have less incentive to compromise, and each will need to work closely with an experienced Miami partnership dispute attorney to ensure they make informed decisions with their own personal best interests in mind. Breaking Up a Partnership: Key Considerations for Finding a Path Forward You’re facing a dispute with your partner. While you’ve been able to keep things together in the past, the writing is on the wall: It’s time to move on. What can (and should) you do in this scenario? Here are some key considerations: Making Informed Decisions Starts with Reviewing Your Partnership Agreement Whenever you face a partnership dispute, the first step is to review the relevant terms of your partnership agreement. Well-drafted, carefully negotiated partnership agreements will often provide clear guidance in this scenario, while agreements drafted from generic forms will often raise more questions than answers. When reviewing your partnership agreement, focus on the terms regarding ownership, control, and dissolution. This includes (but is not limited to) any terms that address issues such as: Capital contributions and withdrawal or reimbursement rights Ownership of partnership property Voting rights regarding dissolution or disposition of the partnership Buyout rights or obligations Winding up the partnership Importantly, while these terms (among others) may provide a roadmap for moving forward, partners can—and frequently do—agree to different terms during the breakup process. In the vast majority of cases, it will still be in both partners’ interests to avoid protracted and costly litigation. If the alternative to a compromise is spending years in court, settling may be a viable option—though reaching a settlement could take longer and be more contentious than in other scenarios. That said, it will be important to examine the partnership agreement’s dispute-resolution provisions as well. Partnership agreements regularly include provisions requiring partners to mediate in good faith or to pursue arbitration rather than taking their claims to court. If your partnership agreement includes a mandatory mediation or arbitration clause (or both), this is a factor that you should take into account during your decision-making. What if your partnership agreement doesn’t provide clear guidance? If your partnership agreement doesn’t provide a roadmap for navigating a breakup, then negotiating a settlement and pursuing formal dispute resolution proceedings will be the only two practical options. Without a foundation upon which to base your settlement negotiations, you will need to focus on finding leverage while taking into account pertinent provisions of Florida’s partnership laws (or the governing law specified in your partnership agreement). Is a Buyout the Best Option Under the Circumstances? In many cases, when one partner wants to break up and the other doesn’t, a buyout is the best option. Again, partnership agreements often include buyout provisions designed specifically to address and avoid conflicts in this scenario. But, even if your partnership agreement doesn’t specify the terms of a buyout in the event of irreconcilable differences, you and your partner may both get the most benefit out of finding a way for one of you to exit the business while the other continues to operate. With that said, navigating a buyout may still involve resolving a variety... - Published: 2026-01-23 - Modified: 2026-03-23 - URL: https://elpllc.law/blog/filing-for-chapter-11-in-2026-key-insights-for-florida-business-owners/ In the right circumstances, reorganizing a business’s debts under Chapter 11 can be an effective way to restore its financial stability and position it for future success. Numerous businesses in Florida reorganize under Chapter 11 every year, and many well-known companies have used the reorganization process to put themselves back on a solid financial footing. Does this mean that your business should file for Chapter 11 in 2026? Here are some key insights from an experienced Miami Chapter 11 bankruptcy lawyer: 7 Key Insights About Chapter 11 Bankruptcy for Florida Business Owners As with all high-level business decisions, deciding whether to pursue a Chapter 11 bankruptcy requires a clear and comprehensive understanding of the benefits, drawbacks, and potential risks involved. While filing for Chapter 11 can be a sound long-term business strategy in many cases, it isn’t always the right approach for resolving a business’s financial instability. With this in mind, Florida business owners who are contemplating a Chapter 11 filing should consider the following insights: 1. Chapter 11 is Focused on Maintaining (or Restoring) the Business’ Viability Although Chapter 7 and Chapter 11 are frequently discussed together, they could not be more different in their approaches to dealing with financial distress. Chapter 7 bankruptcies are “liquidation” bankruptcies—they focus on selling the business’s assets in order to pay down its debts (to the extent possible) before winding down its final affairs. Chapter 11 bankruptcies, in contrast, are “reorganization” bankruptcies. This means the goal is not to wind down the business, but to maintain (or restore) its viability as a going concern. As a result, business owners should only consider a Chapter 11 filing if they are prepared to do what it takes to comply with the terms of a reorganization plan while also working toward sustainability. 2. Filing Under Chapter 11 Also Affords Immediate Benefits While the ultimate goal of filing for Chapter 11 is to establish long-term sustainability, it also affords immediate benefits. Most significantly, once a business properly initiates a federal Chapter 11 bankruptcy proceeding, its creditors are subject to an automatic stay. This automatic stay prevents its creditors from pursuing collection during the bankruptcy process. While businesses cannot initiate bankruptcy proceedings solely in an effort to evade their creditors’ collection efforts, this is a notable benefit that can provide immediate relief for businesses that are facing repossession, foreclosure, levies, and other collection actions. 3. Businesses Must Be Careful to Avoid Mistakes that Could Jeopardize the Benefits Chapter 11 Affords When contemplating reorganization, business owners must be careful to avoid mistakes that could jeopardize the benefits Chapter 11 affords. For example, fraudulent or preferential transfers can provide grounds for creditors to seek relief from the automatic stay, and other allegations of “bankruptcy fraud” can threaten to derail the process. Given these concerns, the process of preparing for a Chapter 11 filing should generally begin well before preparing the filing itself. 4. For Many (But Not All) Businesses, a Subchapter V Filing Will Be the Best Option Subchapter V of Chapter 11 establishes streamlined procedures for “small business” bankruptcies. As of January 2026, a “small business” is defined as one with less than $3,424,000 in noncontingent, liquidated, secured, and unsecured debts. Under Subchapter V, businesses remain in possession of their assets during the bankruptcy process, and creditor consent is not required for approval of the debtor’s proposed reorganization plan. These two benefits alone will make filing under Subchapter V an attractive (and cost-effective) option in many cases. 5. Making an Informed Decision Requires Careful Consideration of Several Factors As you can see from everything we’ve covered thus far, making... - Published: 2026-01-16 - Modified: 2026-03-23 - URL: https://elpllc.law/blog/how-do-i-make-sure-filing-under-chapter-11-is-the-right-choice-for-my-business/ While reorganizing under Chapter 11 can be a viable path forward for financially struggling businesses, it isn’t the right choice in all scenarios. When contemplating reorganization, business owners need to ensure they make informed, strategic decisions—whether that ultimately means filing under Chapter 11 or pursuing an alternative. With this in mind, how can you make sure filing under Chapter 11 is the right choice for your business? Here are some key considerations from an experienced Miami business bankruptcy attorney at Edelboim Lieberman: 5 Key Considerations for Deciding Whether to Reorganize Under Chapter 11 As a business owner who is contemplating a Chapter 11 bankruptcy filing, you have a lot to consider. Along with the potential benefits of filing under Chapter 11 (and the potential risks of waiting too long to make a decision), this includes the legal and financial practicalities of navigating the formal reorganization process. To make an informed decision about whether to move forward, you will need to carefully consider questions such as: 1. Are You Prepared to Meet the Requirements for Pursuing Reorganization? There are several substantive and procedural requirements for pursuing a Chapter 11 reorganization. While business owners can—and should—rely on their bankruptcy counsel to guide them through the process of preparing and filing their bankruptcy petitions and negotiating their reorganization plans, business owners must be prepared to play an active role at each stage along the way. If you aren’t prepared (or your team isn’t prepared) to do what is required, filing could prove to be a waste of time and money. 2. Will Reorganizing Under Chapter 11 Allow You to Achieve Your Business Goals? While filing under Chapter 11 affords a variety of benefits to struggling businesses generally, it will be important to assess whether reorganizing your business’s debts will allow you to achieve your business goals. Fundamentally, the underlying purpose of a Chapter 11 filing is to provide the financial stability needed to pursue a sustainable path toward long-term growth. If this isn’t what you have in mind, then you may be better off pursuing one of the various alternatives that are available. 3. Will You Be Able to Make a Reorganization Plan Work While Building Toward Profitability? Businesses that reorganize their debts under Chapter 11 must be able to meet their reorganized debt obligations on an ongoing basis—and do so while building toward profitability. Missing payments can lead to collection actions, and this can effectively undo the benefits of going through the Chapter 11 process. On the same token, if reorganizing doesn’t put a business in a position to achieve profitability going forward, it could face similar financial issues in the future. If this happens, the business may need to seek relief under the U. S. Bankruptcy Code (or through other means) again. 4. Have You Thoroughly Considered the Potential Drawbacks (and Risks)? While reorganizing under Chapter 11 can offer several financial benefits, it can also involve drawbacks. In some cases, filing under Chapter 11 can present risks as well—particularly when business owners have not made an informed decision about filing. For example, going through the reorganization process can trigger restrictions on borrowing and certain other financial transactions, and creditors can seek exceptions to the automatic stay in some circumstances. 5. Have You Thoroughly Considered the Alternatives? Finally, whenever you are considering reorganization under Chapter 11, it is important to evaluate the alternatives. Putting all the options on the table is the only way to ensure you make an informed decision. While liquidating under Chapter 7 may be a reasonable alternative in some cases, here, we’re primarily talking about alternatives that also... - Published: 2025-12-31 - Modified: 2026-01-21 - URL: https://elpllc.law/blog/year-in-review-key-business-bankruptcy-insights-from-2025/ As we do every year, we published numerous articles on our blog throughout 2025 that offer important insights for business owners considering reorganization under Chapter 11. If you have questions about hiring a Miami bankruptcy lawyer in 2026, we encourage you to take a look back at these articles—and then we invite you to schedule a free consultation at Edelboim Lieberman. Making an Informed Decision About When (and If) to File for Bankruptcy While there are several benefits to reorganizing a business’s debts under Chapter 11 when warranted, filing for bankruptcy is still a major decision that requires careful consideration of numerous factors. These include both the positive and negative consequences of filing for bankruptcy, as well as the potential consequences of waiting too long to file. If you have questions about whether it makes sense to consider reorganization, we encourage you to read: When Is It Time to Talk to a Business Bankruptcy Attorney? Understanding the Consequences (Both Positive and Negative) of Chapter 11 Bankruptcy What Can Happen if a Struggling Business Doesn’t File for Bankruptcy? Choosing Between the Options Your Business Has Available When considering a Chapter 11 bankruptcy, it is also important to consider the alternatives. If your business’ viability as a going concern is in jeopardy, you need to consider all available options. These include both bankruptcy and non-bankruptcy options for dealing with unmanageable debt. For an overview of the options that are available—including the Subchapter V bankruptcy option that has grown in popularity in recent years, you can read: What Are the Different Types of Business Bankruptcies? Subchapter V: A Closer Look at the “Small Business” Bankruptcy Process A Closer Look at Five Potential Alternatives to Reorganizing Under Chapter 11 Choosing Between a Business Bankruptcy and an Assignment for the Benefit of Creditors (ABC) One potential alternative to a business bankruptcy under Chapter 11 (or Subchapter V) is an assignment for the benefit of creditors, commonly referred to as an “ABC. ” However, while most business owners are aware that this option exists, few have a clear understanding of what an ABC entails. While it is worth considering all of your options if your business is struggling financially, it is important to do so with a clear understanding of what each option truly means for your business. For an overview of some key differences between a Chapter 11 reorganization and an ABC, you can read: Business Bankruptcy vs. Assignment for the Benefit of Creditors (ABC): Key Considerations for Struggling Businesses. Understanding the Chapter 11 Reorganization Process Let’s say you decide to move forward with reorganizing your business’s debts under Chapter 11. What can you expect as you move forward? Knowing what to expect is critical, as it allows you to make informed, strategic decisions during both the pre-filing and post-filing stages. For an introduction to what you can expect if you decide to pursue a business bankruptcy, you can read: The “Five Ws” of Chapter 11 Reorganization Plans. Making Informed Decisions Once You’ve Committed to Filing Once you commit to reorganizing your company’s debts, it is up to you (and your business’s Miami bankruptcy lawyer) to ensure that the process is as efficient and effective as possible. This, too, requires informed and strategic decision-making. For an overview of steps to take, pitfalls to avoid, and strategic considerations to keep in mind, you can read: 7 Tips for Preparing to Avoid Unnecessary Issues During a Business Bankruptcy 7 Pitfalls to Avoid Before, During, and After a Chapter 11 Reorganization Strategic Considerations for Reorganizing Under Chapter 11 Rebuilding Your Business’ Financial Standing Post-Bankruptcy Reorganizing your company’s debts... - Published: 2025-12-24 - Modified: 2026-01-21 - URL: https://elpllc.law/blog/year-in-review-key-contract-litigation-insights-from-2025/ As we do every year, we published numerous articles on our blog throughout 2025 that provide important insights for business owners facing disputes—both internal and external. When facing a dispute that threatens to disrupt your business’s operations (or jeopardize its viability as a going concern), it is critical to ensure you make informed, strategic decisions. With this in mind, in this article, we are taking a look back at some of the key insights our Miami commercial litigation attorneys shared throughout the year. For much of the year, we focused on writing articles that address the unique considerations in various types of commercial contract disputes—from pricing and fee disputes to those involving the need to seek injunctive relief or specific performance. But we also published a couple of articles focused on the practical considerations involved in facing an internal dispute between shareholders. Contract Disputes Involving Pricing and Fees Disputes over pricing and fees are among the most common—and most contentious—disputes in the commercial setting. Whether your company needs to enforce a counterparty’s payment obligations or you need to defend your company’s decision not to pay, you will need to promptly make informed and strategic decisions based on the relevant contract terms and the circumstances at hand. For an overview of common payment-related disputes and key steps to take when facing these disputes, you can read: Contract Disputes Involving Pricing and Fees: When One Party Claims Underpayment. Contract Disputes Involving Service Level Agreements (SLAs) Many companies use service level agreements (SLAs) to establish mutual expectations in vendor relationships. Sometimes SLAs are enforceable and sometimes they aren’t—and, sometimes, it isn’t clear what it means if a vendor fails to meet an SLA. Service level agreements are often vague, and this vagueness can lead to differences of opinion despite the parties’ attempts to establish mutual expectations. For an overview of some key considerations—and some potential means of resolution—when facing a dispute involving SLAs, you can read: Contract Disputes Involving Service Level Agreements (SLAs): Are They Enforceable or Not? Contract Disputes Involving Renewals When a commercial contract is set to expire, a key consideration for both parties is whether to renew. If the contract is silent on renewal, it is generally up to the parties to decide whether to engage in renewal negotiations. But, if the contract is not silent, what it says—and what it doesn’t say—will play a critical role in determining the parties’ respective rights. For an overview of some key considerations involved in resolving disagreements over whether to renew, you can read: Contract Disputes Involving Renewals: What if One Party Refuses to Renew on Reasonable Terms? Contract Disputes Involving Cybersecurity Breaches Cybersecurity threats are an omnipresent concern for all types of businesses. If your business experiences a cybersecurity breach—or if a vendor or customer experiences a cybersecurity breach—the decisions you make in its immediate aftermath can have significant repercussions for your business’s legal rights and risk exposure. For an overview of some of the key legal considerations involved in responding to a cybersecurity incident, you can read: Contract Disputes Involving Cybersecurity Breaches: Key Insights for Business Owners. Contract Disputes Involving Third-Party Claims Along with disputes arising from certain types of cybersecurity breaches, companies can also face a wide range of other third-party claims. These include everything from intellectual property infringement claims to personal injury and wrongful death claims. A commercial contract’s “boilerplate” terms can play a key role in this scenario, including those regarding indemnification and insurance coverage. For an overview of some of the key legal considerations involved in commercial contract disputes involving third-party claims, you can read: Contract Disputes... - Published: 2025-12-17 - Modified: 2026-01-21 - URL: https://elpllc.law/blog/contract-disputes-involving-pricing-and-fees-when-one-party-claims-it-doesnt-have-to-pay/ In a previous article, we discussed key considerations for addressing (and resolving) contract disputes when one party claims underpayment. If it is clear that one party has met its obligation to perform and the other party has failed to meet its obligation to pay, this can potentially be a relatively straightforward scenario. However, these situations can still lead to litigation, and parties seeking to enforce their right to payment will need to work with an experienced Miami breach of contract lawyer to pursue the legal options available to them. When one party claims it doesn’t have to pay, the situation can quickly become much more complicated. Parties to commercial contracts may dispute their payment obligations for various reasons. When facing these types of disputes, a key first step for both parties is to ensure that they have a clear understanding of what their contract says—and what it doesn’t. If a party’s claim that it doesn’t have to pay is supported by the circumstances at hand, then no further action may be required (or warranted). On the other hand, if a party’s claim that it doesn’t have to pay is not supported by the circumstances at hand, then the parties will need to either find a way to come to terms or rely on an arbitrator or judge to render a binding decision. Potential Justifications for Nonpayment Under a Commercial Contract With all of this in mind, let’s look at some potential justifications for nonpayment under a commercial contract. When isn’t a party required to pay? Broadly speaking, there are five main scenarios: 1. Failure to Perform The first scenario is the other party’s failure to perform. If one party’s obligation to pay is contingent upon the other party’s obligation to perform, then nonpayment may be justified until such time as performance is complete. For example, if a contract for the delivery of industrial equipment states that payment isn’t due until installation is complete, efforts to seek payment before installation is complete will be premature. 2. Deficient Performance Deficient performance can also justify nonpayment in some cases. However, this is heavily dependent upon the terms of the parties’ contract. In some cases, parties will stipulate that deficient performance justifies nonpayment (or at least a delay in payment until the deficiency is rectified). In other cases, however, parties may agree that withholding payment is not an appropriate remedy. 3. Incomplete Performance Likewise, incomplete performance can justify nonpayment in some (but not all) cases. For example, let’s say a contractor walks away from a job halfway through. Is the contractor entitled to half payment? The answer depends on the terms of the parties’ agreement. If the contractor is entitled to progress payments, withholding payment entirely may constitute a breach of contract. On the other hand, if the customer protected itself by negotiating a contract that requires payment only upon completion of the contractor’s work (and perhaps only after an independent inspection), then the contractor’s incomplete performance may justify withholding payment in full. Alternatively, the contractor may be entitled to payment only for materials. Once again, the language of the parties’ contract will be key. 4. Contractual Ambiguity But what if the language of the parties’ contract is ambiguous? This happens far more often than it should—and it is a common source of contentious disputes between contracting parties. If a commercial contract is unclear about when payment is due, the parties may have little choice but to negotiate a resolution or present their arguments in arbitration or court. 5. Breach of Contract Along with performance failures, other breaches of contract can also justify nonpayment... - Published: 2025-11-28 - Modified: 2025-12-23 - URL: https://elpllc.law/blog/contract-disputes-involving-pricing-and-fees-when-one-party-claims-underpayment/ Among the various types of disputes businesses can face, pricing and fee disputes are among the most common. If one party claims underpayment and the other party claims that it has paid what it owes or that no payment is due, there is a high likelihood that the parties’ dispute will lead to litigation. In this scenario, avoiding unnecessary costs, liabilities, and risks involves working with an experienced Miami breach of contract lawyer who can help you make informed and strategic decisions. Common Reasons for Contract Disputes Involving Pricing and Fees Contract disputes involving pricing and fees can arise for a variety of different reasons. When facing these disputes, a key first step toward making informed and strategic decisions involves identifying the specific reason why the parties are in disagreement. Some examples of common reasons for these disputes include: Ambiguity Regarding the Amount Owed One common reason for disputes involving pricing and fees is ambiguity regarding the amount owed. If a contract’s language isn’t clear, or if the parties don’t have clear documentation of the amount due, this can leave the parties facing a fundamental disagreement without a clear path forward. Some examples of scenarios in which this can occur include: The contract does not clearly specify how pricing or fees are calculated The contract is ambiguous regarding volume discounts, rebates, or other similar terms The parties do not have adequate documentation to accurately calculate the fees due The latter scenario is common in cases involving franchises, licenses, and other contracts with percentage-based fees. For example, if a franchisee owes a monthly royalty of three percent of gross revenue, both parties will need clear and comprehensive documentation of the franchisee’s gross revenue in order to confirm how much is owed. If the parties’ contract does not clearly define “gross revenue,” or if it arguably excludes certain sources of income, this could lead to a dispute as well. These are just two of numerous possible permutations. Ultimately, if any ambiguity exists regarding either party’s financial obligations, there is a high likelihood that litigation (or an alternative dispute resolution mechanism such as mediation or arbitration) will be necessary. Ambiguity Regarding the Due Date Ambiguity regarding due dates can lead to payment-related disputes as well. In many cases, due dates can have a significant impact on both parties’ cash flow. As a result, if one party is expecting payment when the other isn’t prepared to pay, this could have serious financial ramifications. This type of ambiguity can either result from issues with a contract’s language or from questions regarding whether a party’s payment obligation has been triggered. In either scenario, a dispute can lead to a declaration of default, and if the party expecting payment cannot afford to wait, then immediate legal action may be necessary. Disagreements Over Whether the Party Seeking Payment Has Adequately Performed Oftentimes, disputes regarding one party’s payment obligations will arise out of disputes over whether the other party has adequately performed. Under a construction contract, for example, a contractor may be entitled to a progress payment upon “substantial completion” of a key phase of the build. If the parties disagree over whether the phase has been substantially completed, this can lead to a dispute regarding payment as well. The Delinquent Party’s Inability to Pay Pricing and fee disputes can also arise out of the delinquent party’s inability to pay. If a party isn’t paying because it doesn’t have the financial resources to do so, this is a very different scenario from those discussed above. In this case, the issue isn’t whether payment is owed (or how much is... - Published: 2025-11-21 - Modified: 2025-12-23 - URL: https://elpllc.law/blog/7-pitfalls-to-avoid-before-during-and-after-a-chapter-11-reorganization/ Going through a Chapter 11 reorganization requires careful planning and a detailed understanding of the immediate and long-term financial implications involved. If business owners are not adequately prepared, they will risk making uninformed decisions—and this can lead to consequences ranging from an untenable reorganization plan to a denial of the business’ bankruptcy petition. Learn how business owners can ensure they are making informed decisions from an experienced Miami bankruptcy litigation attorney at Edelboim Lieberman: Avoiding Pitfalls When Navigating a Chapter 11 Business Bankruptcy A key to making informed decisions in a Chapter 11 reorganization is knowing which pitfalls to avoid. There are a lot of potential pitfalls of which business owners need to be aware. By understanding these pitfalls and by taking proactive steps to avoid them, business owners can help ensure that their business’s reorganization will serve its intended purpose long-term. With this in mind, here are seven pitfalls to avoid before, during, and after the Chapter 11 reorganization process: 1. Rushing Into a Chapter 11 Bankruptcy One of the first pitfalls business owners need to avoid is rushing into a Chapter 11 bankruptcy. While it is important not to delay when filing under Chapter 11 is warranted (more on this below), business owners need to ensure that this is the best option under the circumstances. Depending on the circumstances, a variety of alternatives may be available. These include working with the business’s creditors to informally restructure the business’ debts or seek forbearance agreements, among others. If one of these alternatives makes sense, not only could it be cheaper and quicker than going through the Chapter 11 reorganization process, but it could have fewer long-term consequences for the business’s credit and financial risk as well. 2. Waiting Too Long to File Under Chapter 11 While it is important for business owners not to rush into a Chapter 11 bankruptcy, it is equally important for business owners not to wait too long to file under Chapter 11. When pursuing a formal reorganization is warranted, unnecessary delays can lead to unnecessary consequences. For businesses that are facing the imminent risk of default (or that are already in default and facing the imminent risk of collection or repossession), filing under Chapter 11 affords the protection of the automatic stay. The automatic stay prohibits creditors from pursuing collection efforts, with only limited exceptions. When warranted, filing under Chapter 11 has other immediate benefits as well, and the sooner a business starts the process, the sooner it can finalize the process and move on. 3. Failing to Make All Requisite Filings and Disclosures Once the decision is made to file for reorganization, the focus should be on ensuring that the business meets all substantive and procedural requirements for obtaining relief under Chapter 11. This includes making all requisite filings and disclosures. Businesses must include multiple pleadings and forms with their Chapter 11 bankruptcy petitions and adequately disclose their assets, liabilities, and creditors. Failing to make all requisite filings and disclosures can lead to unnecessary delays, costs, and challenges, and, in some cases, jeopardize the business’ Chapter 11 filing. As a result, an informed approach is key, and this is one of several reasons why it is important to work closely with an experienced Miami bankruptcy litigation attorney from the outset of the process. 4. Failing to Anticipate Issues During the Process Failing to anticipate issues during the process can lead to unnecessary delays, costs, and challenges as well. Creditors can potentially challenge businesses’ Chapter 11 filings on various grounds, and when a creditor files a challenge, responding effectively is critical for keeping the process... - Published: 2025-11-14 - Modified: 2025-12-23 - URL: https://elpllc.law/blog/subchapter-v-a-closer-look-at-the-small-business-bankruptcy-process/ For many companies that are struggling to stay afloat, pursuing a Subchapter V “small business” bankruptcy can provide a viable path toward regaining financial stability. Pursuing a Subchapter V bankruptcy involves reorganizing a company’s debts, similar to pursuing a traditional business bankruptcy under Chapter 11. However, the costs are significantly lower, and there are significantly fewer steps involved. Is a Subchapter V small business bankruptcy right for your company? Find out from an experienced Miami bankruptcy lawyer at Edelboim Lieberman: What Business Owners Need to Know About Subchapter V While Subchapter V exists under Chapter 11—and while a Subchapter V bankruptcy is still technically a Chapter 11 filing—there are several major differences between small business bankruptcies under Subchapter V and traditional Chapter 11 reorganizations. These differences make pursuing reorganization under Subchapter V viable when pursuing a traditional Chapter 11 reorganization would be cost-prohibitive. Here is a brief overview of the basics of a Subchapter V small business bankruptcy: “Small Business” – Businesses are generally eligible to file under Subchapter V if they have “aggregate noncontingent liquidated secured and unsecured debts” of no greater than $3,424,000 as of 2025. This is the primary criterion for qualifying as a “small business” under Chapter 11. “Projected Disposable Income” – Subchapter V reorganization plans focus on using the debtor’s “projected disposable income” to pay down its outstanding liabilities over a three- to five-year period. Projected disposable income is income which is not “reasonably necessary” for “the continuation, preservation or operation of the business. ” Bankruptcy Trustee – In a traditional Chapter 11 case, the bankruptcy trustee can take possession of the debtor’s assets and investigate the debtor for possible mismanagement and other issues. In a Subchapter V case, the debtor remains in possession of its assets, and the trustee’s role is specifically to “facilitate the development of a consensual plan of reorganization. ” Proposed Reorganization Plan – In Subchapter V cases, only the debtor is eligible to file a proposed reorganization plan. Creditors cannot file competing plans, and there is no unsecured creditors’ committee in a Subchapter V small business bankruptcy (unless the court orders otherwise). In traditional Chapter 11 cases, competing plans and creditors’ committees can both add costs, complications, and delays to the process. Creditor Consent Not Required – Not only are creditors ineligible to file competing plans in a Subchapter V case, but creditor consent is not required for approval of the debtor’s proposed reorganization plan. When a business files under Subchapter V, the bankruptcy court must approve the business’s plan as long as it is “fair and equitable. ” Timeline – Due to the procedural differences between Subchapter V small business bankruptcies and traditional Chapter 11 business bankruptcies, the timeline of a Subchapter V case is significantly shorter. The median duration of a successful traditional Chapter 11 case is 10. 4 months, while the median duration of a successful Subchapter V case is 6. 6 months. Not only does this reduce the costs involved in the process, but it also allows eligible businesses to begin paying under their reorganization plans sooner as well. Equity Retention – The procedural differences between Subchapter V small business bankruptcies and traditional Chapter 11 business bankruptcies also mean that the business’s shareholders can retain their equity stakes without making additional capital contributions. This is a major benefit that makes Subchapter V filing significantly more attractive to many owners. Subchapter V is designed to help facilitate the reorganization process for eligible small businesses, and the data suggest that it has largely served its intended purpose over its relatively short lifespan (Congress enacted Subchapter V in 2019).... - Published: 2025-10-31 - Modified: 2025-12-23 - URL: https://elpllc.law/blog/contract-disputes-involving-efforts-to-force-compliance-when-specific-performance-is-and-isnt-a-remedy/ If your company is facing a contract dispute involving another party’s failure to uphold its end of the bargain, you will need to decide what type of remedy you want to seek under the circumstances at hand. In some cases, seeking to force compliance—or to compel “specific performance”—might seem like the most desirable option. However, there are a variety of legal and practical considerations involved in seeking specific performance that do not apply to seeking other types of remedies. Learn more from an experienced Miami breach of contract lawyer at Edelboim Lieberman: 3 Types of Potential Remedies in Contract Disputes Broadly, the types of remedies that are available in breach of contract cases fall into three categories. While not all remedies will be available in all cases, the types of remedies that are generally available include: Monetary Damages – Monetary damages compensate contracting parties for their losses resulting from a counterparty’s breach or default. They can be based on a plaintiff’s actual and projected losses, or, in some cases, they can be based on a stipulated liquidated damages amount. Injunctive Relief – Injunctive relief prohibits a party from engaging in certain specified acts. For example, if a licensee is using a company’s software in violation of the terms of its license agreement, a court may grant injunctive relief to prohibit (or “enjoin”) the unauthorized use. Specific Performance – An award of specific performance compels a party to take action as specified in the award. For example, if a company has a contractual obligation to deliver a highly specialized product and is refusing to do so, an award of specific performance may be appropriate in this scenario. Of these three potential remedies, specific performance is the least common by fair. While courts are generally willing to award damages when warranted and enjoin defendants from engaging in unlawful or prohibited activities when necessary, they are typically less willing to force defendants to take action against their will. Some of the reasons why courts are often hesitant to award specific performance in commercial contract disputes include: Performance is Impossible or Impracticable – While parties may simply refuse to perform in some cases, disputes often arise because performance has become impossible or impracticable. If a defendant cannot feasibly comply with the terms of a contract, then an award of specific performance is only likely to lead to further litigation. Good Faith Performance is Unlikely – Even if performance is not impossible or impractical, good faith performance may still be unlikely. If a defendant is capable of performing but has been unwilling to do so to the point that its refusal has resulted in litigation, this can also be a scenario in which an award of specific performance is unlikely to provide a final resolution. Damages Are a Sufficient Remedy – Regardless of whether performance is possible, damages may be a sufficient remedy. Not only will damages be sufficient in many cases, but damages awards are also generally easier to enforce than awards of specific performance. This increased likelihood of finality means that damages will be a preferred remedy in many cases. When Is Specific Performance an Appropriate Remedy? With this in mind, when is specific performance an appropriate remedy? For the reasons we just discussed, courts tend to award specific performance only when there are no other options available (i. e. , when damages are insufficient to make a plaintiff whole). Examples of scenarios in which this may be the case include: The parties’ contract involves the sale of a unique piece of real estate or another unique asset; or, The parties’ contract involves... - Published: 2025-10-24 - Modified: 2025-11-09 - URL: https://elpllc.law/blog/are-companies-required-to-disclose-chapter-11-bankruptcies/ While reorganizing a company’s debts under Chapter 11 can have several benefits in the right circumstances, one of the drawbacks of filing is that Chapter 11 proceedings are generally public record. But, even with this being the case, if filing under Chapter 11 is necessary to sustain the company’s operations, this can be a relatively small price to pay. So, does it make sense for your company to file under Chapter 11? Learn about some key considerations from an experienced Miami business bankruptcy attorney: Publicity and Disclosure Considerations When Contemplating a Chapter 11 Bankruptcy As a general rule, Chapter 11 business bankruptcy filings are public record. While there are procedures for seeking to seal certain records in appropriate circumstances, the sealing of an entire Chapter 11 bankruptcy case is extremely rare. As a result, in most cases, companies should expect that their bankruptcy filings will be available to the public. However, this doesn’t necessarily mean that the public will learn about a company’s efforts to reorganize its debts. While some Chapter 11 filings make headlines, most Chapter 11 filings remain largely undisclosed. The creditors involved will obviously be aware of the filing, but otherwise, additional publicity is the exception rather than the rule. With that said, there are a handful of circumstances in particular where companies’ Chapter 11 filings may come to light. For example, companies may be required to disclose their Chapter 11 bankruptcies if: The Company is Publicly Traded – Publicly traded companies will generally be required to disclose Chapter 11 filings as part of their federal disclosure obligations. A Chapter 11 filing will generally be material to both current and prospective investors, and this means that disclosure will generally be required. The Company Has Other Affirmative Disclosure Obligations – Certain companies may have other affirmative disclosure obligations as well. For example, franchisors must disclose recent bankruptcy filings in Item 4 of their Franchise Disclosure Document (FDD). A Vendor, Creditor or Customer Asks – If a vendor, creditor or customer asks about a company’s bankruptcy history, providing inaccurate or misleading information may constitute fraud. Depending on the circumstances, this could expose the company to liability for damages, contract rescission or other remedies. An Existing Contract Requires Disclosure – In some cases, companies may have obligations to disclose bankruptcy filings under existing contracts as well. If a commercial contract includes a representation that the company will disclose any bankruptcy filings, then failure to do so could constitute a breach or default. Prospective creditors may also independently research a company’s bankruptcy history. Since bankruptcy filings are generally public record, creditors can search court databases for information about prospective debtors’ filings. Should Your Company Consider an Alternative to a Chapter 11 Bankruptcy? If publicity or disclosure is a concern, it will be worth considering the alternatives that are available (companies that are considering a Chapter 11 filing should generally consider potential alternatives as well). The following are examples of potential alternatives to a Chapter 11 filing that will not result in the creation of a public record: Forbearance Agreements and Informal Debt Restructuring – In some cases, companies may be able to enter into forbearance agreements or informally restructure their debts outside of the Chapter 11 bankruptcy process. When taking this approach, companies can choose the specific debts they want to target—and they can do so with a systematic and strategic approach. Renegotiating with Vendors, Creditors or Customers – Renegotiating with individual vendors, creditors or customers may be an option as well. If a company can reduce its monthly payments, speed up customer payments or take other steps to improve its... - Published: 2025-10-17 - Modified: 2025-11-09 - URL: https://elpllc.law/blog/how-do-companies-keep-operating-after-bankruptcy/ Filing for bankruptcy doesn’t necessarily mean going out of business. Not only can businesses survive the bankruptcy process, but if they take an informed and strategic approach to the process, they can come out financially stronger on the other side. Learn more from an experienced Chapter 11 bankruptcy lawyer at Edelboim Lieberman: What Business Owners Need to Know About the “Reorganization” Process Under Chapter 11 The Chapter 11 bankruptcy process is designed to help businesses regain their financial stability. When filing under Chapter 11, the goal of the process is to reorganize the company’s debts so that it can continue operating as a going concern. This contrasts with a business bankruptcy under Chapter 7, where the focus is on liquidating the business’s assets and winding up its affairs. This “reorganization” process is at the heart of Chapter 11. Congress developed Chapter 11 with the specific purpose of giving struggling businesses a second chance. When conducted properly, a Chapter 11 bankruptcy is fair for all parties involved, and it gives the business the opportunity to manage its finances without the risk of facing collection and with a renewed focus on profitability. Since enacting Chapter 11, Congress has enacted several amendments that are further designed to help facilitate efficient and orderly reorganizations. One of the most significant of these amendments is the addition of Subchapter V. Under Subchapter V, “small” businesses (defined as those with not more than $7,500,000 in qualifying debts) can leverage streamlined procedures that not only speed up the reorganization process but also reduce the costs involved. What does it mean to “reorganize” under Chapter 11? Within the context of a Chapter 11 bankruptcy, “reorganization” refers specifically to restructuring the business’s outstanding debt obligations. In a Subchapter V bankruptcy, the business (referred to as the “debtor”) has the exclusive ability to propose a reorganization plan. In a traditional Chapter 11 bankruptcy, creditors can file competing reorganization plans—and working to find a resolution that is reasonably satisfactory to all parties involved is among the more complex and time-consuming aspects of the process. A typical reorganization plan will have the business paying down its debts over a three- to five-year period. Assuming the business meets its reorganized payment obligations during this time, at the end of the plan, it will be discharged from further liability for the debts covered under the plan. Acting Promptly Can Be Important for Businesses Considering a Chapter 11 Filing For businesses that are struggling financially and considering a bankruptcy filing, acting promptly can be important in some cases. For example, if one or more of the business’s creditors are pursuing collection (or have signaled that collection is imminent), then initiating the Chapter 11 process promptly could be critical for avoiding unnecessary costs and complications. Another way the Chapter 11 process helps companies stay in business is by invoking an automatic stay on collection activities. Once a business files under Chapter 11, its creditors are generally precluded from seeking to collect on their debts while the business’s (or “debtor’s”) Chapter 11 proceeding is ongoing. By filing under Chapter 11 before a default leads to collection—or before informal collection efforts transition to litigation—debtors can remain in better standing with their creditors and avoid unnecessary defense costs. There are other reasons for struggling businesses to consider acting promptly as well. For example: Pre-filing mistakes, such as conducting transactions that amount to preferential transfers, can also add unnecessary costs and complications to the Chapter 11 process. Avoiding defaults can protect businesses’ credit ratings. While filing under Chapter 11 will impact a business’s credit rating, pre-bankruptcy default proceedings can compound the... - Published: 2025-09-30 - Modified: 2025-10-19 - URL: https://elpllc.law/blog/what-can-happen-if-a-struggling-business-doesnt-file-for-bankruptcy/ We talk a lot on our blog about the benefits of filing for bankruptcy and the importance of making informed decisions before it’s too late. While filing for bankruptcy isn’t the right approach in all cases, when it is the right approach, acting promptly can be critical for protecting businesses’ interests and maximizing the opportunities they have available. Keep reading to learn about what can happen when a struggling business doesn’t file for bankruptcy from an experienced Miami bankruptcy lawyer at Edelboim Lieberman: Understanding What Can Happen When a Business Doesn’t File for Bankruptcy If a business’s owners choose not to file for bankruptcy and the business falls behind on its debt obligations as a result, this can potentially trigger a series of undesirable events. In a typical scenario, falling behind on a business’s debt obligations can lead to: 1. Default When a business falls behind on one of its debt obligations, the creditor can declare a default in accordance with the terms of the parties’ contract (i. e. , a loan, lease, or supplier agreement). This can give the creditor a variety of rights depending on the circumstances involved. In some cases, defaults can trigger immediate liability for the full amount due. In others, they can justify both termination of the contract and immediate efforts to collect the outstanding balance. If multiple creditors declare a business in default, its financial circumstances can quickly go from bad to worse. Not only can the business face substantial liability tied to its contractual obligations, but it can also find itself forced to defend against creditors’ claims in litigation. Failure to defend against creditors’ claims in litigation can result in the court awarding a default judgment, which can provide creditors with additional tools to pursue collection. 2. Collection Action Even without a default judgment, creditors can often pursue collection through a variety of means. For secured debts, this generally includes seizing the property securing the debt and then selling it in order to satisfy the amount due (i. e. , a foreclosure). If selling the property does not satisfy the full amount due, the creditor can pursue other means of collection as well. Along with pursuing foreclosures and other similar collection actions, creditors can generally pursue liens, attachments, charging orders, and a variety of other options to enforce their right to payment. All of these can severely complicate a business’s financial circumstances while also leading to additional enforcement-related expenses. 3. Credit Consequences When creditors initiate collection actions, this can also have severe consequences for a business’ credit standing. If a business is unable to secure additional financing, this can also contribute to a continuing downward financial spiral. The worse a business’s credit rating becomes, the harder it will be for the business to both secure much-needed financing in the short-term and restore its credit rating in the future. 4. Enforcement of Personal Guarantees In many cases, small business owners will provide personal guarantees for their businesses’ debts. If a business owner has personally guaranteed the business’s debts, this means that the business’s creditors can pursue collection from the owner as well. This is true even if the business is a limited liability entity (i. e. , a corporation or LLC). A personal guarantee is a separate, stand-alone contract that establishes direct personal liability in the event of default. The risk of facing liability under a personal guarantee is often—and understandably—a key consideration for business owners whose businesses are at risk of defaulting on loans, leases, and other contracts. Facing liability under a personal guarantee can have serious financial consequences, and, depending on the... - Published: 2025-09-23 - Modified: 2025-10-19 - URL: https://elpllc.law/blog/business-bankruptcy-vs-assignment-for-the-benefit-of-creditors-abc-key-considerations-for-struggling-businesses/ While struggling businesses have a variety of options for dealing with financial distress, two of the primary options in this scenario are: (i) pursuing a business bankruptcy under Chapter 7 or Chapter 11; and (ii) pursuing an assignment for the benefit of creditors (ABC). Each of these options presents its own unique set of considerations, and business owners must make an informed and strategic decision based on the specific circumstances at hand. Learn more from an experienced Miami business bankruptcy attorney at Edelboim Lieberman: Key Considerations for When to Pursue a Business Bankruptcy (Chapter 7 or Chapter 11) While business bankruptcies often get lumped together, filing under Chapter 7 and filing under Chapter 11 are two very different approaches to dealing with a company’s financial distress. As a result, when considering the options that are on the table, it is important to consider filing under Chapter 7 and filing under Chapter 11 separately. Chapter 7: Liquidating the Business’ Assets and Winding Up Its Affairs Filing for bankruptcy under Chapter 7 involves using the business’s remaining assets to pay its creditors (to the extent possible) in their order of priority. As such, filing under Chapter 7 also generally means winding up the business’s affairs. During the Chapter 7 bankruptcy process, the bankruptcy trustee will sell the company’s assets, and then the trustee will distribute the sale proceeds in accordance with the relevant provisions of the Bankruptcy Code. Crucially, if the business’s owners have personally guaranteed its debts (or if the business’ owners can be held liable for the business’s debts on other grounds), then they could be at risk of facing liability if the business’s assets are insufficient to satisfy all creditor claims. This is a factor that requires careful consideration when deciding how best to proceed under the circumstances at hand. Chapter 11: Reorganizing the Business’ Debts So It Can Continue Operating as a Going Concern In contrast to filing under Chapter 7, filing for bankruptcy under Chapter 11 involves reorganizing the business’s debts so it can continue operating as a going concern. The business remains in business, and its owners are not at immediate risk of facing personal liability. Reorganizing under Chapter 11 is a good option for struggling businesses that need time—and some financial flexibility—to get back on solid ground. Provided that a business can meet its obligations under its reorganization plan, it can continue operating without the risk of facing default and collection action. When necessary, struggling businesses can seek debtor-in-possession (DIP) financing through the Chapter 11 process as well, providing access to the additional capital needed to invest in the business’s future. Importantly, many small (and even not-so-small) businesses are eligible to file for reorganization under Subchapter V of Chapter 11. While traditional Chapter 11 proceedings can be prohibitively expensive for many smaller companies, Subchapter V establishes streamlined procedures for “small business bankruptcies” that substantially reduce the costs involved. As a result, if you think that reorganizing your business’s debts might be the best path forward, you will want to talk to a Miami business bankruptcy attorney to find out whether a Subchapter V filing is a viable option. Key Considerations for When to Pursue an Assignment for the Benefit of Creditors (ABC) Pursuing an assignment for the benefit of creditors (ABC) is an alternative to filing under Chapter 7. For businesses that are prepared to wind up their affairs, pursuing an ABC can offer several advantages compared to liquidating under Chapter 7. These include (but are not limited to): Additional Privacy – While ABCs are subject to court supervision, they offer greater privacy than Chapter... - Published: 2025-09-16 - Modified: 2025-10-19 - URL: https://elpllc.law/blog/contract-disputes-involving-service-level-agreements-slas-are-they-enforceable-or-not/ Service level agreements (SLAs) are common terms in vendor contracts. While they are most commonly used in the information technology (IT) sector, corporate customers can—and frequently do—use SLAs to help protect their interests when contracting with all types of service providers. But, are SLAs enforceable? Find out from an experienced Miami commercial litigation attorney at Edelboim Lieberman. Are Service Level Agreements (SLAs) in Vendor Contracts Enforceable? It Depends. Whether service level agreements are enforceable depends on the terms of the parties’ contract. Oftentimes, this will be a central issue (among many others) during the negotiation process. Corporate customers will typically seek to make SLAs enforceable, while vendors will prefer for SLAs to be more along the lines of non-binding commitments. There are arguments on both sides. For customers, being able to enforce SLAs helps ensure that vendors will uphold their end of the bargain. For vendors, facing default and termination based on failure to meet certain standards—while still meeting their fundamental obligations under the contract—can be unreasonably risky. As a result, in many cases, the parties will compromise. They might agree that the vendor will make good-faith efforts to comply with a comprehensive list of SLAs, and that substantial or repeated failures will justify a claim for breach. Alternatively, they might agree that the vendor will only be bound by a small set of clearly defined SLAs, and that any violation will constitute grounds for default or specified remedies. These are just two examples of numerous possibilities. Ideally, the parties’ contract will clearly state whether the SLAs are enforceable—and, if they are, it will also state what can happen in the event of noncompliance. If the enforceability of SLAs is not clear from the plain language of the contract, then it will be necessary to try to discern the parties’ mutual intent at the time of contracting. Of course, if the parties are in disagreement regarding the enforceability of SLAs, they will probably have opposing views on what was intended, and this will lead to contentious disputes in many cases. Dispute Resolution Involving Enforceable Service Level Agreements (SLAs) Let’s say the SLAs in a commercial contract are enforceable. What does the customer need to do to enforce them? What, if anything, can the vendor do to defend against default and termination? For both parties, a key first step in this scenario is to confirm whether the vendor has in fact breached one or more SLAs. Oftentimes, SLAs are not as clear as they should be. This can lead to disputes involving intent and interpretation as well. If the vendor’s obligations under an SLA are not clear, then it will be difficult for the customer to successfully argue that a breach has occurred. Disputes can also arise when compliance with an enforceable SLA is not quantifiable. For example, if an SLA requires the vendor to use its “best efforts” to achieve a particular outcome for the customer, proving noncompliance can be challenging (but is not necessarily impossible). Similarly, if neither party has the means to measure compliance with an SLA (i. e. , if neither party has the technological capabilities to accurately calculate downtime), this can also make enforcement difficult. In any case, when facing disputes related to enforceable SLAs, commercial parties will need to comply with the dispute resolution provisions in their contract. Commercial contracts frequently require the parties to use alternative dispute resolution (ADR) mechanisms instead of going to court, although exceptions may apply in some cases. Provisions regarding remedies, time restrictions, and liability for attorneys’ fees will require careful consideration as well. Additionally, many contracts that include enforceable... - Published: 2025-08-29 - Modified: 2025-10-13 - URL: https://elpllc.law/blog/contract-disputes-involving-renewals-what-if-one-party-refuses-to-renew-on-reasonable-terms/ Leases, licenses, franchise agreements, service agreements, and other commercial contracts frequently include provisions concerning renewal. In many cases, it will be in both parties’ best interests to expressly contemplate the possibility of renewal, as this can provide confidence for the future and help facilitate the growth of a long-term relationship. With that said, renewal clauses can give rise to disputes as well—particularly when only one party wishes to renew or the parties are in disagreement about what constitutes a fair deal going forward. When facing disputes regarding renewal, it is important for both parties to work quickly to make informed decisions focused on the future. Once the renewal date passes, things can get much more complicated. With this in mind, if your company is facing a renewal dispute, what do you need to know? Keep reading for some important insights from an experienced Miami breach of contract lawyer. 5 Key Questions in Commercial Contract Disputes Involving Renewals Renewal disputes can present a variety of different issues depending on the relevant contract language and the specific circumstances at hand. Here are five key questions for making informed and strategic decisions when facing a commercial contract dispute involving a refusal to renew: 1. Does the Contract Include a True “Right” or “Option” to Renew? Assessing the parties’ respective rights in a commercial contract dispute involving a refusal to renew starts with examining the renewal language in the contract. Renewal clauses vary widely—from clauses that provide an explicit “right” or “option” to renew to clauses that establish various renewal conditions and provide broad discretion to one or both parties. If a contract provides an unconditional right or option to renew, then interference with a party’s exercise of this right or option may provide grounds for a breach of contract claim. With that said, other considerations could still come into play, and it will be necessary to conduct a thorough legal analysis focused on the totality of the circumstances at hand. What if the contract doesn’t address renewal at all? This is often among the more straightforward scenarios. If a commercial contract is silent regarding renewal, then, generally speaking, neither party has an obligation to renew. As a result, if one party is ready to let the relationship end, it will generally be free to do so. 2. What Are the Conditions for Renewal? If a commercial contract includes a renewal provision that contemplates the possibility of renewal subject to certain conditions, then carefully reviewing these conditions will be a key step in both parties’ legal analysis of their renewal dispute. While renewal conditions can take many different forms, some more common examples include: Staying in compliance throughout the prior contract term Providing notice of intent to renew by a stipulated deadline Paying a renewal fee (i. e. , in the case of a license or franchise agreement) Meeting the other party’s (i. e. , a licensor’s or franchisor’s) then-current standards for approving new contracts Either remaining bound by the terms of the parties’ existing agreement or signing a new contract that is acceptable to both parties If a party that is seeking to renew fails to meet any of the conditions for renewal, this can justify a decision not to renew. However, the implied covenant of good faith and fair dealing could potentially come into play—and if the party that doesn’t wish to renew interferes with or improperly denies satisfaction of the contract’s renewal conditions, a dispute may be warranted. 3. How Much Discretion Does the Contract Provide to One or Both Parties (if Any)? Discretion is a common issue in renewal disputes... - Published: 2025-08-22 - Modified: 2025-10-13 - URL: https://elpllc.law/blog/what-if-your-companys-chapter-11-reorganization-plan-isnt-working-out/ When companies pursue reorganization under Chapter 11, they typically do so with optimism for the future. The purpose of reorganizing under Chapter 11 (as opposed to liquidating under Chapter 7) is to keep the company afloat while it pursues a path toward profitability. But, even with a strong plan and the best of intentions, reorganizing a company’s debts isn’t always enough. If your company’s reorganization plan isn’t working out, what do you need to know? Find out from an experienced Miami Chapter 11 bankruptcy lawyer at Edelboim Lieberman: Dealing with Financial Strain After a Chapter 11 Reorganization If your company is dealing with financial strain after a Chapter 11 reorganization, what options do you have available? The short answer, generally speaking, is that you have the same options you had previously. Reorganizing a company’s debts under Chapter 11 does not take any options off of the table—and, if your company’s financial struggles are continuing with its reorganization plan in place, you will want to perform the same analysis that you performed previously when you made the decision to file under Chapter 11. This means that you will want to consider options such as: Internal Financial or Organizational Restructuring – In many cases, companies can improve their cash flow through internal financial or organizational restructuring. Liquidating company assets that are no longer needed may be an option for paying off creditors and reducing the company’s debt load as well. While “internal restructuring” is often viewed as a euphemism for conducting layoffs, this is not necessarily the only option that is available. Streamlining or overhauling a company’s operations can also lead to reductions in overhead in other areas, and they can potentially lead to increases in revenue as well. Informal Debt Restructuring – Informal debt restructuring involves working with individual creditors (or groups of creditors) to reduce a company’s ongoing financial obligations without going through the formal Chapter 11 reorganization process. In many cases, when faced with the choice of informally restructuring a company’s obligations or going through the Chapter 11 bankruptcy process, creditors will prefer the former option under the circumstances at hand. There are a variety of ways to approach informal debt restructuring, and an experienced Miami Chapter 11 bankruptcy lawyer should be able to assist with evaluating each of these options. Entering Into a Forbearance Agreement (or Multiple Forbearance Agreements) – Forbearance agreements provide companies with financial breathing room without the risk of being declared in default. A well-drafted forbearance agreement will clearly specify the protections afforded to the debtor while also clearly specifying the creditor’s remedies in the event of debtor non-compliance. When entering into forbearance agreements, companies must be careful to ensure that they are not taking on additional and undue risks for the future, and this makes it important to work closely with an experienced lawyer throughout the drafting and negotiation process. Renegotiating Contracts with Outstanding or Ongoing Liabilities – Another option that companies can consider in lieu of (or in addition to) negotiating forbearance agreements is renegotiating contracts with outstanding or ongoing liabilities. This is a common tactic for reducing companies’ financial obligations under leases, vendor agreements, and other commercial contracts. With that said, lessors, vendors, and other commercial parties are not required to negotiate, so a strategic approach that offers benefits for both sides is essential. Reorganizing Under Chapter 11 (a “Chapter 22” Bankruptcy) – There is nothing in the U. S. Bankruptcy Code that prevents companies from filing under Chapter 11 twice. In fact, this is common enough that it has its own term: a “Chapter 22” bankruptcy filing. If your company’s current... - Published: 2025-08-15 - Modified: 2025-10-13 - URL: https://elpllc.law/blog/responding-to-allegations-of-bankruptcy-fraud-or-abuse/ Last month, we published an article discussing common allegations of bankruptcy fraud and how to avoid these allegations when going through the Chapter 11 reorganization process. This month, we’re shifting focus to later in the process: What if it is too late to avoid allegations of bankruptcy fraud or abuse? An experienced Miami bankruptcy lawyer at Edelboim Liberman explains: Recap: Common Allegations of Bankruptcy Fraud and Abuse in Chapter 11 Cases Before we discuss how to respond to allegations of bankruptcy fraud or abuse in a Chapter 11 case, we should first recap the various forms these allegations can take. As we discussed last month, common fraud and abuse allegations in Chapter 11 cases include: Concealing assets from the bankruptcy court Concealing revenue from the bankruptcy court Fraudulent conveyances and preferential transfers Omitting creditors or failing to provide notice to creditors Misrepresenting future business prospects or investments All of these allegations can present substantial risks for companies that are pursuing reorganization under Chapter 11. Depending on the nature, scope, and veracity of the allegations at issue, facing allegations of bankruptcy fraud or abuse can potentially trigger a variety of sanctions, and, in some cases, it can lead to denial of relief through the bankruptcy process. How Companies Can (and Should) Respond to Fraud and Abuse Allegations in Chapter 11 Bankruptcy Cases With this in mind, how can (and should) companies respond to fraud and abuse allegations in Chapter 11 bankruptcy cases? Here are some key practical, strategic, and legal considerations: Investigating the Veracity of the Allegations at Issue When facing allegations of bankruptcy fraud or abuse, informed decision-making is essential. Making informed decisions starts with assessing the veracity of the allegations at issue. Thus, if a secured creditor, the bankruptcy trustee or another interested party alleges fraud or abuse during the Chapter 11 bankruptcy process, it will be important to quickly investigate the allegations to determine what defenses the company has available. Are the allegations substantiated? Are they misguided? Or, does the representation, omission or transaction at issue fall into a grey area where there is not a clear answer to these questions? All three scenarios are possible, and understanding which scenario your company is facing will be critical for executing an informed and strategic defense. Gaining this understanding will require a careful review of all pertinent internal records, court filings, and any other documentation that is available. Gathering and Preserving Relevant Documentation In any scenario, when facing allegations of fraud or abuse, it is important to gather and preserve all relevant documentation. Not only is this important for evaluating the allegations and identifying available defenses, but it is also important for avoiding allegations of spoliation or intentional destruction. These allegations, if proven, can lead to sanctions in Chapter 11 bankruptcy cases and ancillary court proceedings as well. For many companies, preserving relevant documentation will involve not only avoiding manual deletion and destruction but also pausing automated deletion and destruction protocols. Even if the loss of a relevant document is inadvertent or the result of activities in the normal course of business, the loss can still lead to sanctions. Understanding the Potential Implications of the Allegations at Issue After investigating the veracity of the allegations at issue and ensuring the preservation of all relevant documents, the next step is to assess the allegations’ potential implications. If proven, what would the allegations mean for the company’s Chapter 11 bankruptcy case? Are the allegations severe enough that they could potentially have legal implications outside of the bankruptcy court as well? These are extremely important questions, and the answers should inform the company’s... - Published: 2025-07-31 - Modified: 2025-08-12 - URL: https://elpllc.law/blog/contract-disputes-involving-imminent-or-ongoing-harm-seeking-preliminary-injunctive-relief/ While complex contract disputes can take months, or even years, to resolve, sometimes companies don’t have time to wait. If your company is facing imminent or ongoing harm, obtaining relief immediately could be critical for protecting your company’s interests now and in the future. Depending on the circumstances, this may involve hiring a Miami breach of contract lawyer to seek a preliminary injunction. A preliminary injunction is a court order that, generally speaking, is intended to preserve the status quo. It doesn’t resolve the parties’ dispute, but rather seeks to ensure that neither party will be disadvantaged by the time it takes to navigate the dispute resolution process. Seeking preliminary injunctive relief can be advisable (and necessary) in various circumstances—and, when it is necessary, it is imperative that companies act quickly to seek the relief they need before it’s too late. When Companies Can (and Generally Should) Seek Preliminary Injunctions in Contract Disputes Companies that are facing contract disputes can seek preliminary injunctions to protect various interests in a wide range of circumstances. Generally speaking, it is possible to seek a preliminary injunction to prevent both imminent (or threatened) and ongoing harm—although, in the case of threatened harm, timing can become a key consideration. If a potential dispute isn’t “ripe” for consideration, the court won’t be able to render a decision. At the same time, however, waiting too long to seek relief can lead to harm that could—and arguably should—have been prevented. One of the key aspects of preliminary injunctive relief is that it is available when monetary damages are unlikely to be a sufficient remedy. If awarding damages through litigation or alternative dispute resolution (ADR) would be enough to make the aggrieved party “whole,” then an award of preliminary injunctive relief may not be warranted. With this in mind, some examples of issues that may warrant a request for preliminary injunctive relief include: Violation of a confidentiality clause or non-disclosure agreement (NDA) Violation of a non-competition or non-solicitation clause Unauthorized use or disclosure of trade secrets Unauthorized use of trademarks or corporate branding Substandard performance or substation of inferior materials Again, these are just examples—and these won’t necessarily provide grounds to seek preliminary injunctive relief in all cases. As a general rule, company owners and executives should err on the side of caution, and if you have questions about seeking a preliminary injunction, you should consult with a Miami breach of contract lawyer promptly. Can You Seek a Preliminary Injunction if Your Contract Includes a Mandatory ADR Clause? Many commercial contracts include mandatory ADR clauses that require the parties to submit any disputes to mediation or arbitration. If your company’s contract has a mandatory ADR clause, can you still seek preliminary injunctive relief in court? The short answer is, “It depends. ” Oftentimes, mandatory ADR clauses will include exceptions for circumstances in which preliminary injunctive relief is necessary. Even when this isn’t the case, courts may still have the authority to grant preliminary injunctive relief “in aid of” pursuing permanent remedies through ADR. Here too, consulting with an experienced Miami breach of contract lawyer promptly is a key first step toward making informed and strategic decisions. How Do You Seek a Preliminary Injunction When Necessary? As alluded to above, seeking a preliminary injunction in connection with a commercial contract dispute involves going to court. Companies seeking preliminary injunctive relief must engage legal counsel to prepare and submit the necessary filings on their behalf. Along with satisfying the procedural and technical requirements for seeking a preliminary injunction, companies’ filings must make a substantive case for why preliminary relief is warranted.... - Published: 2025-07-24 - Modified: 2026-10-23 - URL: https://elpllc.law/blog/the-five-ws-of-chapter-11-reorganization-plans/ While some business owners and executives are well-versed in the intricacies of the Chapter 11 bankruptcy process, for those who haven’t been through the process before, learning what to expect is the first step. Unlike Chapter 7 bankruptcy proceedings (which involve liquidating a business’s assets), Chapter 11 proceedings involve restructuring the business’s debts so that it remains viable as a going concern. Working with an experienced Miami Chapter 11 bankruptcy lawyer is essential, as there are numerous critical decisions that need to be made at each step along the way. Restructuring a business’s debts under Chapter 11 involves developing a “reorganization plan. ” A reorganization plan specifies how the business will pay its debts going forward and will generally be structured to bring the business current on its liabilities within three to five years. But, there are numerous intricacies and permutations, and with an informed and proactive approach, businesses can structure their reorganization plans to ensure that they have the best possible chance of making their payments and resolving their outstanding debts in the future. What Business Owners Need to Know About Reorganizing Their Companies’ Debts Under Chapter 11 While we routinely discuss the more intricate aspects of business bankruptcies on our blog, this week we’re going back to the basics. For the uninitiated, here are the “five Ws” of developing a reorganization plan under Chapter 11: Who? A reorganization plan is essentially a court-approved agreement for how a business (referred to as the “debtor”) will satisfy its outstanding liabilities to its creditors going forward. In a traditional Chapter 11 case, the debtor and its creditors (or a creditors’ committee) will negotiate the terms of the debtor’s reorganization plan before submitting it for the court’s approval. If they are unable to agree on the terms of the debtor’s reorganization plan, then they will need to pursue litigation or alternative dispute resolution (ADR) in order to move forward. In some cases, however, the debtor can propose a reorganization plan without its creditors’ involvement. This can be done through a “cramdown” bankruptcy or by pursuing a “small business bankruptcy” under Subchapter V. What? A reorganization plan outlines how a debtor will pay back its creditors over time. The obligation to satisfy the debtor’s outstanding financial obligations is what distinguishes a Chapter 11 bankruptcy from a “liquidation” bankruptcy under Chapter 7. But, the “reorganization” aspect of a reorganization plan means that the debtor won’t be held to its current monthly payment obligations. Instead, the plan consolidates the debtor’s obligations in order to achieve the parallel goals of satisfying the debtor’s creditors and allowing the debtor to continue operating. With this in mind, a typical reorganization plan will address considerations such as: Identifying classes of creditors and their respective rights Specifying how in each class will be paid going forward Making clear when creditors’ claims will be considered satisfied Selling debtor assets and assuming or rejecting executory contracts Changing payment terms and making other amendments if necessary These are just broad examples. Reorganization plans can range from relatively straightforward to highly structured and sophisticated, and debtors can—and should—work with their counsel to develop a custom-tailored plan that protects their interests going forward as much as possible. When? There are several business, financial and legal considerations involved in deciding when a business should pursue reorganization under Chapter 11. Ultimately, there is no single “right” answer. Instead, owners and executives of financially distressed companies must work with their company’s counsel to thoroughly assess their options and make an informed decision about how best to proceed under the circumstances at hand. Broadly speaking, however, pursuing reorganization under... - Published: 2025-07-17 - Modified: 2025-08-12 - URL: https://elpllc.law/blog/bankruptcy-fraud-and-abuse-how-to-avoid-allegations-during-a-chapter-11-reorganization/ A recent article from the Government Accountability Project discusses the role of forensic accountants employed by the U. S. Department of Justice (DOJ) in uncovering fraud and abuse during the bankruptcy process. While the article focuses specifically on the DOJ’s recent firing of a forensic accountant in Texas, forensic accountants continue to play a key role in bankruptcy cases in Florida and other jurisdictions across the country. Since fraud and abuse allegations can derail the bankruptcy process (and potentially even lead to federal criminal charges), it is imperative that business owners and executives work closely with an experienced Miami business bankruptcy attorney to avoid costly mistakes throughout the process. Understanding When Businesses (and Their Owners and Executives) Can Face Allegations of Bankruptcy Fraud and Abuse All of this raises an important question: When can businesses (and their owners and executives) be held liable for bankruptcy fraud and abuse? Bankruptcy fraud and abuse can take many different forms. “Fraud” and “abuse” are both defined broadly under federal law, and the U. S. Trustee (which oversees Chapter 11 bankruptcy proceedings and is part of the DOJ) can investigate potential fraud and abuse in a wide range of circumstances. Some of the more common examples of issues that can lead to high-risk scrutiny include: Concealing Assets from the Bankruptcy Court According to the Legal Information Institute (LII), “[n]early 70% of all bankruptcy fraud involves the concealment of assets. ” When initiating the Chapter 11 bankruptcy process, businesses must disclose their assets to the bankruptcy court. This is done by attaching a Schedule of Assets to the business’s bankruptcy petition. Since a business’s assets play a key role in determining both its ability to pay and its viability as a going concern, concealing assets is considered a form of bankruptcy fraud. Concealing Revenue from the Bankruptcy Court Concealing revenue is considered a form of bankruptcy fraud as well. Along with filing a Schedule of Assets, businesses seeking to reorganize their debts under Chapter 11 must also file a Schedule of Current Income and Expenditures. If a business understates its income or overstates its expenditures (or attempts to hide expenditures that it doesn’t want to be made known to creditors or the court), this can potentially jeopardize the bankruptcy process. Fraudulent Conveyances and Preferential Transfers Fraudulent conveyances are prohibited under the U. S. Bankruptcy Code, and they are subject to being unwound by the U. S. Trustee. They fall into two broad categories: Conveyances made with action intent to defraud; and, Conveyances made for less than reasonably equivalent value. Preferential transfers can give rise to bankruptcy fraud claims as well. If an insolvent business makes a payment or transfer to one of its creditors to the detriment of others, this can have adverse consequences for the business’s Chapter 11 reorganization efforts as well. Omitting Creditors or Failing to Provide Notice Businesses pursuing reorganization under Chapter 11 must produce a complete and accurate list of their creditors. They must also notify their creditors of their bankruptcy proceeding; and, “[w]hen a debtor amends [its] schedule of liabilities to add a creditor or change the status of any claims to disputed, contingent, or unliquidated, the debtor must provide notice of the amendment to any entity affected. ” Omitting creditors from a business’s bankruptcy filing or failing to provide adequate notice as required can also give rise to fraud allegations. Misrepresenting Future Business Prospects or Investments Businesses (and their owners and executives) can also get into trouble if they misrepresent the business’s future financial prospects or capital investments when negotiating with creditors. Giving a false impression of the business’s... - Published: 2025-06-30 - Modified: 2025-08-12 - URL: https://elpllc.law/blog/contract-disputes-involving-mandatory-adr-when-mediation-or-arbitration-is-required/ Many commercial contracts include provisions that mandate mediation or arbitration (or both) in the event of a dispute between the parties. These mandatory alternative dispute resolution (ADR) clauses have become ubiquitous, and, in most cases, both parties will prefer to use ADR rather than litigate their dispute in state or federal court. Generally speaking, ADR is more cost-effective than litigation, and an experienced Miami commercial litigation attorney will be able to help facilitate an efficient resolution—while also focusing on preserving the parties’ commercial relationship (if desired). 5 Important Considerations for Commercial Contract Disputes Involving Mandatory ADR When facing a commercial contract dispute that is (or that may be) subject to mandatory mediation or arbitration, there are several important factors to consider. Here are some key insights from the commercial litigation attorneys at Edelboim Lieberman: 1. Is the Dispute Subject to the Contract’s Mandatory ADR Clause? Even when commercial contracts contain mandatory ADR clauses, these clauses will often include carveouts or exceptions for certain types of claims. In particular, if a contractual breach presents a risk for immediate and irreversible damage (i. e. , in a case involving misuse of confidential information), this is a common scenario in which the non-breaching party will still have the right to go to court and seek immediate injunctive relief. With this in mind, when facing a dispute under a contract that contains a mandatory ADR clause, a key preliminary question is: Does the mandatory ADR clause apply? If it does, these clauses are generally enforceable in commercial contracts under Florida law, so your company will most likely need to comply with the terms to which it has agreed. But, if the contract’s mandatory ADR clause doesn’t apply, you will need to consult with your company’s Miami commercial litigation attorney regarding the best strategy under the circumstances at hand. 2. Does the Contract Require Mediation, Arbitration, or Both? If the contract’s mandatory ADR clause applies, then one of the next questions that needs to be answered is: Does the contract require mediation, arbitration, or both? Typically, mandatory ADR clauses in commercial contracts will take one of the following forms: They will require good-faith mediation as a precursor to pursuing litigation; They will require good-faith mediation as a precursor to pursuing arbitration; or, They will require arbitration for all covered disputes. While mediation and arbitration are both forms of ADR, they are very different. Mediation is essentially a form of guided negotiation, while arbitration results in a binding resolution issued by a neutral third party. Generally speaking, mediation is more likely to result in an amicable resolution that preserves the parties’ commercial relationship, while arbitration more often spells the end of a commercial relationship. With that said, neither outcome is guaranteed in either type of proceeding, and commercial parties can—and should—work with their legal counsel to target the resolution that makes the most sense under the circumstances at hand. 3. Where Is the Mediation or Arbitration to Take Place? Along with specifying when mediation or arbitration is required, mandatory ADR clauses will also typically specify where mediation or arbitration is to take place. When both parties are located in the same geographic area, this generally won’t be an issue—the parties will simply agree to resolve their dispute locally. But, when the parties are not located in the same geographic area, choice of jurisdiction and venue may be a point of negotiation during the contracting process. If one party is required to travel, this will add to the costs of pursuing ADR, and this can influence parties’ decisions regarding how to proceed in some cases. 4. Is... - Published: 2025-06-23 - Modified: 2025-08-04 - URL: https://elpllc.law/blog/when-is-it-time-to-talk-to-a-business-bankruptcy-attorney/ As a business owner, it can be difficult to know when it is time to consider seeking financial relief through the bankruptcy process. While it will usually make sense to try to figure out a way to avoid a bankruptcy filing for a period of time, there is also a point at which waiting any longer can potentially start to have adverse consequences. Informed and strategic decision-making is critical—and, ultimately, you will need to make your decision based on the advice of an experienced Miami business bankruptcy attorney. But, when should you engage a business bankruptcy attorney? How do you know when it is time to stop looking for a business solution and start considering the legal options you have available? Here are some key considerations: You Should Talk to a Business Bankruptcy Attorney Before Things Get Bad The short answer to these questions is that you should talk to a business bankruptcy attorney before things get bad. There are a few reasons why: Your Business May Be Able to Pursue Financial Alternatives that Avoid the Need for a Chapter 11 (or Chapter 7) Filing – While a Miami business bankruptcy attorney will be able to help you understand your business’s bankruptcy options, an experienced attorney will also be able to help you consider alternatives to a Chapter 11 (or Chapter 7) filing. Generally speaking, the earlier you address your business’s financial situation, the more options you will have available. Creditors will be willing to work with struggling businesses in many cases, and renegotiating key contracts (or pursuing other alternatives) could be enough to re-establish a positive cash flow. Waiting Longer Than Necessary to Initiate a Business Bankruptcy Can Lead to Unnecessary Challenges – While taking action sooner than later can help maximize your options, waiting longer than necessary can lead to unnecessary challenges. If your business’s creditors pursue collection, for example, this can present a high-risk scenario. Even though filing for bankruptcy triggers the automatic stay (which stops most collection proceedings), it may be best to take a proactive approach that avoids collection actions entirely. You Can Learn About Your Business’s Options in a Free, No-Obligation (and Completely Confidential) Consultation – When your business is in financial distress, ensuring that you are making informed and timely decisions costs you nothing. At Edelboim Lieberman, we provide free, no-obligation (and completely confidential) initial consultations. Once you get in touch, we will arrange for you to speak with one of our business bankruptcy attorneys one-on-one, and this attorney will provide the information and insights you need to move forward with confidence. Ultimately, if you have concerns about your business’s financial standing, there is no reason to wait to seek advice. Between the various types of business bankruptcy filings and the alternatives to pursuing reorganization (or liquidation) in court, there are several potentially viable options for restoring your business’s financial stability. An experienced attorney will be able to help you consider all of these options so that you can make an informed decision about how best to proceed. How a Business Bankruptcy Attorney Can Help Let’s say you schedule a free consultation with a Miami business bankruptcy attorney at Edelboim Lieberman. What can you expect? Here are just some of the ways an experienced attorney at our firm can help: 1. Analyzing Your Business’s Financial Condition and Risks Our attorneys can thoroughly analyze your business’s financial condition and risks with a focus on the legal implications involved. This includes not only the viability and benefits of filing for bankruptcy, but also the risks (and opportunities) that exist outside of the bankruptcy process. By... - Published: 2025-06-16 - Modified: 2025-08-04 - URL: https://elpllc.law/blog/what-are-the-different-types-of-business-bankruptcies/ If your business is in financial distress, filing for bankruptcy could be the best option. Filing for bankruptcy provides immediate relief from creditors’ collection efforts, and, depending on the type of business bankruptcy you choose, going through the process could be a cost-effective way to either wind up your business’s operations or restructure your business’s operations for the future. In either case, working closely with an experienced Miami business bankruptcy attorney will be essential—as you will want to ensure that you are making informed and strategic decisions with your business, your customers and your own personal best interests in mind. Strategically leveraging the benefits of the business bankruptcy process starts with choosing the best path forward under the circumstances at hand. Once you choose how to proceed, you can focus on maximizing the benefits of the specific type of business bankruptcy you have chosen. 4 Bankruptcy Options for Struggling Businesses in Florida Broadly speaking, struggling businesses in Florida have four main options when it comes to filing for bankruptcy. As we discuss below, each of these options has its own unique set of benefits and limitations, and it is imperative to choose the best option under the specific circumstances at hand: 1. Traditional Chapter 11 “Reorganization” Bankruptcy In a traditional Chapter 11 “reorganization” bankruptcy, the focus is on finding a way for the business to manage its debts on an ongoing basis—with the goal of strengthening the business’s financial position going forward. As with all business bankruptcy proceedings, filing under Chapter 11 triggers the U. S. Bankruptcy Code’s automatic stay, and this prevents the business’s creditors from pursuing collection during the bankruptcy process (subject to limited exceptions). In a traditional Chapter 11 case, creditors have the opportunity to play a significant role in the process, and finalizing the process generally involves negotiating a reorganization plan that is reasonably satisfactory to the business’s creditors. Ultimately, however, the Chapter 11 process serves to reduce the business’s outstanding financial obligations so that it can make timely payments going forward while also devoting resources to growth. 2. Subchapter V “Small Business” Bankruptcy Under Chapter 11 Subchapter V of Chapter 11 establishes special provisions for “small businesses” that need to reorganize their debts in order to regain financial stability. As of April 1, 2025, the debt limit to qualify as a small business under Subchapter V is $3,424,000. For qualifying businesses, pursuing a small business bankruptcy under Subchapter V can offer several benefits—and this will be the preferred approach in many cases. Some of the benefits of filing under Subchapter V include: A disclosure statement is not required; Creditors cannot file competing reorganization plans; There is no unsecured creditors’ committee; The “absolute priority” rule that protects certain unsecured creditors does not apply; and, Creditor consent is not required to finalize the business’s reorganization plan. All of these factors help to streamline the process and minimize the costs involved. Given these benefits—and given the fact that filing under Subchapter V also affords access to the other benefits that are generally available under Chapter 11—businesses that qualify to file under Subchapter V generally won’t have a compelling reason to pursue a traditional Chapter 11 filing. 3. “Small Business Case” Under Chapter 11 Another option for qualifying small businesses is to pursue a “small business case” under Chapter 11. The “small business case” option was established under the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), which Congress enacted in 2005. Congress enacted Subchapter V subsequent to the enactment of the BAPCPA; and, generally speaking, filing under Subchapter V offers greater benefits. As a result, if a business... - Published: 2025-05-30 - Modified: 2025-06-25 - URL: https://elpllc.law/blog/contract-disputes-involving-third-party-claims-indemnification-insurance-more/ While many contract disputes arise out of disagreements between the parties involved, contract disputes can also involve third-party claims. In these cases, understanding the parties’ respective rights requires a critical assessment of the relevant contract terms—including the indemnification and insurance clauses, among others. Learn more from an experienced Miami commercial litigation attorney at Edelboim Lieberman: Common Examples of Contract Disputes Involving Third-Party Claims Contract disputes involving third-party claims can arise in a wide range of scenarios. In all cases, understanding the implications of the relevant contract terms starts with understanding the substantive nature of the third-party claim (or claims) at issue. Some common examples of scenarios that can lead to disputes involving third-party claims include: Cybersecurity Breaches – As cybersecurity threats become increasingly common, disputes over cybersecurity liability are becoming increasingly common as well. If a company faces claims from its clients, customers or employees due to a cybersecurity breach, these claims can trigger a dispute between the company and its cybersecurity vendor. Failure to Deliver – If a manufacturer or wholesaler fails to deliver products to (or on behalf of) a company, this can lead to third-party claims based on the company’s failure to deliver under its obligations to its customers. Delayed deliveries and deliveries of non-conforming products can lead to third-party claims as well. Failure to Perform – Along with failure to deliver, failure to perform is another common cause of contract disputes involving third-party claims. For example, if a subcontractor fails to perform its work on time or up to specification, this could leave a prime contractor facing litigation with its client or customer. Personal Injury Claims – Personal injury claims are a common source of litigation between commercial parties as well. These cases can involve claims from end-users of products or services delivered through a multi-party chain of distribution. Product Defect Claims – Product defect claims involving injuries or fatalities can also lead to litigation between suppliers, manufacturers, distributors, retailers and other parties. If an end user files a product defect claim against a retailer, the retailer may be able to seek indemnification or another form of protection from one of its commercial partners. Again, these are just examples. Third-party claims can lead to contract disputes in a wide range of other scenarios as well. Any time a commercial party is not directly and solely liable for a claim it is facing, that party will want to consult with an experienced Miami commercial litigation attorney regarding the viability of using its contractual protections to shift liability to another party. Key Terms in Contract Disputes Involving Third-Party Claims Shifting liability for a third-party claim generally involves relying on contractual protections. While common law principles can be used to shift liability in some cases, more often than not, commercial parties will use contractual protections to provide certainty (and mitigate their risk) in the event that a third-party claim arises. With that said, liability-shifting provisions in commercial contracts often are not as clear as they should be. Additionally, in some cases, third-party claims will involve issues that contracting parties had not anticipated (and could not have reasonably anticipated) when they entered into their contract. As a result, when a third party files a claim, a key first step is to thoroughly review the parties’ contract to identify all relevant terms and assess their implications under the specific circumstances at hand. With this in mind, some examples of key terms in contract disputes involving third-party claims include: Representations and Warranties Representations and warranties will play a key role in commercial contract disputes involving third-party claims in many cases. If a... - Published: 2025-05-23 - Modified: 2025-06-25 - URL: https://elpllc.law/blog/7-tips-for-preparing-to-avoid-unnecessary-issues-during-a-business-bankruptcy/ While successfully navigating the business bankruptcy process can help companies restore their financial stability and get back on the path toward long-term growth, issues during the process can lead to less-than-satisfactory results. As a result, avoiding unnecessary issues is essential. What can companies do to avoid unnecessary issues during the business bankruptcy process? Here are seven tips from an experienced Miami Chapter 11 bankruptcy lawyer at Edelboim Lieberman. Tip #1: Make Sure Bankruptcy is the Best Option One of the most important steps companies can take when contemplating reorganization under Chapter 11 is to ensure that bankruptcy is the best option. While reorganizing under Chapter 11 will be the best option in many cases, there are alternatives that will be more favorable in some circumstances. For example, some potential alternatives to a Chapter 11 filing include: Renegotiating with the company’s lenders Renegotiating with the company’s vendors or customers Conducting an assignment for the benefit of creditors Entering into forbearance agreements Restructuring the company’s internal operations to improve cash flow Depending on a company’s specific circumstances, these options (among others) may or may not provide the financial stability the company needs. But, evaluating all potential options will allow the company’s leadership team to make informed decisions. If a Chapter 11 filing is the best option, confirming that this is the case will allow for confident and strategic decision-making going forward. Tip #2: Evaluate Potential Creditor Claims and Defenses While companies that file under Chapter 11 are entitled to significant protections under the U. S. Bankruptcy Code, creditors have rights during the bankruptcy process as well. With this in mind, when evaluating the viability of a Chapter 11 filing, it is important to assess the viability of potential creditor claims and defenses as well. Some examples of potential issues in this area include: Reclassification claims Fraudulent transfer claims Preferential transfer claims Turnover actions Equitable subordination actions Here too, these are just examples. Creditors can challenge companies’ efforts to reduce or eliminate their outstanding debts on various grounds, and many creditors will fight to protect their financial interests by all means available. By anticipating potential creditor claims and defenses—and by preparing for them in advance—companies can help ensure that the Chapter 11 bankruptcy process is as smooth and uneventful as possible. Tip #3: Develop a Strategic Reorganization Plan These days, most companies that pursue reorganization under Chapter 11 do so under subchapter V. This is a relatively new provision of the U. S. Bankruptcy Code that establishes streamlined procedures for “small business” bankruptcies. Currently, the debt limit for filing a “small business” case under subchapter V is $7. 5 million. When filing under subchapter V, companies must submit a proposed reorganization plan within 90 days of starting the process. Usually, however, it will make sense for companies to include a proposed reorganization plan with their initial filing. Companies have the option of submitting a proposed reorganization plan in traditional Chapter 11 cases as well. Along with the financial considerations involved, there are also various strategic considerations involved—and working closely with experienced bankruptcy counsel to develop a strategic reorganization plan can help companies avoid issues that have the potential to add costs and delays to the process. Tip #4: Gather All Necessary Documentation From evaluating potential creditor claims and defenses to developing a strategic reorganization plan, essentially all steps in the Chapter 11 reorganization process require some form of (and, in many cases, multiple forms of) documentation. Gathering this documentation up front can also help companies avoid unnecessary issues and delays. For many companies (and especially for larger companies), gathering the documentation needed for... - Published: 2025-05-16 - Modified: 2025-06-25 - URL: https://elpllc.law/blog/strategic-considerations-for-reorganizing-under-chapter-11/ Reorganizing a company’s debts under Chapter 11 can be an effective way to reduce the company’s debt load and preserve its viability as a going concern. There are several ways to approach the reorganization process under Chapter 11, and by thinking strategically about the opportunities that are available, company executives can maximize the benefits of investing in a Chapter 11 filing while also mitigating the potential risks involved. Keep reading to learn more from an experienced Miami business bankruptcy attorney at Edelboim Lieberman. 5 Key Strategic Considerations for Companies Considering a Chapter 11 Bankruptcy From deciding whether to file at all to deciding how to deal with the company’s creditors during the process, there are several strategic considerations involved in seeking to reorganize a company’s debts under Chapter 11. Here are five key examples: 1. Filing Promptly to Avoid (or Pause) Collection Activities Can Mitigate the Company’s Litigation Risk When contemplating a Chapter 11 filing, informed decision-making is essential. There are a variety of potential alternatives available; and, if pursuing one of these alternatives makes sense—even as a temporary measure in the short-term—it will be important not to rush into the bankruptcy process. At the same time, however, there can be benefits to initiating a Chapter 11 bankruptcy promptly. This is especially true for companies that are at imminent risk of facing collection action (or that are facing collection action already). Most significantly, initiating a Chapter 11 case triggers the automatic stay under the U. S. Bankruptcy Code. Once the automatic stay has been triggered, creditors are generally barred from pursuing collection action for the remainder of the bankruptcy process—and they must have specific grounds to seek relief from the automatic stay in court. 2. Streamlining the Process Will Reduce the Costs (and Risks) Involved Most financially distressed companies will benefit from streamlining the Chapter 11 bankruptcy process, as this will reduce both the costs and the risks involved. There are a variety of steps that companies can take to ensure that the process is as efficient as possible. One of these steps is to initiate their Chapter 11 filing under subchapter V. Under subchapter V, companies that have less than $7. 5 million in debt are eligible to pursue a streamlined process that helps to facilitate a favorable resolution while also limiting the options that creditors have to intervene along the way. If your company is eligible to file under subchapter V—and if reorganizing your company’s debts through bankruptcy makes sense under the circumstances at hand—this could be the best option your company has available. Another way that companies can often streamline the Chapter 11 process is by filing what are commonly referred to as “first day motions. ” Companies can use first day motions to secure court approval for things like seeking debtor-in-possession (DIP) financing, paying employment-related expenses and paying critical vendors—which might otherwise lead to disputes with the company’s creditors later in the process. As their name suggests, there are time sensitivities involved with leveraging “first day motions,” so an informed and proactive approach is essential for making strategic decisions. 3. Submitting a Proposed Reorganization Plan at the Time of Filing Can Improve the Chances of Securing Confirmation Without Creditor Intervention Companies have the option of submitting a proposed reorganization plan in traditional Chapter 11 bankruptcy cases, and, in subchapter V cases, they are generally required to submit a proposed reorganization plan within 90 days of filing their bankruptcy petition. In both types of cases, however, there can be strategic benefits to submitting a proposed reorganization plan at the time of filing. Among other things, submitting a... - Published: 2025-04-30 - Modified: 2025-06-25 - URL: https://elpllc.law/blog/contract-disputes-involving-cybersecurity-breaches-key-insights-for-business-owners/ Cybersecurity breaches are a major concern for businesses of all sizes and in all industries. Whether attackers target customers’ information or a business’s own proprietary data, the financial and reputational costs can be devastating. As a result, cybersecurity breaches will often lead to litigation—and businesses will often need to hire a Miami breach of contract lawyer to both defend them against customer claims and pursue claims against their cybersecurity vendors. Contract Disputes with Customers: What Does the Contract Say? If a cybersecurity breach compromises customers’ data, a careful review of all relevant customer contracts will be essential for assessing the company’s obligations and risks. Sophisticated customers are increasingly negotiating cybersecurity provisions into their commercial contracts, and if companies are not careful, they can find themselves facing significant liability exposure. When reviewing customer contracts in response to a cybersecurity breach, some of the key questions are: Does the company have standard cybersecurity language in its customer contracts? Have any customers negotiated this language? Have any customers successfully requested the addition of cybersecurity language to their contracts? In all relevant contracts, what are the company’s cybersecurity-related obligations? In all relevant contracts, what is the scope of the company’s potential liability exposure? Along with assessing potential liability related to the breach itself, companies must also assess potential liability related to any breach notification obligations or other affirmative contractual obligations they may have. After a cybersecurity breach, an informed, cohesive, and comprehensive strategy is key—and this starts with gaining a clear understanding of all relevant facts and circumstances. In addition to the types of substantive questions we just discussed, companies that are facing potential contract disputes with their customers will also need to address a variety of other legal considerations as well. For example: Acknowledgements and Waivers – Beyond examining any contract provisions that are specific to cybersecurity, companies should also examine their contracts’ general acknowledgements and waivers. If the company’s cybersecurity obligations or its customers’ breach-related claims are subject to any of these more general provisions, this could provide a clear defense to liability. If a contract contains detailed cybersecurity provisions, these provisions may include various breach-specific acknowledgements and waivers as well. Damages Caps – Any contractual damages caps in customers’ contracts could come into play in this scenario as well. Damages caps can be key risk mitigation tools; and, in many cases, companies will cap their liability at the value of the contract (or some other amount)—which may be significantly less than the losses resulting from a breach. Insurance Coverage for Cybersecurity Breaches – If the company is liable for a cybersecurity breach, its insurance coverage could play a critical role in resolving any breach-of-contract litigation. If any customer contracts include mandatory insurance provisions that apply to cybersecurity breaches, these provisions should be reviewed to ensure that the company has the requisite coverage available. Indemnification and “Hold Harmless” Language – It will be important to review all relevant contracts’ indemnification and “hold harmless” language as well. If, for example, customers have agreed to hold the company harmless for cybersecurity breaches involving sensitive data that they voluntarily or inadvertently shared with the company, this could also play a central role in any ensuing dispute resolution proceedings. Dispute Resolution – If a company’s customer contracts include dispute resolution provisions (i. e. , provisions for mandatory mediation or arbitration), these provisions will need to be carefully reviewed to ensure that they apply to the circumstances at hand. If they do, then enforcing customers’ obligations to mediate or arbitrate could be a key cost-mitigation strategy. On the same token, if customers have the ability to seek... - Published: 2025-04-23 - Modified: 2025-06-25 - URL: https://elpllc.law/blog/surviving-and-thriving-after-a-chapter-11-bankruptcy/ While bankruptcy is often viewed as having negative connotations, the reality is that there are several ways that companies of all sizes can (and do) leverage the Chapter 11 bankruptcy process to their advantage. Companies that timely reorganize their debts under Chapter 11 can come out stronger on the other side, and they can preserve their relationships with key creditors during the process. When used strategically, business bankruptcies will have far more upsides than downsides, and by working closely with an experienced Miami Chapter 11 bankruptcy lawyer, companies can ensure that they get as much out of the process as possible. Short-Term Financial Benefits of a Chapter 11 Bankruptcy Filing Pursuing a Chapter 11 bankruptcy can have both short-term and long-term benefits. The short-term benefits enable companies to navigate the process strategically, rather than rushing through it to avoid financial calamity. As a result, the short-term benefits of the process can ultimately have favorable long-term consequences as well. Some of the key short-term financial benefits of a Chapter 11 bankruptcy filing include: Automatic Stay – Filing for bankruptcy under Chapter 11 triggers an automatic stay, which prevents the company’s creditors from pursuing collection during the bankruptcy process. Continued Business Operation – Typically, companies that file under Chapter 11 are able to continue their business operations during the bankruptcy process. Debtor in Possession (DIP) Financing – Most Chapter 11 debtors are eligible for debtor in possession (DIP) financing. This can provide a much-needed capital infusion that helps sustain the business and position it for success post-bankruptcy. Strategic Planning – With the automatic stay, company owners and executives have the time they need to make strategic decisions focused on what is best for the company in the long term. Debt-Specific Approach – During the Chapter 11 bankruptcy process, companies can take a debt-specific approach focused on protecting key creditor relationships while also structuring a manageable debt load. Leveraging the Chapter 11 Process for Long-Term Financial Stability In the long term, pursuing a Chapter 11 bankruptcy can serve as the first step on the path toward profitability. Companies that go through the Chapter 11 process are often not only financially stronger, but also more efficient and nimble. Some of the key long-term financial benefits of a Chapter 11 bankruptcy filing include: Debt Restructuring – The primary purpose of a Chapter 11 filing is to restructure the company’s debts. This allows the company to meet its financial obligations in the ordinary course of business while still meeting payroll, paying its bills and investing in the future. Rebuilding Trust – By going through the Chapter 11 process in good faith (and avoiding default), companies can rebuild trust with their creditors—and they can leverage this trust to meet their future needs. Improving Efficiency – Oftentimes, going through the reorganization process will allow companies to identify and explore efficiencies that they did not previously have the time or resources to consider. Avoiding Collection-Related Litigation – Avoiding default also means avoiding collection-related litigation—which itself can prove costly and potentially threaten companies’ viability. Facilitating Long-Term Growth – Ultimately, restoring a company’s financial stability through the Chapter 11 process can facilitate long-term growth. A strategic reorganization plan will leave the company with the flexibility and cash flow it needs to focus on its long-term business goals. 5 Key Considerations for Successfully Navigating a Chapter 11 Business Bankruptcy While going through the Chapter 11 bankruptcy process can offer several benefits to struggling companies, realizing these benefits requires an informed and forward-thinking approach. With this in mind, here are five key considerations for successfully navigating a Chapter 11 business bankruptcy: 1. Eligibility... - Published: 2025-04-16 - Modified: 2025-06-25 - URL: https://elpllc.law/blog/involuntary-bankruptcy-what-florida-business-owners-and-executives-need-to-know/ While businesses can use bankruptcy as a tool to avoid collection, alleviate financial strain, and restructure their debts for the future, creditors can use involuntary bankruptcy as a tool to protect their interests as well. If your business is facing an involuntary bankruptcy petition, there is a lot you need to know, and it will be important for you to consult with an experienced Miami bankruptcy litigation attorney who can help you make informed and strategic decisions with your business’s long-term best interests in mind. 5 Key Considerations for Businesses Facing an Involuntary Bankruptcy Proceeding in Florida For Florida business owners, responding effectively to an involuntary bankruptcy proceeding requires careful consideration of several factors. Here are five key examples: 1. Is Your Business Facing an Involuntary Bankruptcy Proceeding Under Chapter 7 or Chapter 11? Under Section 303(a) of the U. S. Bankruptcy Code, creditors can initiate an involuntary bankruptcy proceeding under either Chapter 7 or Chapter 11. Bankruptcy proceedings under Chapter 7 and Chapter 11 are very different, and, as a result, one of the first facts you need to discern is which type of bankruptcy case your business is facing. Chapter 7 bankruptcy cases involve the liquidation of the debtor’s assets. Generally speaking, this means winding up the debtor’s affairs (and shutting down the business). Chapter 11 bankruptcy cases, in contrast, involve reorganizing the debtor’s liabilities. In Chapter 11 cases, the goal is to find a way for the debtor to reduce its monthly debt load so that it can continue operating as a going concern. Unless you are prepared to shut down your business, if your business is facing an involuntary Chapter 7 bankruptcy proceeding, you will need to either fight the proceeding in its entirety or seek to have it converted to Chapter 11. Both of these are options under varying circumstances, and they are both options you will want to discuss with an experienced Miami bankruptcy litigation attorney promptly. 2. Did the Creditor that Filed the Involuntary Bankruptcy Petition Meet All Applicable Statutory Requirements? When seeking to initiate an involuntary bankruptcy proceeding—whether under Chapter 7 or Chapter 11—creditors must meet all applicable statutory requirements. These requirements include (but are not limited to): Number of Creditors – If a business has fewer than 12 creditors, then any one of its creditors can initiate an involuntary bankruptcy proceeding. However, if a business has 12 or more creditors, then at least three creditors with non-contingent claims must come together to force a bankruptcy case under Chapter 7 or Chapter 11. Value of Qualifying Claims – Involuntary bankruptcy petitions are also subject to minimum requirements concerning the amount at issue. As of 2025, creditors seeking to force a Chapter 7 or Chapter 11 bankruptcy must stand to recover at least $21,050. Procedural Requirements – Just like debtors, creditors seeking relief through the federal bankruptcy process must meet all procedural requirements. If a creditor seeking to initiate an involuntary bankruptcy proceeding does not follow the stringent requirements for filing a bankruptcy petition in federal court, this alone can provide grounds for dismissal. A creditor’s failure to meet any of the applicable statutory requirements for initiating an involuntary bankruptcy proceeding can potentially serve as a defense for the debtor involved. As we discuss below, however, business owners who are facing involuntary bankruptcy proceedings will want to think strategically about whether seeking dismissal is the best option—or whether they may want to take advantage of the opportunity to leverage the benefits of the bankruptcy process. 3. Is Your Business “Generally Not Paying [Its] Debts as Such Debts Become Due”? Under Section 303(h)(1) of... - Published: 2025-03-31 - Modified: 2025-04-03 - URL: https://elpllc.law/blog/partner-brett-d-lieberman-serves-as-panelist-for-cle-program-on-insolvency-options-for-florida-businesses/ Partner and Miami bankruptcy lawyer Brett D. Lieberman recently served as a panelist for a continuing legal education (CLE) program presented by the Florida Bar’s Business Law Section. The CLE program, titled Insolvency Options for Florida Businesses, provided members of the Business Law Section with insight into the bankruptcy and receivership processes, as well as various alternatives to bankruptcy and receivership for struggling businesses in Florida. Bankruptcy, Receivership and Their Alternatives When a business is struggling financially, it is critical that the business’s owners make informed and strategic decisions about their next steps. In many cases, filing for bankruptcy under Chapter 11 is the right option. Pursuing reorganization under Chapter 11 provides the opportunity to continue operating while the business’s creditors are prevented from pursuing collection (subject to only limited exceptions); and, at the end of the process, the business emerges with a manageable debt load that allows its owners to focus on the future instead of being hampered by the past. Receivership can provide a path forward in some cases as well. With a receivership, a third party (the “receiver”) temporarily takes control of the business’s assets and uses them to satisfy one or more of the business’s secured debts. Although receivership will often be a precursor to bankruptcy, it can also be used to stave off the need for reorganizing under Chapter 11 (or liquidating under Chapter 7) in some cases. While bankruptcy and receivership are two options, they are not the only options that are available. There are also several alternatives to bankruptcy and receivership that can prove both viable and cost-effective in many cases. Some examples of these alternatives are: Assignment for the benefit of creditors Forbearance agreements Informal debt restructuring Internal corporate restructuring Renegotiating contracts with lenders, vendors and customers Ultimately, the best path forward for any business will depend on the specific circumstances at hand. Once again, informed and strategic decision-making is critical, and business owners will want to discuss all of their options with an experienced Miami bankruptcy lawyer. By having this discussion sooner rather than later, business owners can ensure that all of their options remain on the table, and they can efficiently target a resolution that allows for continued pursuit of their long-term objectives. About Partner and Miami Bankruptcy Lawyer Brett D. Lieberman Miami bankruptcy lawyer Brett D. Lieberman is a Partner at Edelboim Lieberman. He represents financially distressed businesses of all sizes in Chapter 11 bankruptcy proceedings and related legal matters. He has been recognized as a ‘Rising Star’ by Super Lawyers and an ‘Up and Comer’ by Florida Trend Magazine, and he has earned the prestigious AV Preeminent® peer rating from Martindale-Hubbell. Request a Free and Confidential Consultation at Edelboim Lieberman Do you have questions about reorganizing your company’s debts under Chapter 11 or pursuing an alternative to a business bankruptcy? If so, we invite you to get in touch. To request a free and confidential consultation at Edelboim Lieberman, call 305-768-9909 or tell us how we can get in touch online today. - Published: 2025-03-24 - Modified: 2025-04-03 - URL: https://elpllc.law/blog/important-changes-to-the-chapter-11-bankruptcy-process-take-effect-on-april-1-2025/ Some important changes to the Chapter 11 bankruptcy process are set to take effect on April 1, 2025. These changes impact the dollar-amount thresholds that trigger the applicability of various provisions of Chapter 11. Learn more from an experienced Miami bankruptcy litigation attorney at Edelboim Lieberman: Changes to Dollar-Amount Thresholds Under Chapter 11 The changes taking effect on April 1, 2025 will apply to Chapter 11 bankruptcy cases filed on or after this date. They will not impact bankruptcy cases that are already pending. The timing of these changes is based on a provision in the U. S. Bankruptcy Code that requires inflation adjustments every three years; although, notably, the impending upward adjustment of more than 13 percent is among the largest in U. S. history. The full list of changes has been published in the Federal Register (90 F. R. 8941). Here is a look at some of the most notable changes that apply to reorganizations under Chapter 11: Priorities for Employee Compensation and Employee Benefit Plan Contributions – Section 507 of the U. S. Bankruptcy Code establishes priorities for certain types of unsecured claims. These priorities mean that certain types of unsecured creditors are entitled to payment before others. Two examples of these priorities are the priorities for employee compensation and employee benefit plan contributions in Sections 507(a)(4) and 507(a)(5). These priorities are subject to a cap (“for each individual or corporation”) that is increasing from $15,150 to $17,150. Priority for Consumer Deposits – Another example of the priorities under Section 507 is the priority for consumer deposits. The cap for this priority is increasing from $3,350 to $3,800. Threshold for Filing an Involuntary Petition – While most businesses choose to reorganize their debts under Chapter 11 voluntarily, there are circumstances in which creditors can force businesses to reorganize. The threshold for filing an involuntary petition under Chapter 11 is increasing from $18,600 to $21,050. Threshold for Filing a Preference Claim – Preference claims provide a means for eligible creditors to seek to void payments and other transfers to other creditors during the Chapter 11 bankruptcy process. The threshold amount for bringing a preference claim against a business debtor under Chapter 11 is increasing from $7,575 to $8,575. “Small Business Debtor” Eligibility – The “small business debtor” provisions of Chapter 11 allow eligible businesses to pursue a streamlined process that minimizes the time and costs involved. This is known as a Subchapter V bankruptcy. The debt limit for businesses seeking to file under Subchapter V is increasing from $3,024,725 to $3,424,000. Speak with a Miami Bankruptcy Litigation Attorney at Edelboim Lieberman At Edelboim Lieberman, we guide businesses of all sizes through the Chapter 11 bankruptcy process. We also represent businesses in pursuing alternatives to bankruptcy, and we assist creditors with protecting their rights during debtors’ Chapter 11 (and Subchapter V) bankruptcy cases as well. If you would like to speak with a Miami bankruptcy litigation attorney at our firm, please call 305-768-9909 or request a free and confidential consultation online today. - Published: 2025-03-17 - Modified: 2025-04-03 - URL: https://elpllc.law/blog/a-closer-look-at-five-potential-alternatives-to-reorganizing-under-chapter-11/ We’ve talked previously about some potential alternatives to reorganizing under Chapter 11, and for businesses that are in financial distress, it is critical to consider all options that are on the table. While working with a Miami Chapter 11 bankruptcy lawyer to formally reorganize a business’s debts will be a viable—and necessary—solution in many cases, there are other options that can prove effective in many cases as well. As with all aspects of business ownership and management, when it comes to dealing with financial distress, informed decision-making is critical. By giving due consideration to all of the options that are on the table, business owners and executives can ensure that they are making confident and strategic decisions with their businesses’ long-term best interests in mind. 5 Alternatives for Florida Businesses Considering a Chapter 11 Bankruptcy With this in mind, what are the alternatives that business owners and executives should consider when they are contemplating reorganization under Chapter 11? Here are five key examples: 1. Forbearance Agreements Forbearance agreements provide businesses with an opportunity to come current on past-due debts without facing the consequences of default. These are agreements entered into between businesses and their creditors outside of the formal bankruptcy process. In exchange for agreeing not to foreclose or pursue other collection action as the result of the default at issue, creditors will typically require various protections. For example, creditors will want their forbearance agreements to clearly state that they are not waiving their right to repayment or to declare a default in the future. In this scenario, creditors also need to be careful to avoid establishing a “course of conduct” of not taking action in response to defaults. As a result, when negotiating forbearance agreements, it is imperative that businesses not focus solely on the financial relief they are seeking—the entire agreement requires careful consideration. In addition to helping business owners and executives decide whether seeking a forbearance agreement is a viable option, an experienced Miami Chapter 11 bankruptcy lawyer should also be able to assist with negotiating appropriate protections. 2. Informal Debt Restructuring Along with entering into forbearance agreements, other forms of informal debt restructuring can also serve as viable alternatives to reorganization under Chapter 11 in appropriate circumstances. In many cases, when a business is struggling to meet its financial obligations as they come due, it will be in both parties’ best interests to find a solution that preserves the relationship without the need for reorganization or litigation. There are various ways to approach restructuring a company’s existing debts outside of the formal bankruptcy process. Timing is often a key consideration as well—as businesses must be able to demonstrate the need for (and shared interest in) restructuring their debts without waiting so long that their creditors choose to pursue collection or an involuntary bankruptcy petition. Here too, an experienced Miami Chapter 11 bankruptcy lawyer should be able to assist with strategic decision-making. 3. Renegotiating Contracts with Lenders, Vendors and Customers In addition to, or in lieu of, seeking to restructure their outstanding liabilities, financially distressed businesses can often improve their financial circumstances by renegotiating contracts with lenders, vendors and customers. By seeking to renegotiate before going into default, businesses can often improve their posture in renegotiations, and this type of proactive approach can often help to preserve essential commercial relationships as well. Of course, these parties are not required to renegotiate, and some may be unwilling to do so—at least initially. Additionally, businesses often need to be careful when disclosing their financial struggles, particularly to customers who may not be interested in granting concessions or taking a... - Published: 2025-03-10 - Modified: 2025-04-03 - URL: https://elpllc.law/blog/7-key-considerations-when-settling-a-shareholder-or-partnership-dispute-in-florida/ Disputes between shareholders or partners can have wide-reaching implications. Not only can they have direct impacts on the shareholders or partners involved, but they can also indirectly impact other owners as well as the business’s employees and customers. As a result, when disputes arise, a strategic approach to dispute resolution is critical. This makes working with an experienced Miami shareholder dispute attorney critical as well. In many cases, negotiating a settlement will be in the best interests of all parties involved. Generally speaking, this will keep the business intact, and this will allow the business to continue providing jobs while also continuing to meet its customers’ needs. When working toward settling a shareholder or partnership dispute, it is important to keep all relevant interests in mind—while also keeping in mind that both sides retain the ability to go to court if necessary. Factors that Require Careful Consideration When Working to Resolve a Shareholder or Partnership Dispute Given these interests, what are the factors that warrant consideration when settling a shareholder or partnership dispute in Florida? Here are seven key considerations: 1. Ownership and Control Going Forward With any shareholder or partnership dispute, one of the key issues involved is how to address ownership and control of the business going forward. Will all of the business’ current owners retain their ownership interests going forward? Or is it in the business’ best interests for one or more of the current owners to part ways? These aren’t easy questions to answer, and when separation is warranted, shareholders or partners may have very different opinions about who should stay and who should go. But, a swift decision will often be necessary, and all of the business’s owners must ultimately focus on the business’s best interests going forward. 2. Fiduciary Duties During the Settlement Negotiation Process This brings up another important point: When facing an internal dispute, partners and shareholders remain bound by their fiduciary obligations. When acting in their capacity as owners, partners, and shareholders must generally act with the business’s best interests in mind. If a partner or shareholder breaches his or her fiduciary obligations during the settlement negotiation process—for example, by letting conflicting interests guide their decision-making—this can both complicate the dispute and increase the likelihood that the dispute will lead to litigation. Conversely, when the partners or shareholders involved in a dispute make a point of focusing strictly on what is best for the business, this can often help facilitate productive settlement negotiations. 3. Non-Competition and Non-Solicitation Obligations Post-Separation If the decision is made to part ways, this will give rise to an entirely new set of considerations. For the partner(s) or shareholder(s) who are leaving, this is when the focus will generally shift, in part, to protecting their own personal interests going forward. For example, in this scenario, it is fairly common for the departing individual(s) to be subject to non-competition and non-solicitation obligations. Non-competition obligations restrict former partners and shareholders’ ability to start (or work for) competing businesses, while non-solicitation obligations restrict former partners and shareholders from contacting the business’s customers. The scope of these restrictions is often the subject of intensive negotiations during the settlement process. While the business’s remaining owners will want these restrictions to be as comprehensive as possible (subject to applicable legal limits), those who are departing will want as much freedom and flexibility as they can negotiate. Striking the right balance requires informed and practical decision-making on both sides, and this is one area—among many—where the insights of an experienced Miami shareholder dispute attorney can be invaluable. 4. Using Mediation to Come to Terms... - Published: 2025-02-28 - Modified: 2025-02-28 - URL: https://elpllc.law/blog/shareholder-disputes-understanding-the-litigation-process-and-its-alternatives/ Shareholder disputes can involve a wide range of issues and competing interests. They can also proceed in a variety of different ways. As a result, when these disputes arise, informed decision-making is critical, and all shareholders involved need to ensure that they are taking appropriate steps with their long-term best interests in mind. Engaging an experienced Miami shareholder dispute attorney is a critical early step in this process. Broadly speaking, there are two types of shareholder disputes: (i) disputes in which shareholders need to enforce directors’ and executives’ fiduciary duties; and (ii) disputes between minority and majority shareholders. The litigation process in each of these types of cases is unique, and depending on the circumstances involved, shareholders may have various options for favorably resolving their disputes without litigation as well. Shareholder Derivative Litigation We’ll talk about disputes in which shareholders need to enforce directors’ and executives’ fiduciary duties first. These are referred to as “shareholder derivative” proceedings because shareholders are technically taking legal action on the company’s behalf. Directors and executives owe various fiduciary responsibilities to their companies. In short, directors and executives owe a duty to act in the company’s best interests, and when they fail to do so, they can be held accountable for any resultant losses. Some examples of potential grounds for pursuing litigation against directors and executives include: Misuse or misappropriation of company assets Usurping business opportunities for personal gain Self-dealing and other conflicts of interest Wasting company assets Failing to take action against waste, fraud, or other wrongdoing When shareholders have grounds to pursue a derivative action, there are specific steps they need to follow. One of the first steps is to submit a formal “demand” to the company’s board of directors (unless submitting a formal demand would be futile under the circumstances). This demand provides the board with an opportunity—and the obligation—to assess the validity of the shareholders’ allegations. If the board declines or refuses to take action, shareholders can then pursue their derivative action in court. At this stage, the company’s executives or directors will need to engage legal counsel, who will either focus on targeting a settlement or defending their clients against the shareholders’ derivative action by all means available. In the latter scenario, the executives’ or directors’ lawyers may assert a variety of defenses, including procedural defenses challenging the shareholders’ standing, their ability to effectively represent the company’s interests, and their choice of jurisdiction and venue. From here, a shareholder derivative action will proceed similarly to any other type of corporate litigation. The parties will engage in discovery and pre-trial motions practice, and they will prepare their respective claims and defenses for trial. Settlement will remain an option throughout this process, and the parties may choose to pursue mediation or arbitration as a more efficient and cost-effective alternative to litigating the action in court. A key aspect of shareholder derivative litigation is that if the shareholders’ claims are successful, any remedies will be awarded to the company—not to the shareholders themselves. Of course, this can ultimately benefit the shareholders as well, as it can help to preserve the value of their ownership interests in the company. Minority-Majority Shareholder Litigation In contrast to shareholder derivative litigation, minority-majority shareholder litigation involves a dispute between shareholders with different ownership and control rights. In these cases, minority shareholders sue their majority counterparts directly rather than taking legal action on behalf of the company. As a result, if their lawsuit is successful, they benefit directly (i. e. , by recovering damages or other remedies for majority shareholders’ fraud or misconduct). Similar to shareholder derivative actions, minority-majority... - Published: 2025-02-21 - Modified: 2025-02-28 - URL: https://elpllc.law/blog/protecting-creditors-rights-during-and-after-the-chapter-11-bankruptcy-process/ While Chapter 11 bankruptcy filings can present significant financial risks for creditors, there are also several tools, tactics, and strategies that creditors can use to protect their interests during the process. Creditors have clear options for protecting their rights after the reorganization process if necessary as well. Learn more from an experienced Miami bankruptcy litigation attorney at Edelboim Lieberman. Options for Protecting Creditors’ Rights During a Chapter 11 Bankruptcy Creditors have several options for protecting their rights during the Chapter 11 bankruptcy process. These options range from pursuing collection and seeking to avoid participating in the debtor’s reorganization altogether to asserting defenses to discharge during the reorganization process: Seeking Relief from the Automatic Stay When a debtor files for bankruptcy under Chapter 11, the automatic stay prevents its creditors from pursuing collection during the bankruptcy process. However, creditors can seek relief from the automatic stay on various grounds. If a creditor successfully files for relief from the automatic stay, it will be authorized to pursue collection—and it may be able to fully protect its interests without participating in the debtor’s reorganization. Section 362(d) of the U. S. Bankruptcy Code establishes three potential grounds for seeking relief from the automatic stay in a Chapter 11 case: “[F]or cause, including the lack of adequate protection;” In cases involving actions against property, the debtor lacks equity in the property at issue, and the property “is not necessary to an effective reorganization;” and, In cases involving a single piece of real estate, creditors are entitled to pursue collection unless the debtor meets certain additional requirements. In the vast majority of cases, seeking relief from the automatic stay involves asserting a “lack of adequate protection. ” A Miami bankruptcy litigation attorney at our firm can help you determine if this is an option under the circumstances at hand, and if so, we can seek appropriate relief at the earliest possible opportunity. Seeking a “Critical Vendor” Designation When going through the Chapter 11 bankruptcy process, debtors are prohibited from making certain payments that will reduce the size of their bankruptcy estate. This means that certain creditors won’t get paid. However, creditors that are designated as “critical vendors” during the process are entitled to continue receiving payment—so this can be a viable alternative to seeking relief from the automatic stay in some cases. Pursuing Commercial Options Along with pursuing options afforded to creditors under Chapter 11, creditors can also pursue commercial options in some cases. Here, timing can be extremely important, and creditors must be careful to ensure that their commercial efforts do not run afoul of the prohibitions imposed by Chapter 11. With this in mind, some examples of potential commercial options include: Stopping delivery of goods in transit; Asserting reclamation rights under the Uniform Commercial Code (UCC); and, Seeking assumption of executory contracts. All of these options are subject to restrictions and limitations, and they may or may not be the best option under the circumstances at hand. Here, too, our lawyers can help you make informed decisions and then proceed as warranted. Filing a Proof of Claim Creditors can file a proof of claim during the Chapter 11 bankruptcy process to ensure their right to participate. While this isn’t necessary in all cases, it may become necessary if either (i) the debtor fails to list a creditor’s claim on its schedule of debts or (ii) the debtor disputes a creditor’s claim for payment. In either scenario, promptly filing a proof of claim can be essential for avoiding an unwarranted discharge. Objecting to the Debtor's “First Day” Motions When initiating the Chapter 11 bankruptcy process,... - Published: 2025-02-14 - Modified: 2025-02-28 - URL: https://elpllc.law/blog/understanding-the-consequences-both-positive-and-negative-of-chapter-11-bankruptcy/ Deciding whether to reorganize a company’s debts under Chapter 11 requires careful consideration of several factors. While filing under Chapter 11 can have several positive consequences, there are potential negative consequences as well. Many of these potential negative consequences can be avoided with the help of an experienced Miami bankruptcy lawyer, but some are inherent in the process. As a result, informed decision-making is critical. Here are some of the key consequences (and potential consequences) of pursuing reorganization under Chapter 11. Immediate Relief Under the Automatic Stay Companies that file for bankruptcy under Chapter 11 receive immediate relief under the automatic stay. The automatic stay prevents creditors from pursuing collection during the bankruptcy process. This can free up the capital that companies need to remain in operation, and it can provide companies time to negotiate with their creditors and find a path forward that works for both parties. However, the automatic stay can also trigger litigation in some cases. Creditors can seek relief under the automatic stay on various grounds—and many will not hesitate to do so if this appears to be their least-costly option over the long term. Of course, defending against a motion for relief adds to the costs of the bankruptcy process for debtors, so the possibility of facing one (or more) of these motions is a factor that requires careful consideration during the pre-filing process. Continuing to Do Business as a “Debtor in Possession” Companies that file for bankruptcy under Chapter 11 are classified as “debtors in possession,” which means that they remain in possession of their assets throughout their bankruptcy proceedings. Since companies that file under Chapter 11 remain in possession of their assets, they can—and generally must—continue operating. In fact, the goal of reorganizing under Chapter 11 (instead of liquidating under Chapter 7) is to regain the financial stability needed to pursue both long-term stability and long-term growth. However, operating as a debtor in possession comes with limitations. Major decisions outside of the normal course of business will generally be subject to the court’s or trustee’s approval, and creditors will be monitoring the company’s decisions with a watchful eye (Chapter 11 debtors are also subject to various recordkeeping requirements during the process). When pursuing reorganization under Chapter 11, companies must be able to demonstrate a path toward profitability as well. These all present additional costs, challenges, and potential risks that may be avoidable with various bankruptcy alternatives. Eliminating Certain Debts During the Reorganization Process While the crux of a Chapter 11 bankruptcy proceeding is reorganizing the company’s debts so that it can operate sustainably in the future, companies can often seek to eliminate certain debts during the reorganization process as well. Even when this involves paying a portion of a debt in exchange for a release from further liability, this can be extremely beneficial in the long term. But, eliminating debts during the reorganization process can also have negative consequences. Creditors that are forced to write off a substantial portion of their debt may be unwilling to work with the company again in the future. Seeking to eliminate debts through the Chapter 11 bankruptcy process can also be more time-consuming, more adversarial and more costly than renegotiating outside of a formal bankruptcy proceeding. If there are better alternatives available, then the positive consequences of filing under Chapter 11 may not outweigh the negatives. A Formal Process with a Clear End Goal In contrast to bankruptcy alternatives such as informal debt restructuring and an assignment for the benefit of creditors (ABC), a Chapter 11 reorganization is a formal process with a clear end goal—and with... - Published: 2025-01-31 - Modified: 2025-02-18 - URL: https://elpllc.law/blog/10-common-disputes-in-chapter-11-business-bankruptcy-cases/ While many business bankruptcies under Chapter 11 go smoothly, various issues can arise during the process. When these issues arise, resolving them efficiently is usually in the best interests of all parties involved. Even so, dispute resolution proceedings will be necessary in many cases, as each party may need to gain additional insight before it is prepared to consider an amicable resolution. In these scenarios, it is essential to work closely with an experienced Miami bankruptcy litigation attorney who can assist with identifying, evaluating and pursuing a favorable outcome under the circumstances at hand. Common Debtor-Creditor Disputes During the Chapter 11 Reorganization Process What are some of the issues that can delay (and potentially threaten) successful reorganization under Chapter 11? Here are 10 examples of common disputes in Chapter 11 business bankruptcy cases: 1. Challenges to the Automatic Stay When a business files for bankruptcy under Chapter 11, the automatic stay prevents its creditors from pursuing collection. However, creditors can seek exemptions from the automatic stay in some cases. If a creditor seeks an exemption—or if a creditor improperly pursues collection while the automatic stay is in place—this can lead to a dispute early in the bankruptcy process. 2. Debt Classification Disputes When filing for bankruptcy under Chapter 11, businesses must classify their debts as either secured or unsecured. If a creditor disagrees with its classification (particularly if a creditor disagrees that its debt is unsecured), this can also trigger a dispute early in the Chapter 11 process. 3. Fraudulent Transfer Claims Allegations of executing fraudulent transfers, or fraudulent conveyances, are also a common source of disputes in Chapter 11 bankruptcy litigation. Under Section 548 of the U. S. Bankruptcy Code, the bankruptcy trustee “may avoid any transfer ... of an interest of the debtor in property ... that was made or incurred on or within 2 years before the date of the filing of the petition, if the [transfer is fraudulent]. ” What constitutes a fraudulent transfer is further defined in Sections 548(a)(1)(A) and 548(a)(1)(B). 4. Preferential Transfer Claims Preferential transfers are a common source of disputes in Chapter 11 cases as well. A transfer can be considered “preferential” (and thus subject to challenge) if it unfairly favors one or more creditors over others that have equal or superior rights. 5. Post-Petition Transfer Claims Along with pre-petition fraudulent and preferential transfers, post-petition transfers can also lead to disputes between debtors and creditors during Chapter 11 bankruptcy cases. While debtors can (and generally must) continue operating in the ordinary course while their Chapter 11 bankruptcy cases are pending, executing transactions outside of the ordinary course can lead to disputes if they are conducted without appropriate authorization. 6. Turnover Actions Creditors can pursue turnover actions to seek full satisfaction of their debts as an alternative to seeking an exemption from the automatic stay. If a turnover action is successful, this will result in the debtor (or an entity that is in debt to the debtor) being required to transfer (or “turnover”) property to the bankruptcy estate. 7. Proof of Claim Disputes Creditors seeking to participate in a business’s Chapter 11 reorganization proceeding must generally file a “proof of claim” with the bankruptcy court. If the business disputes the existence, amount or nature of a creditor’s claim, efforts to resolve this dispute may lead to litigation if an amicable resolution cannot be reached. 8. Exemption Disputes Businesses pursuing reorganization are entitled to exempt certain assets from the bankruptcy process. If a business’s creditors disagree that any of the business’s assets are eligible for exemption, this is highly likely to lead to a... - Published: 2025-01-24 - Modified: 2025-02-18 - URL: https://elpllc.law/blog/an-overview-of-the-chapter-11-bankruptcy-process-for-2025/ If you are thinking about filing to reorganize your business’s debts under Chapter 11 in 2025, getting started begins with understanding the process. Effective preparation is critical, and anticipating issues that may arise at various stages of the process can help ensure that these issues do not create roadblocks along the way. What can (and should) you expect? What can (and should) you do to prepare? Find out from an experienced Miami business bankruptcy lawyer at Edelboim Lieberman. Major Stages in the Chapter 11 Bankruptcy Process There are a variety of ways to break down the Chapter 11 bankruptcy process. For large businesses and complex bankruptcy cases, the specific steps involved can vary widely, and making informed and strategic decisions often requires assessment and reassessment of the business’s options in real time. With this in mind, here is an overview of the major stages of the process from start to finish: Stage 1: Considering Your Options The first stage of the process involves considering your options. This includes considering your options for pursuing reorganization under Chapter 11 as well as considering options outside of the formal bankruptcy process. Recognizing that every business’s circumstances are different, some examples of potential options include: A traditional Chapter 11 bankruptcy filing A pre-packaged or pre-negotiated Chapter 11 filing A “small business” filing under Subchapter V of Chapter 11 A liquidation bankruptcy under Chapter 7 An informal debt restructuring or another bankruptcy alternative Stage 2: Preparing for the Chapter 11 Bankruptcy Process If you decide that reorganizing your business’s debts under Chapter 11 is the best option, then the next stage will involve preparing for the bankruptcy process. This stage alone has several steps. One of the first steps in preparing for a Chapter 11 filing is to begin gathering all necessary documentation. Businesses filing under Chapter 11 will need to gather numerous documents to ensure that they are making informed decisions and accurate representations and to ensure that they can include all necessary supporting documentation with their bankruptcy petitions. Beyond gathering necessary documents, preparing for the Chapter 11 bankruptcy process will also involve examining the company’s outstanding liabilities, anticipating potential issues, and ensuring that the business is positioned to continue operating in a compliant manner while its bankruptcy case is pending. Addressing these considerations effectively requires working closely with an experienced Miami business bankruptcy lawyer. Stage 3: Developing a Preferred Reorganization Plan Business owners who are contemplating a Chapter 11 filing will also want to work closely with their company’s counsel to develop a preferred reorganization plan. While the business’s creditors will have a say in the structure of the business’s final reorganization plan, starting from a favorable and well-considered framework can help to facilitate an efficient and favorable resolution. When proposing reorganization plans, businesses must ensure that their plans are “feasible,” and they must ensure that their plans appropriately address the varying rights of secured and unsecured creditors. Stage 4: Filing Your Business’s Bankruptcy Petition (and Related Forms and Documentation) After completing all necessary preparations, the next stage involves preparing and filing the business’s bankruptcy petition and all related forms and documentation. Companies submitting petitions to the U. S. Bankruptcy Court under Chapter 11 may need to submit various other filings as well. These generally include (but are not limited to): A list of creditors or creditor matrix A list of the business’s 10 largest unsecured claims A summary of assets and liabilities Schedule A/B listing the company’s assets Schedules D, E/F, G and H listing creditors, contracts and any codebtors Stage 5: Meeting of Creditors A key stage in the traditional Chapter... - Published: 2025-01-17 - Modified: 2025-02-18 - URL: https://elpllc.law/blog/how-common-is-it-for-businesses-to-file-for-bankruptcy-under-chapter-11/ Numerous businesses of all sizes file for reorganization under Chapter 11 of the U. S. Bankruptcy Code every year. As a result, if you are considering taking advantage of the reorganization process to restabilize your business’s finances in 2025, you are not alone. Learn more from an experienced Miami Chapter 11 bankruptcy lawyer. Chapter 11 Bankruptcy Filings Are on the Rise According to the latest data from the U. S. Courts, Chapter 11 bankruptcy filings are on the rise. During the federal fiscal year ending September 30, 2024, the U. S. Courts reported that 22,762 businesses filed for bankruptcy, with 9,012 of these businesses filing under Chapter 11. Both of these figures represent substantial increases from prior years. Here are the statistics: 2024: 22,762 business bankruptcy filings, with 9,012 filings under Chapter 11 2023: 17,051 business bankruptcy filings, with 6,472 filings under Chapter 11 2022: 13,125 business bankruptcy filings, with 4,762 filings under Chapter 11 2021: 16,140 business bankruptcy filings, with 5,622 filings under Chapter 11 2020: 22,391 business bankruptcy filings, with 8,188 filings under Chapter 11 The high numbers in 2020 (and, to an extent, in 2021) are almost certainly attributable to the economic effects of the COVID-19 pandemic. Thus, it is notable that five years later, we saw an even higher number of business bankruptcy filings without the pandemic’s impacts on businesses. According to Reuters, “[r]ising interest rates, inflation, higher labor costs, and post-pandemic shifts in consumer spending were common factors cited by companies that filed for bankruptcy in 2024. ” Notably, Reuters also reports that: “Bankruptcy experts expect those factors to continue to drive companies over the brink [in 2025]. Several particularly hard-hit industries that struggled in 2024 will continue to experience financial distress and restructuring activity in 2025, including health care, automotive, casual dining and retail. ” It is also noteworthy that while business bankruptcy filings (including Chapter 11 filings) rose above their pandemic-era levels in 2024, the same cannot be said for non-business filings. In 2020, 590,170 individuals filed for bankruptcy. More than 100,000 less (481,350) filed for bankruptcy in 2024. The Data Already Show a Further Increase in Chapter 11 Filings in 2025 Data from BankruptcyWatch. com indicate that we are already seeing a further increase in Chapter 11 filings in 2025. According to the online platform, while 92 businesses filed for bankruptcy in the third week of 2024, 138 businesses filed for bankruptcy in the third week of 2025. Chapter 7 and Chapter 13 filings are up so far in 2025 as well. The online platform’s data also show that bankruptcy filings have increased throughout the month of January in many jurisdictions, including all three federal jurisdictions in Florida. During the third week of January, 463 businesses filed under Chapter 11 across Florida’s three federal jurisdictions, compared to 162 filings statewide the week prior. Other Notable Chapter 11 Bankruptcy Statistics BankruptcyWatch. com’s data shed light on some other notable Chapter 11 bankruptcy trends as well. For example, its data show that filings tend to spike at the end of the month and that February, March, August, and October tend to be among the busiest months for new filings. The online platform also notes that the rise in Chapter 11 filings in 2024 is likely partially attributable to an increase in related case filings, which are cases in which multiple parties file for reorganization following a related party’s initial filing. Here are some additional Chapter 11 bankruptcy statistics from the American Bankruptcy Institute (ABI): Subchapter V filings under Chapter 11 saw a 28 percent year-over-year increase in late 2024 based on the ABI’s most-recent... - Published: 2024-12-31 - Modified: 2025-01-28 - URL: https://elpllc.law/blog/2024-year-in-review-key-insights-for-south-florida-business-owners-considering-bankruptcy-in-2025/ In 2024, we published several articles on our blog focused specifically on providing information to business owners and executives who are considering a corporate bankruptcy. Here is a look back at some of the key insights our Miami bankruptcy litigation attorneys shared during the year: Understanding the Basics of a Small Business Bankruptcy Under Chapter 11 Throughout the year, we published a series of articles covering the basics of the Chapter 11 bankruptcy process. If you are unfamiliar with the process, this series will be a good place to start. To learn about the key terms in a small business bankruptcy, key provisions of Chapter 11 and other “basics” according to the U. S. Courts, you can read: Understanding the Key Terms in a Small Business Bankruptcy 10 Key Provisions in Chapter 11 of the U. S. Bankruptcy Code The “Basics” of Chapter 11 Bankruptcy—According to the U. S. Courts When is Filing Under Chapter 11 the Right Choice for a Company in Financial Distress? Reorganizing a company’s debts under Chapter 11 is a significant undertaking that requires informed decision-making. While Subchapter V has streamlined the process for most businesses, it is still critical to ensure that filing under Chapter 11 is the best path forward. To learn about some key considerations, you can read: Staving Off Chapter 11: When Is (and Isn’t) It Feasible to Avoid a Business Bankruptcy? Reorganization Plans Under Chapter 11: What Business Owners in Florida Need to Know Pros and Cons of Chapter 11 Bankruptcy for Companies in Financial Distress Alternatives to Reorganizing a Company’s Debts Under Chapter 11 When considering the pros and cons of filing under Chapter 11, it is also worth considering the other options that are available. While filing under Chapter 11 can be a viable solution for businesses facing a wide range of financial circumstances, there are a variety of potential alternatives as well. We covered some of the main alternatives in: Bankruptcy Options and Alternatives for Small Businesses in Florida. Preserving the Protections of the Automatic Stay Along with providing the opportunity to reorganize a company’s debts and remain viable as a going concern, filing for bankruptcy under Chapter 11 also provides immediate protection in the form of the “automatic stay. ” The automatic stay prevents a company’s creditors from pursuing collection while the company’s Chapter 11 case is pending. But, creditors can seek relief from the automatic stay in some cases—and, when they do, it can be essential for Chapter 11 filers to assert an effective defense. For more information, you can read: How Can Debtors Defend Against a Motion for Relief from an Automatic Stay? Avoiding Costly Mistakes During the Chapter 11 Bankruptcy Process Failing to preserve the automatic stay is just one of many mistakes that companies must be careful to avoid after filing for bankruptcy under Chapter 11. There are several mistakes that can prove extremely costly—including mistakes that can prevent companies from securing financial relief under Chapter 11. To learn about some of these mistakes, you can read: 5 Common Chapter 11 Bankruptcy Mistakes to Avoid. Strategic Considerations for Maximizing the Benefits of Reorganization Pursuing a business bankruptcy under Chapter 11 is not a one-size-fits-all proposition. There are several strategic considerations involved, and a custom-tailored approach is critical for maximizing the benefits of the process. These strategic considerations range from choosing how to approach the bankruptcy process (i. e. , whether to pursue a “cramdown”) to choosing whether to seek approval for debtor-in-possession financing. For more insights, you can read: The Chapter 11 “Cramdown:” How To Use One to Your Company’s Advantage Debtor-in-Possession Financing... - Published: 2024-12-24 - Modified: 2025-02-18 - URL: https://elpllc.law/blog/filing-a-proof-of-claim-in-a-chapter-11-bankruptcy-a-critical-step-for-protecting-creditors-rights/ When a business files for bankruptcy under Chapter 11 in South Florida, it is up to the business’s creditors to protect their right to payment. If a creditor does nothing, it can lose its ability to participate in the bankruptcy process—and it can potentially lose its ability to collect any of the amounts it is owed. In most cases, the first step toward protecting a creditor’s right to payment is to work with a Miami creditors’ rights attorney to file a Proof of Claim. What is a Proof of Claim? A Proof of Claim is a formal filing that preserves a creditor’s ability to participate in the Chapter 11 bankruptcy process. Filing a Proof of Claim is a critical first step for protecting creditors’ rights, and it is a step that will often need to be taken in conjunction with other steps based on the debtor’s filing. The Proof of Claim is a standardized filing, and creditors seeking to protect their rights must generally use Official Form 410. Preparing Official Form 410 requires information including (but not limited to): The creditor’s current name and any previous names it has used with the debtor The amount of the creditor’s claim against the debtor Whether the claim includes interest or other charges (in which case the creditor must itemize any interest fees, expenses and other charges owed) Whether the creditor acquired its claim from another party The basis for the claim (i. e. , for goods sold, services performed, leasing or lending) Whether all or part of the claim is secured Whether the claim is subject to a right of setoff Along with filing Official Form 410, creditors may need to file various attachments, supplements and other forms of supporting documentation as well. Some of the more common examples include: Attachment A (Mortgage Proof of Claim Attachment) Supplement 1 (Notice of Mortgage Payment Change) Supplement 2 (Notice of Postpetition Mortgage Fees, Expenses and Charges) Mortgages or Promissory Notes Invoices or Itemized Statements of Running Accounts Security Agreements and Other Contracts Judgments Against the Debtor As stated on Official Form 410, creditors must “leave out or redact information that is entitled to privacy on [the] form or on any attached documents. ” As also stated on Official Form 410, filing a fraudulent claim can subject individuals to up to a $500,000 fine and five years of imprisonment under federal law. This makes it critical for creditors to ensure that they prepare their Proof of Claim forms accurately, and this is one of several reasons why it is important to engage an experienced Miami creditors’ rights attorney to provide advice and representation from the earliest stages of a client’s or customer’s Chapter 11 filing. What is the Deadline for Filing a Proof of Claim in a Chapter 11 Bankruptcy Case? The deadline for filing a Proof of Claim in a Chapter 11 bankruptcy case depends on the jurisdiction in which the debtor chooses to file. In the U. S. Bankruptcy Court for the Southern District of Florida, Local Rule 3003-1 provides: “Unless otherwise ordered by the court ... the deadline for filing a proof of claim or interest required by Bankruptcy Rule 3003(c)(2) shall be 70 days after entry of the order for relief, or in a dismissed case, 70 days after entry of the order reinstating [the] case. ” Bankruptcy Rule 3003(c)(2) applies to any creditor “whose claim or interest is not scheduled—or is scheduled as disputed, contingent, or unliquidated” in the debtor’s bankruptcy filing. However, Bankruptcy Rule 3003(c)(1) makes clear that any creditor may file a claim regardless of whether its claim... - Published: 2024-12-17 - Modified: 2025-01-13 - URL: https://elpllc.law/blog/first-day-motions-in-chapter-11-bankruptcies-how-businesses-can-and-should-use-them-to-their-advantage/ When seeking to reorganize their debts under Chapter 11, businesses can leverage several aspects of the bankruptcy process to their advantage. This includes using so-called “first day motions” to seek approvals and protections prior to an unsecured creditors’ committee being formed. While unsecured creditors may ultimately be able to challenge these approvals and protections in court, making effective use of first day motions can buy distressed debtors critical time while also setting the stage for a favorable outcome from the reorganization proceeding. Learn more from an experienced Miami Chapter 11 bankruptcy lawyer at Edelboim Lieberman: Understanding First Day Motions in Chapter 11 Business Bankruptcies In Chapter 11 bankruptcy cases, filing a bankruptcy petition is just one small step in the process. Companies seeking to reorganize their debts under Chapter 11 may need to file various motions (in addition to other pleadings and forms) as well, and filing certain types of motions early in the process can offer several distinct advantages. In many cases, this means filing motions on the same day as the bankruptcy petition—or on the “first day” of the bankruptcy proceeding. These first day motions can address a variety of issues (as discussed below); and, by filing them early, debtors can secure the bankruptcy court’s approval—at least temporarily—without their unsecured creditors’ involvement. Not only can this help to streamline the bankruptcy process; but, in many cases, it can effectively limit the options that unsecured creditors have available, thus helping to maximize the benefits of going through with a bankruptcy filing. Common First Day Motions in Chapter 11 Cases How can (and should) distressed debtors use first day motions to their advantage? Here are some common examples of first day motions in business bankruptcy proceedings filed under Chapter 11: Motion for Permission to Use Cash Collateral Once a business files for bankruptcy under Chapter 11, it is not allowed to use any cash collateral in its possession without its creditors’ consent. However, Chapter 11 debtors can avoid the need to obtain creditors’ consent by obtaining permission to use cash collateral from the bankruptcy court. Seeking permission to use cash collateral—including cash on hand, accounts receivable, rent payments, inventory held for sale, and proceeds from capital asset sales—through a first day motion can preserve debtors’ access to critical funds during the early stages of the bankruptcy process. Motion for Approval of Debtor-in-Possession Financing Obtaining debtor-in-possession financing during a Chapter 11 bankruptcy case requires court approval; and, here too, seeking approval before an unsecured creditors’ committee has been formed can avoid unnecessary costs, risks and delays. If preserving the debtor’s ability to use its cash collateral isn’t enough, then filing a first day motion to secure approval for debtor-in-possession financing could be critical to the debtor’s viability as a going concern as well. Motion for Approval to Pay Employment-Related Expenses While companies can generally continue to pay payroll and other employment-related expenses during the Chapter 11 bankruptcy process, they may need to seek approval to pay wages, salaries and benefits owed at the time of filing. If this is necessary, filing a first day motion to secure approval for payment of employment-related expenses can help avoid unpaid wage claims as well as general concerns and discontentment within the debtor’s workforce. Motion for Approval to Pay Insurance Premiums Likewise, if a company has outstanding insurance premiums at the time it commences a Chapter 11 bankruptcy proceeding, it can file a first day motion to secure the court’s approval to pay its insurers. Since losing insurance coverage can present substantial risks (in addition to potentially violating contracts with customers or clients), this is... - Published: 2024-11-29 - Modified: 2024-12-26 - URL: https://elpllc.law/blog/commercial-foreclosures-in-florida-what-financially-distressed-companies-need-to-know/ If your company has received a foreclosure notice, you will need to act promptly. While your company may have options for avoiding foreclosure, it will be critical to carefully evaluate these options and choose the best to proceed under the circumstances at hand. To ensure that you are making informed and strategic decisions, we recommend speaking with a Miami commercial real estate attorney as soon as possible. When you speak with a Miami commercial real estate attorney, the attorney should walk you through the commercial foreclosure process, assess your company’s current options and risks, and advise you regarding the options your company has available. Then, once you decide how to proceed, the attorney should be able to take appropriate action on your company’s behalf. As we discuss below, this action could range from seeking to negotiate an informal workout to preparing to assert defenses in court. 5 Key Considerations for Companies Facing Commercial Foreclosure in Florida What do you need to know if your company received a foreclosure notice? Here are five key considerations for financially distressed companies that are facing a commercial foreclosure in Florida: 1. Foreclosure May Not be the Bank’s Only Option While banks will often issue a foreclosure notice to satisfy contractual notice requirements and preserve their ability to go to court if necessary, when a company is behind on its rent payments, a commercial foreclosure isn’t necessarily the bank’s only option. In this scenario, banks may have a variety of other options—and it is important for financially distressed companies to consider these possibilities as well. For example, commercial mortgage agreements will frequently allow banks to compel the assignment of rents, contracts and other assets. If your company cannot afford its mortgage payments, losing the ability to collect rent or to enforce other contractual rights to payment could make your company’s situation go from bad to worse. While it may not be possible to prevent the bank from taking this type of action if it chooses to do so, financially distressed companies will often be able to target resolutions that better serve the interests of all parties involved. 2. A Negotiated Resolution that Avoids Foreclosure May Be in Everyone’s Best Interests Given the costs involved in the commercial foreclosure process, avoiding foreclosure will often be in all parties’ best interests. With this in mind, it will be possible to target a negotiated resolution in many cases. Some examples of potential negotiated resolutions include: Modifying the terms of the mortgage to reduce the interest rate or extend the duration of the loan; Recasting the mortgage or reconstituting the terms of the loan; and, Executing a deed in lieu of foreclosure to transfer the property to the lender. Again, these are just examples. When deciding whether to consider these (or other) means of resolution, lenders and borrowers alike must carefully consider the long-term financial implications involved. If modifying the terms of the loan or recasting the mortgage is only likely to be a short-term solution, then it may not be the best path forward. 3. There Are Several Potential Defenses to Commercial Foreclosure Actions While commercial mortgages are not subject to the same foreclosure restrictions as residential mortgages, financially distressed companies will still have defenses to foreclosure in many cases. Some examples of potential defenses to commercial foreclosure actions include: Lack of Notice – If the bank failed to comply with the notice provisions in the commercial mortgage agreement, this failure may provide at least a temporary defense to foreclosure. Lack of Standing – Another defense strategy that can work in some cases is to challenge the bank’s... - Published: 2024-11-22 - Modified: 2024-12-26 - URL: https://elpllc.law/blog/what-unsecured-creditors-need-to-know-about-chapter-11-bankruptcies/ While unsecured creditors’ rights are limited in Chapter 11 bankruptcy proceedings, these creditors still can—and should—take action to protect their claims to the fullest extent possible. Although secured creditors will generally have superior rights, there are a variety of steps that unsecured creditors can potentially take to ensure that they receive at least partial (if not full) payment. Learn more from an experienced Miami creditors’ rights attorney: The Difference Between Secured and Unsecured Claims in Chapter 11 Bankruptcies Secured claims are those that are protected (or “secured”) by the availability of an underlying asset. Commercial mortgages, for example, are secured claims. If the debtor doesn’t make its mortgage payments when they are due, the bank can foreclose on the mortgaged property to mitigate its losses. While secured creditors have rights outside of the bankruptcy process, they have rights during the bankruptcy process as well—and these rights are generally superior to those of their unsecured counterparts. In a Chapter 11 case, for example, if the debtor is unable to reorganize its debts successfully, its secured creditors may be able to force liquidation of the debtor’s secured assets to collect the monies they are owed. Once a debtor files under Chapter 11, for unsecured creditors, the ideal scenario (aside from asserting a successful defense to discharge) is for the debtor to reorganize its debts and pay what it owes over time. If it doesn’t, its unsecured creditors may be left with unrecoverable losses they are forced to write off. With this in mind, it can be especially important for unsecured creditors to take a proactive approach to protecting their claims during the Chapter 11 bankruptcy process. Protecting Unsecured Creditors’ Rights During the Chapter 11 Bankruptcy Process Given that this is the case, what can—and should—unsecured creditors do when a client or customer files for bankruptcy? Here are some key steps for protecting unsecured creditors’ rights: 1. File a Proof of Claim Once a debtor files for bankruptcy under Chapter 11, unsecured creditors must be proactive to protect their claims. A key first step in this process is to file a Proof of Claim with the U. S. Bankruptcy Court. Unsecured creditors that fail to timely file a Proof of Claim may be barred from participating in the bankruptcy process or seeking to collect in the future, unless they can show that their failure to file is due to “excusable neglect. ” While filing a Proof of Claim may technically not be necessary in some Chapter 11 cases, unsecured creditors can file regardless—and there is no harm in doing so. This will help avoid any unnecessary issues, and it will provide confidence and certainty regarding unsecured creditors’ participation in the bankruptcy process going forward. 2. Object to the Debtor’s “First Day” Hearing Motions (as Warranted) When filing for bankruptcy under Chapter 11, debtors may also file a variety of motions focused on securing rights and benefits that are available under the U. S. Bankruptcy Code but that are not afforded to debtors automatically. The U. S. Bankruptcy Court will then consider these motions during a “first-day” hearing. Unsecured creditors will want to object to these motions in many cases. Some common examples of “first-day” motions include requests to immediately pay certain unsecured claims and requests for approval to seek debtor-in-possession (DIP) financing. Both of these can have significant impacts on unsecured creditors’ ability to protect their claims. While these motions are frequently granted, unsecured creditors will have valid arguments against granting them in some cases—and it will be well worth consulting with a Miami creditors’ rights attorney about the options your company has... - Published: 2024-11-15 - Modified: 2024-12-26 - URL: https://elpllc.law/blog/my-company-received-a-notice-of-bankruptcy-what-should-i-do/ If your company has received a Notice of Bankruptcy, this means that one of your clients or customers (or an affiliated entity) is seeking relief from its debt obligations in the U. S. Bankruptcy Court. If its efforts are successful, this could mean that your company will no longer be able to collect the monies it is owed. What can (and should) you do in this scenario? A Miami bankruptcy litigation attorney at Edelboim Liberman explains. Determine the Nature of the Bankruptcy Proceeding One of the first steps you will want to take is to determine the nature of the bankruptcy proceeding. This should be evident from the Notice of Bankruptcy itself. Most business bankruptcies will be one of three types: Chapter 7 – Business bankruptcies under Chapter 7 are known as “liquidation” bankruptcies. This means that the focus is generally on using the debtor’s assets to repay its creditors (to the extent possible), with the ultimate result being that the debtor goes out of business. Chapter 11 – Business bankruptcies under Chapter 11 are known as “reorganization” bankruptcies. In a Chapter 11 case, the focus is not on winding up the debtor’s operations, but instead on finding a way for the debtor to manage its currently unsustainable financial obligations going forward. Subchapter V – Subchapter V allows small businesses to reorganize their debts under Chapter 11 without incurring the costs of a traditional Chapter 11 filing. Creditors’ rights are also more limited in Subchapter V cases. These filings are becoming increasingly common. The nature of the debtor’s bankruptcy proceeding will play a key role in determining your company’s legal rights and options. A Miami bankruptcy litigation attorney at our firm can discuss these legal rights and options with you in detail. Determine the Debtor’s Commercial Relationship with Your Company After determining the nature of the bankruptcy proceeding, you will next want to determine the debtor’s commercial relationship with your company. If you recognize the debtor’s name, this will be simple and straightforward. If you don’t recognize the debtor’s name, you should not simply ignore the Notice of Bankruptcy. The debtor listed your company as a creditor for a reason, and you will want to find out why. There are several possibilities in this scenario. For example, the debtor could be a parent company of a client or customer, or a client or customer may have been recently acquired by another business. You could also be familiar with the debtor’s trade name but not its formal legal name. Once you identify the debtor, then you can determine the nature of its debt and how much it owes your company. Make Sure You Know the Deadlines that Apply Debtors and creditors both have deadlines in Chapter 7, Chapter 11 and Subchapter V bankruptcy cases—and the first deadlines can arrive quickly. With this in mind, you will want to make sure you know the deadlines that apply to your company. If you miss any of these deadlines, you could lose the ability to protect your company’s interests in the bankruptcy proceeding. Make Sure You Don’t Violate the Automatic Stay Filing for bankruptcy affords several benefits to debtors. One of these benefits is the imposition of an “automatic stay. ” While an automatic stay is in effect, the debtor’s creditors are prohibited from pursuing collection activities unless they qualify for an exception. Since violating an automatic stay in a Chapter 7, Chapter 11 and Subchapter V bankruptcy case can have serious consequences, you will need to be careful to make sure your company complies. A Miami bankruptcy litigation attorney at our firm can... - Published: 2024-10-31 - Modified: 2024-12-26 - URL: https://elpllc.law/blog/what-not-to-do-if-your-business-has-a-breach-of-contract-claim-in-florida/ In a recent article, we discussed seven steps to take if your business has (or may have) a breach of contract claim in Florida. We covered important steps such as making sure the failure at issue truly constitutes a breach of contract, as well as determining whether the dispute is subject to mandatory mediation or arbitration. But, when facing a contract dispute, knowing what to do and knowing what not to do are equally important. With this in mind, in this article, a Miami breach of contract lawyer at Edelboim Lieberman explains seven potentially costly mistakes that can have unintended (and adverse) consequences. 7 Mistakes to Avoid When Facing a Contract Dispute in Florida What should you not do if your business has a breach of contract claim in Florida? Here are seven examples (among many others) of mistakes that business owners and executives must be careful to avoid: Mistake #1: Waiting to Take Appropriate Legal Action While it is important not to rush into pursuing legal action before you have a clear understanding of your business’s legal rights, it is equally important not to wait to take appropriate legal action when necessary. If a breach of contract is causing ongoing harm to your business, you should engage a Miami breach of contract lawyer to seek relief immediately. Not only can acting quickly improve your chances of securing a favorable outcome, but it can also help you avoid allegations of “failure to mitigate. ” Other mitigation measures may be necessary as well; and, here too, an experienced lawyer can help you do what is required to protect your business’s legal rights. Mistake #2: Assuming that You Have a Clear Understanding of Your Business’s Legal Rights As we discussed in our previous article, it is critical to make sure that you are truly dealing with a breach of contract. If you attempt to take legal action when it is unwarranted, not only will this result in a waste of resources, but it could also threaten a valuable business relationship. In this same vein, it is important not to assume that you have a clear understanding of your business’s legal rights. Commercial contracts are often exceedingly complex, and they don’t always say what business owners and executives expect them to say. Just as you need to avoid taking unwarranted legal action, you also need to make sure you do not overlook the legal options that your business has available. Mistake #3: Retaliating Against the Breach As a general rule, retaliating against a breach of contract is inadvisable. Not only is it more likely to lead to a contentious (and potentially costly) dispute, but it can have other adverse consequences as well. Generally speaking, one breach does not excuse another. If a breach justifies non-performance, then non-performance is an appropriate remedy, not a retaliatory breach. However, if a breach does not justify non-performance, then a retaliatory breach could lead to a counterclaim that entitles the other party to seek remedies in litigation or alternative dispute resolution (ADR). Mistake #4: Publicizing the Breach in the Business Community or On Social Media Along with avoiding attempts at retaliation, business owners and executives should also avoid publicizing the breach in the business community or on social media. Although this can be tempting, it can also have unintended consequences. While it may make sense to discuss your business’s dispute publicly in the future, now most likely isn’t the best time. Mistake #5: Pursuing ADR if Your Business is Entitled to Injunctive Relief Commercial contracts frequently include mandatory ADR clauses that require the parties to resolve disputes through... - Published: 2024-10-24 - Modified: 2024-11-19 - URL: https://elpllc.law/blog/what-documents-are-needed-for-a-chapter-11-business-bankruptcy-in-florida/ Filing for bankruptcy under Chapter 11 is a document-intensive process. Companies contemplating bankruptcy need to gather several forms of documentation to prepare, and, to start the process, they must file a variety of forms and supporting documentation with the bankruptcy court. As a result, careful planning is essential, and company executives should work closely with an experienced Miami bankruptcy litigation attorney to ensure that they are doing everything necessary to ensure that the process is as efficient and low-risk as possible. While every company’s reasons for pursuing reorganization under Chapter 11 are unique, many aspects of the process are the same regardless of the business reasoning involved. These include the need to collect relevant financial records and the need to ensure an accurate and comprehensive filing. With this in mind, here is an overview of the documents needed to pursue a Chapter 11 business bankruptcy in Florida: Documents to Be Collected Before Filing for Bankruptcy Under Chapter 11 Collecting relevant financial documents in anticipation of a Chapter 11 filing serves two fundamental and equally important purposes: (i) it allows for informed decision-making, and (ii) it ensures that the company’s legal counsel will have all of the information needed to prepare a compliant filing. While the specific records a company has available will vary case-by-case, some examples of documents that will typically be necessary include: Bank account and brokerage account statements Cryptocurrency account statements Accounts payable (AP) and accounts receivable (AR) Income statement (statement of operations or profit and loss (P&L) statement) Balance sheet Financial statements (including cash flow statement) Income tax returns and other state and federal tax filings Real estate deeds and loan documents Vehicle titles and loan documents Real estate and automotive leases Vendor contacts Commercial loan agreements Subscription agreements and other equity financing documentation Corporate formation and governance documents Again, these are just some of the most common examples. When you engage a Miami bankruptcy litigation attorney to assist with your company’s Chapter 11 filing, your company’s attorney will be able to assist with identifying all relevant pre-existing financial documentation. Then, your company’s attorney will be able to review this documentation to assess not only the potential benefits of reorganizing your company’s debts under Chapter 11, but also the viability of potential bankruptcy alternatives. Documents to Be Filed with the Bankruptcy Court Once the decision is made to move forward with pursuing reorganization under Chapter 11, the next step is to begin the process of preparing all of the documents that will need to be filed with the bankruptcy court. While the specific filing requirements can vary under Subchapter V and certain other provisions of the U. S. Bankruptcy Code, initiating a Chapter 11 proceeding generally requires: Voluntary Bankruptcy Petition (Form 201) – The voluntary bankruptcy petition is the primary form required to initiate a Chapter 11 filing, and it represents the company’s formal request for relief under Chapter 11 of the U. S. Bankruptcy Code. List of Creditors (or Creditor Matrix) – Companies seeking relief under Chapter 11 must file a list of creditors (also known as a creditor matrix) with their voluntary bankruptcy petition. This list must include the names and addresses of all of the company’s creditors, and it must be formatted in accordance with the relevant bankruptcy court’s requirements. List of 20 Largest Unsecured Claims (Form 204) – Separate from their creditor matrix, companies seeking relief under Chapter 11 must also file a list of their creditors with the 20 largest unsecured claims. This does not include company insiders (i. e. , owners and executives). Attachment to Voluntary Petition (Form 201A) – Companies... - Published: 2024-10-17 - Modified: 2024-11-19 - URL: https://elpllc.law/blog/when-should-a-company-file-bankrupt/ On this blog we cover a lot of topics related to business bankruptcies. In the past year alone, we’ve covered topics ranging from the debtor-in-possession rules and bankruptcy “cramdowns” to considerations for restoring companies’ financial standing post-bankruptcy. But, one topic we haven’t really covered is: When should financially distressed companies start the bankruptcy process? To be clear, there is no single “right” answer to this question. Deciding when to file for bankruptcy (and whether to file at all) requires a careful analysis conducted by an experienced Miami Chapter 11 bankruptcy lawyer. But, there are some general considerations involved, and carefully examining these considerations can help business owners start to make informed decisions about how and when to move forward. 5 Key Considerations for Deciding When to File for Bankruptcy Protection So, when should a company file for bankruptcy protection? Some of they key considerations include: 1. Bankruptcy vs. Bankruptcy Alternatives While filing for bankruptcy protection under Chapter 11 is a viable solution for struggling businesses in many cases, it isn’t necessarily the only solution available. Before initiating the bankruptcy process, it will be worth evaluating other potential options—which may include renegotiating with vendors or seeking an additional capital infusion, among others. If you’ve considered these other options and filing under Chapter 11 still makes sense, then it may be time to move forward. 2. Having a Plan to Maintain Solvency Post-Bankruptcy Filing bankrupt under Chapter 11 involves reorganizing the company’s debts so that it can continue operating (the primary bankruptcy alternative is filing under Chapter 7, which involves liquidating the business’s assets and typically ends with winding up its final affairs). With this in mind, it is critical for company owners and executives to be confident that they have a plan for maintaining solvency post-bankruptcy. If reorganizing the company’s debts isn’t likely to solve its financial problems, then filing may not be worth it. Conversely, if reorganization will free up the capital the company needs to operate profitably, then it may make sense to start the process immediately. 3. Devoting the Necessary Time and Resources to the Bankruptcy Process While company owners and executives can—and should—rely on experienced legal counsel to guide them through the business bankruptcy process, going through the process still requires company time and resources. If you need time to get ready for the process, taking this time (and using it as efficiently as possible) could be preferable to filing right away. 4. If Filing Makes Sense, There is Generally No Reason to Wait With that said, once you decide that filing makes sense, there is generally no reason to wait. There generally aren’t material benefits to filing before or after the end of the year, and unnecessarily delaying a bankruptcy filing rarely, if ever, has benefits in other circumstances. 5. Waiting to File Can Have Adverse Consequences in Some Cases On the other hand, waiting to file can have adverse consequences in some cases. For example, waiting can give creditors more opportunities to allege fraudulent conveyances and assert other defenses to discharge. Waiting can also give creditors the opportunity to pursue foreclosure and other means of collection before the bankruptcy process begins. Thus, when it comes to the question of, “When should a company file for bankruptcy? ” the answer is generally, “As soon as the company is ready. ” Starting the Business Bankruptcy Process If your company is ready to start the business bankruptcy process, what are your first steps? Initiating a business bankruptcy under Chapter 11 generally involves: Gathering All Necessary Financial Documentation – One of the first steps toward pursuing a Chapter 11... - Published: 2024-09-30 - Modified: 2024-10-14 - URL: https://elpllc.law/blog/restoring-a-companys-financial-standing-post-chapter-11-bankruptcy/ The purpose of going through a Chapter 11 bankruptcy is to get a company back on solid financial ground. Rather than liquidating the company’s assets (as in a Chapter 7 bankruptcy), the focus of a Chapter 11 bankruptcy is on reorganizing the company’s debts so that it can remain viable well into the future. However, maximizing a company’s chances of success post-bankruptcy requires an informed and strategic approach, and this makes it essential to work with an experienced Miami Chapter 11 bankruptcy lawyer who can help you address all pertinent legal, financial, and practical considerations. Strategic Planning Considerations for a Chapter 11 Business Bankruptcy Let’s say you are considering a business bankruptcy filing under Chapter 11. What are some of the key considerations you need to address? Here are seven strategic planning considerations for both (i) maximizing the benefits of the Chapter 11 bankruptcy process and (ii) maximizing a business’s chances of long-term success post-bankruptcy: 1. Make Sure Filing Under Chapter 11 is Your Company’s Best Option First and foremost, you need to be confident that filing under Chapter 11 is your company’s best option. While filing under Chapter 7 generally isn’t an option for companies seeking to stay in business, there are alternatives to bankruptcy that will prove more beneficial in some cases. When you engage a Miami Chapter 11 bankruptcy lawyer, your lawyer should not only advise you regarding the benefits and limitations of reorganizing your company’s debts under Chapter 11 but also advise you regarding alternatives such as debt restructuring and seeking an infusion of additional capital. 2. Carefully Evaluate Your Company’s Assets and Liabilities In this same vein, it is important to carefully evaluate your company’s assets and liabilities. Does your company have assets that it no longer needs—and that could be sold to free up capital or pay down outstanding liabilities? Does your company have ongoing payment obligations that are unnecessary to its core operations and that it may be possible to wind down? Even if these types of options do not eliminate the need for a Chapter 11 filing, taking steps such as these can reduce the scope of the bankruptcy process while providing the same (if not greater) financial benefits. 3. Make Sure You Have a Clear Understanding of Creditors’ Rights Under Chapter 11 Before initiating a Chapter 11 business bankruptcy, it is also critical to ensure that you have a clear understanding of your company’s creditors’ rights under Chapter 11. Broadly speaking, for federal bankruptcy purposes, creditors will fall into one of two categories—secured or unsecured. Secured and unsecured creditors hold very different positions in Chapter 11 bankruptcy proceedings (particularly small business bankruptcy proceedings under Subchapter V), so knowing each creditor’s status will be critical for making sound decisions. Considering creditor relationships at the individual level can be important as well. If your company has key lenders or key vendors, doing everything you can to keep these entities happy should be a priority. With that said, companies going through the bankruptcy process must be careful not to unduly favor certain creditors over others. Not only can doing so lead to acrimony during the bankruptcy process, but it can potentially lead to litigation outside of the company’s Chapter 11 bankruptcy proceedings as well. 4. Consider Relevant Market Factors and Forces When considering a Chapter 11 filing, it is important not to focus solely on the potential effects (both positive and negative) of reorganizing your company’s debts. Relevant market factors and forces require careful consideration as well. Are your company’s finances struggling because of new competition, and if so, do you have a plan... - Published: 2024-09-23 - Modified: 2024-10-14 - URL: https://elpllc.law/blog/debtor-in-possession-financing-and-chapter-11-what-florida-business-owners-need-to-know/ Filing for bankruptcy under Chapter 11 of the U. S. Bankruptcy Code provides a way for companies to reorganize their debts and overcome short-term financial strain. But, for some businesses, the Chapter 11 bankruptcy process itself can prove prohibitively expensive. While this is less common today due to the enactment of Subchapter V (which provides streamlined bankruptcy procedures for small businesses), seeking financing for the bankruptcy process will still be necessary in some cases. This involves working closely with a Chapter 11 bankruptcy lawyer to seek debtor-in-possession financing. What is Debtor-in-Possession Financing? In most cases, companies that file for bankruptcy under Chapter 11 are classified as debtors in possession. This means that they remain in possession of their assets during the bankruptcy process, and they remain able to use these assets in the ordinary course of their business operations. Debtor-in-possession financing is simply financing that is extended to a company during a Chapter 11 bankruptcy. If a company could benefit from going through a Chapter 11 bankruptcy but does not have the resources needed to fund the bankruptcy process, debtor-in-possession financing serves as a short-term bridge that allows the company to reorganize its debts and move toward financial stability. How Does Debtor-in-Possession Financing Work? So, how does debtor-in-possession financing work? Typically, the business will secure debtor-in-possession financing before initiating its Chapter 11 bankruptcy proceeding. That way, the business’s owners will know that they have the resources they need to navigate the bankruptcy process without foregoing any potential benefits or opportunities due to lack of funding. Debtor-in-possession financing can be either secured or unsecured, and, in many cases, it will be unsecured. While the primary purpose of debtor-in-possession financing is to facilitate a Chapter 11 filing, the business may also be able to use a portion of its loan for ordinary operating expenses if necessary. However, unsecured debtor-in-possession financing generally comes at a cost (in the form of an increased interest rate), so business owners will want to be careful to ensure that they do not take on more additional debt than they need to get through the bankruptcy process. If no lenders are willing to extend unsecured debtor-in-possession financing, then a secured short-term loan may be necessary. Alternatively, it may be possible to secure protections that convince a lender to extend unsecured financing, such as priority over unsecured debts. In all cases, debtor-in-possession loan payment obligations will generally be classified as an “administrative expense,” which means they will be prioritized under the debtor’s Chapter 11 repayment plan. When is Debtor-in-Possession Financing a Good Option? Debtor-in-possession financing is a good option for companies that can benefit from the Chapter 11 reorganization process but that cannot fund the process themselves. While it is a niche market, the market for debtor-in-possession financing is well-established, and companies will generally be able to find a lender that is willing to work with them. With that said, the terms that lenders are willing to extend vary case-by-case, and it will be well worth shopping around in most circumstances. Once you engage a Chapter 11 bankruptcy lawyer, your lawyer may be able to assist with finding a lender that will work with your business as well. Of course, for debtor-in-possession financing to be worth it, this means that going through a Chapter 11 bankruptcy needs to be worth it as well. If you cannot see a viable path toward profitability, then reorganizing your company’s debts under Chapter 11 may simply delay the inevitable—and this may not be the best approach. Conversely, if you have better alternatives to a Chapter 11 filing, then you should avoid incurring the... - Published: 2024-09-16 - Modified: 2024-10-14 - URL: https://elpllc.law/blog/partition-actions-involving-florida-real-estate-what-co-owners-need-to-know/ If you co-own real estate with someone else in Florida, disputes regarding the property can present a variety of challenges. The same is true if you have a disagreement unrelated to the property and decide it is best if you go your separate ways. In both of these scenarios, the best path forward will often be to initiate a partition action with the help of an experienced Miami real estate attorney. What is a Partition Action? A partition action is a formal legal proceeding that is used to divide shared interests in a single piece of real estate. While co-owners can go their separate ways amicably when they are on the same page, a partition action provides a path forward when this isn’t the case. There are three types of partition actions under Florida law: Partition By Physical Division – A partition by physical division results in each co-owner independently owning a portion of the previously shared property. The property itself is divided, and then each co-owner receives a 100 percent interest in an undivided portion. However, partition by division is rarely used. This is because (i) equally dividing a piece of real estate can prove challenging (if not impossible), and (ii) dividing one parcel into two can diminish the overall value of the property, which is something that it is generally in all parties’ best interests to avoid. Partition By Sale – A partition by sale involves selling the co-owned property and then dividing the sale proceeds. This is the most common type of partition action by far. It provides for the cleanest separation, and it ensures (or at least should ensure) that the co-owners are getting fair market value for the property. Partition by Appraisal – A partition by appraisal is similar to a partition by sale, except instead of selling the entire property to a third party, one co-owner buys the other co-owner’s share. After one co-owner initiates the partition action, the court orders an appraisal, and then this appraisal is used to set the purchase price. To be clear, these options are also available without going through a formal legal proceeding. If co-owners of real estate agree that the property should be divided or sold, or if they agree that one co-owner should sell to the other, they are free to do so. A partition action simply provides a mechanism for forcing one of these outcomes when co-owners disagree about how to move forward. When Does a Partition Action Make Sense? So, when does a partition action make sense? As we have alluded to above, a partition action generally makes sense when co-owners of a piece of real estate cannot find a mutually agreeable path forward. In most cases, this involves one of the following scenarios: The co-owners disagree on whether the property should be sold; The co-owners disagree on the fair market value of the property or, The co-owners simply aren’t able to work together to find a solution that works for both of them. Partition actions are common in disputes among business partners. The need for a partition action may also arise in connection with a divorce or separation or during (or after) the administration of a deceased family member’s estate. Regardless of the circumstances involved, pursuing a partition action in Florida involves the same legal processes and procedures. How Do You Pursue a Partition Action? Pursuing a partition action starts with filing a lawsuit in the appropriate court. Under Florida law, a lawsuit to initiate a partition action must be filed in the county where the property in question is located. In most... - Published: 2024-08-30 - Modified: 2024-09-18 - URL: https://elpllc.law/blog/what-to-do-if-your-business-has-a-breach-of-contract-claim-in-florida/ If your business is dealing with a breach of contract in Florida, you need to make informed and strategic decisions about what to do next. There are several important factors to consider as you decide how to proceed, and while going to court might be the next step, there may be other steps your company needs to take as well. Find out more from an experienced Miami breach of contract lawyer at Edelboim Lieberman: 7 Steps to Take if Your Business Has a Breach of Contract Claim When dealing with a breach of contract, making informed and strategic decisions starts with ensuring that you have a clear understanding of the relevant facts and your company’s legal rights. With this in mind, the steps business owners and executives need to take in this situation include: Step #1: Make Sure It Is Truly a Breach of Contract The first step you need to take is to make sure you are truly dealing with a breach of contract. If you haven’t done so already, you should carefully re-read the relevant contract to ensure that you are dealing with a breach and not simply a failure to meet expectations. Ambiguities about contracting parties’ responsibilities can raise questions about whether a particular act or omission constitutes a breach as well. To be clear, while it is important not to assume that a counterparty has breached a contract with your company, it is equally important not to assume that a counterparty is contractually compliant. If you have questions about whether a particular act or omission constitutes a breach, you should speak with a Miami breach of contract lawyer promptly. Step #2: Determine if Your Company is Still Obligated to Perform Another important step to take as soon as possible is to determine if your company is still obligated to perform. One breach doesn’t necessarily justify another; and, even if your company is entitled not to perform, you may need to take formal action—such as issuing a formal notice of default or termination—rather than ignoring the terms to which your company has agreed. If your company needs to pursue a breach of contract claim, you do not want to put your company in the position of needing to defend against a breach of its own. Step #3: See if Any Remedy Restrictions Apply Commercial contracts frequently include provisions that limit the remedies that are available for breaches, as this limits the parties’ liability exposure—thereby making entering into the contract commercially viable. To make informed and strategic decisions about how to proceed, you will need to be aware of any contract provisions that limit the remedies that are available to your company. Common provisions include damages caps and restrictions on the types of remedies that are available. Additionally, some commercial contracts include remedy provisions that are specific to certain types of breaches. For example, a product-based contract may stipulate that a breach of an express warranty entitles the purchaser to a refund of the purchase price but does not otherwise give rise to legal action. If the remedies available for a breach of contract are limited, then pursuing a claim in litigation or alternative dispute resolution (ADR) may not be viable. Step #4: See if Your Company Needs to File for ADR Along with examining the “boilerplate” provisions of the contract for any restrictions on remedies, you should also review these provisions to determine if your company needs to pursue ADR—whether mediation, arbitration or both. Mandatory ADR provisions are common in commercial contracts as well, and, in the commercial context, these provisions are generally enforceable under Florida law.... - Published: 2024-08-23 - Modified: 2024-09-18 - URL: https://elpllc.law/blog/small-business-bankruptcy-what-you-want-to-know-but-dont-want-to-ask/ As a small business owner, it can be difficult to ask questions about filing for bankruptcy. In some cases, you might not know what to ask. In others, you might feel uncomfortable showing how little you know about the process. Of course, you aren’t a Miami bankruptcy litigation attorney, so being unfamiliar with the bankruptcy process is completely normal. In this article, we’re covering common questions about small business bankruptcies. Hopefully, the information in this article will answer some of your questions and help you feel more confident about your next steps. With that said, there is no substitute for legal advice (and there are no dumb questions), and we strongly encourage you to speak with a Miami bankruptcy litigation attorney at Edelboim Liberman if you need to know more about pursuing a reorganization or liquidation. What is a “Reorganization” in Bankruptcy? A “reorganization” is a type of bankruptcy under Chapter 11 focused on keeping the business afloat. Rather than selling off the company’s assets and winding it down, a reorganization bankruptcy focuses on consolidating the business’s debts and developing a payment plan that is both manageable and sustainable long-term. What is “long-term”? The answer to this question varies but is typically in the range of one to five years. In any case, at the end of the process, the business will be out from under its unmanageable debt load and will be able to move forward with newfound financial stability. What is a “Liquidation” in Bankruptcy? While a reorganization bankruptcy under Chapter 11 focuses on keeping the business afloat, a “liquidation” bankruptcy under Chapter 7 focuses on bringing the business to a close. As a result, this is not a preferable option for many small business owners. But liquidating doesn’t necessarily mean selling everything, and if you are ready to move on (or try again), then filing under Chapter 7 could provide the financial freedom you need. With that said, going through a liquidation will have implications for your future business endeavors—at least for the next several years. Thus, before you decide to pursue a liquidation under Chapter 7, it will be well worth speaking with a Miami bankruptcy litigation attorney about the other options you have available. Is There a Special Type of Small Business Bankruptcy? Yes, there is a special type of small business bankruptcy. There are actually two types of small business bankruptcies, though today the most popular option by far is reorganizing under Subchapter V. Subchapter V is part of Chapter 11. If your small business is eligible to file under Subchapter V (and most small businesses are), you can reorganize your company’s debts without meeting all of the stringent requirements associated with a traditional Chapter 11 filing. The reorganization process under Subchapter V is significantly more streamlined—and significantly less costly—and, as a result, it is a viable option for many struggling small businesses in Florida. Can a Small Business File for Bankruptcy if It is Still Operating? Yes, you can file for bankruptcy if your small business is still operating. It is a common misconception that a business needs to be failing before its owners can consider filing under Chapter 11. The purpose of filing under Chapter 11 (or Subchapter V) is to save the business—and if your small business is struggling financially, the sooner you take action, the better. Is It Ever Too Late to File for Bankruptcy as a Small Business? Technically, it is never too late to file for bankruptcy as a small business. However, if you wait until your company is facing foreclosure and lawsuits from its creditors, then filing... - Published: 2024-08-16 - Modified: 2024-09-18 - URL: https://elpllc.law/blog/the-chapter-11-cramdown-how-to-use-one-to-your-companys-advantage/ In a Chapter 11 business bankruptcy, a “cramdown” allows the business to secure court approval for its reorganization plan without its creditors being on board. This can be critical in some cases. While creditors will generally be willing to consider reasonable proposals for reorganizing a business’s debts during the Chapter 11 bankruptcy process, it isn’t always possible to find a path forward that adequately serves the interests of all parties involved. So, when can (and should) you pursue a cramdown? An experienced Miami Chapter 11 bankruptcy lawyer explains: When to Consider a Cramdown in a Chapter 11 Bankruptcy While the U. S. Bankruptcy Code doesn’t explicitly use the term “cramdown,” it includes provisions that allow for cramdowns in appropriate cases. Specifically, 11 U. S. C. Section 1129(b)(1) provides: “[I]f all of the applicable requirements of subsection (a) of this section other than paragraph (8) are met with respect to a plan, the court, on request of the proponent of the plan, shall confirm the plan notwithstanding the requirements of such paragraph if the plan does not discriminate unfairly, and is fair and equitable, with respect to each class of claims or interests that is impaired under, and has not accepted, the plan. ” Subsection (a) of Section 1129 outlines the conditions for securing confirmation of a proposed reorganization plan in a Chapter 11 business bankruptcy, and paragraph (8) requires that each class of creditors affected by the plan either “has accepted the plan” or “is not impaired under the plan. ” Thus, a “cramdown” under Section 1129(b)(1) involves securing confirmation even though the business’s creditors have objected (or have grounds to object) to the plan as proposed. One of the requirements for pursuing a cramdown under Section 1129(b)(1) is that the business’s reorganization plan must be “fair and equitable. ” Section 1129(b)(2) goes on to define these terms. Under Section 1129(b)(2), the standards for “fair and equitable” treatment differ for secured and unsecured creditors. Meeting the relevant standard with respect to each creditor entitled to participate in a business’s Chapter 11 bankruptcy proceeding is essential for pursuing a cramdown successfully: “Fair and Equitable” Treatment of Secured Creditors – To be “fair and equitable” to secured creditors, a cramdown must allow those that do not approve of the plan to retain their liens and receive deferred cash payments that are at least equal in value to their collateral, or the collateral must be sold with their liens attaching to the proceeds. As an alternative, secured creditors may also receive the “indubitable equivalent” of the value of their claims—typically, what they would have received under their original loan agreements. “Fair and Equitable” Treatment of Unsecured Creditors – A cramdown will be deemed “fair and equitable” to unsecured creditors if either: “(i) the plan provides that each holder of a claim of such class receive or retain on account of such claim property of a value, as of the effective date of the plan, equal to the allowed amount of such claim; or (ii) the holder of any claim or interest that is junior to the claims of such class will not receive or retain under the plan on account of such junior claim or interest any property ... . ” Determining whether a cramdown is a viable solution to a challenging Chapter 11 bankruptcy isn’t always (or often) easy. Understanding individual creditors’ rights can be challenging; and, by their nature, attempted cramdowns turn contentious in many cases. Even so, a cramdown will often be the most cost-effective path forward; and, by working closely with an experienced Chapter 11 bankruptcy lawyer, business owners... - Published: 2024-07-31 - Modified: 2024-08-26 - URL: https://elpllc.law/blog/what-types-of-debts-are-eligible-for-discharge-in-a-chapter-11-bankruptcy/ While the primary purpose of a Chapter 11 bankruptcy is to reduce the business’ monthly debt load through a reorganized payment plan, businesses can use Chapter 11 filings to eliminate (or “discharge”) debts during the process as well. Discharging debts during the Chapter 11 bankruptcy process is fairly common, and when considering a reorganization, it is important to consider which debts your business might be better off eliminating entirely. An experienced Miami Chapter 11 bankruptcy lawyer can help you make informed and strategic decisions, and speaking with a lawyer is the first step in the process. Discharge also occurs at the end of a Chapter 11 filer’s reorganization plan. If a business timely makes all of its payments on time, then any remaining outstanding liability will be discharged. But, this assumes that all of the business’ debts are dischargeable. So, what types of debts are eligible for discharge in a Chapter 11 bankruptcy? What Debts Are Eligible for Discharge Under Chapter 11? Unlike consumer bankruptcy proceedings, there are few broad exceptions to dischargeability in business bankruptcy proceedings under Chapter 11. Instead, Chapter 11 starts with the proposition that business debts are generally dischargeable, and then it establishes exceptions to dischargeability that are largely circumstantial rather than being specific to certain types of debts. As a result, the following common types of business debts (among others) are all generally dischargeable under Chapter 11: Back rent under commercial leases Business credit card debt Business lines of credit Business loans Commercial loans Commercial or industrial real estate financing Commercial vehicle financing Credit extended by the business’ vendors and suppliers Equipment financing Other secured and unsecured business debts In most cases, these categories will cover the substantial majority (if not all) of the debts that a business needs to reorganize and/or discharge in order to regain its financial footing. As a result, filing for bankruptcy under Chapter 11 is a viable solution for businesses in a wide range of scenarios, and it is well worth talking to a Miami Chapter 11 bankruptcy lawyer if you have concerns about your business’ financial stability. What Debts Aren’t Eligible for Discharge Under Chapter 11? While most types of business debts are generally eligible for discharge under Chapter 11, there are some exceptions. As we mentioned above, these exceptions are largely circumstantial—though certain types of debts (i. e. , certain debts owed to the federal government) are not eligible for discharge under any circumstances. With this in mind, some examples of business debts that may not be eligible for discharge in a Chapter 11 bankruptcy include: Debts that the business fails to list on its Chapter 11 bankruptcy petition Debts owed for loans or other credit obtained through false pretenses Debts owed for loans or other credit obtained through fraud Debts owed for funds obtained by embezzlement or larceny Debts owed for “willful and malicious” injury to a third party or third-party property Additionally, even if none of these dischargeability exceptions apply, creditors can still have defenses to discharge in some cases. For example, a creditor may be entitled to pursue full collection of its debt based on: A fraudulent conveyance Destruction of relevant records Falsification of relevant records Making false statements under oath during the Chapter 11 process Failure or refusal to comply with a court order during the Chapter 11 process As you can see from these lists, exceptions to dischargeability and successful defenses to discharge in Chapter 11 bankruptcy proceedings are relatively rare. With that said, business owners should not simply assume that their business’ debts will be eligible for discharge. As we mentioned above,... - Published: 2024-07-24 - Modified: 2024-08-26 - URL: https://elpllc.law/blog/remedies-in-florida-partnership-disputes/ Last month, we discussed some key considerations for resolving partnership disputes through mediation or arbitration. In that article, we covered some of the benefits and limitations of each of these forms of alternative dispute resolution (ADR), and we also covered some circumstances in which ADR may not be the best option for resolving a dispute between partners. This month, we’re taking a look at the remedies that a Miami partnership dispute attorney can help partners pursue—whether in ADR or in litigation. Practical Considerations for Approaching Partnership Disputes in Florida Before we discuss the remedies that are available in Florida partnership disputes, it is important to emphasize that, generally speaking, partners have a substantial amount of flexibility when it comes to determining both (i) what remedies they want to pursue and (ii) how they want to pursue them. A major factor guiding these decisions is whether they want the partnership to remain together. If the primary goal is to preserve the partnership and continue working together, this presents a very different set of considerations than a scenario in which at least one partner is prepared to part ways. In the former scenario, the focus will generally be on amicable dispute resolution—which will most likely mean pursuing mediation if the partners are unable to reach an amicable resolution on their own. In the latter scenario, arbitration or litigation is much more likely; and, rather than looking for a way to come to terms, the partners will each be focused on protecting their own independent best interests. This is where potential remedies come into play. Potential Remedies in Disputes Between Partners Let’s say you are prepared to part ways. Or, maybe your partner is prepared to part ways, and there simply isn’t a viable solution for keeping your partnership intact. In this scenario, what remedies can (and should) you seek in your partnership dispute? Generally speaking, these are the options you have available: 1. Injunctive Relief When necessary, partners can seek injunctive relief to prevent conduct that violates their contractual rights or that causes harm to their business. For example, if another partner is using the partnership’s trade secrets or customer list to establish a competing business, this is a scenario in which injunctive relief may be appropriate. Importantly, partners can seek injunctive relief on an emergency basis when warranted. If another partner’s conduct threatens to cause (or is actively causing) immediate and irreparable damage, this is a scenario in which an emergency request for temporary injunctive relief may be appropriate. An order for temporary injunctive relief will prohibit (or “enjoin”) the offending conduct while the partnership dispute is pending, and then the judge will issue a final order (if warranted) at the end of the proceedings. This final order may mirror the original order for temporary injunctive relief, or it may contain additional or alternate prohibitions. As a corollary to injunctive relief, in some cases, a request for specific performance may be warranted as well. Specific performance is essentially the opposite of injunctive relief. Rather than prohibiting a partner from engaging in certain conduct, an order for specific performance requires the partner to take a certain action—which is usually an action that the partner has already agreed to take. For example, if a partner is refusing to make an additional capital contribution, seeking specific performance as a remedy to compel the capital contribution may be a viable solution. 2. Monetary Damages A second option is to seek monetary damages. Monetary damages are a common remedy in partnership disputes, and they can be based on either (i) a partner’s (or the partnership’s) actual... - Published: 2024-07-17 - Modified: 2024-08-03 - URL: https://elpllc.law/blog/bankruptcy-options-and-alternatives-for-small-businesses-in-florida/ From high interest rates to the lingering effects of the COVID-19 pandemic, many small businesses in Florida find themselves struggling for a variety of reasons. If your small business is struggling, it may be worth considering bankruptcy and its alternatives. Small business owners have a variety of options available, and an experienced Miami bankruptcy litigation attorney can help you choose the option that makes the most sense based on your business’s financial circumstances. Not only are there a variety of reasons why small business owners might need to consider bankruptcy and its alternatives, but the options that are available also offer a variety of potential benefits. Just like any other business matter, informed decision-making is key. If your Florida small business needs relief from financial strain, taking appropriate action could not only provide the relief your business needs, but it could serve a number of other beneficial purposes as well. 7 Bankruptcy Options and Alternatives for Small Businesses in Florida What are your options if your small business is struggling? Here are seven bankruptcy options and alternatives for small businesses in Florida: 1. “Traditional” Chapter 11 Bankruptcy One option is to file for a “traditional” Chapter 11 bankruptcy. Chapter 11 of the U. S. Bankruptcy Code allows businesses to reorganize their debts so that they can afford to make their payments as they come due. In many cases, going through a Chapter 11 bankruptcy will involve eliminating (or “discharging”) certain debts as well. The purpose of a Chapter 11 bankruptcy is not to wind up a small business’s affairs. Rather, reorganizing a business’s debts under Chapter 11 allows the business to continue operating without going into default—and ultimately to regain its financial footing over time. To pursue a Chapter 11 bankruptcy, a small business must be capable of making payments under its reorganized payment plan—and this is one of the first considerations you will want to address with your Miami bankruptcy litigation attorney during your initial consultation. 2. Subchapter V Small Business Bankruptcy Another option is to pursue a small business bankruptcy under Subchapter V. This option is specifically available to small businesses, and Congress enacted Subchapter V in order to make the reorganization process less costly—and thus more accessible to more struggling businesses. A Subchapter V small business bankruptcy is effectively a streamlined version of a traditional Chapter 11 bankruptcy, and it is a viable solution for many small businesses that need help getting out from unmanageable debt so that they can continue working toward profitability. If your small business is struggling, this is definitely an option that you will want to discuss with your Miami bankruptcy litigation attorney. 3. “Small Business Case” Under BAPCPA Another alternative to filing for a traditional reorganization bankruptcy under Chapter 11 is to file a “small business case” under the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). Similar to Subchapter V, a “small business case” offers several benefits (including reduced costs) compared to a traditional Chapter 11 filing. The enactment of BAPCPA preceded the enactment of Subchapter V, and today, small businesses will realize the most benefits from filing under Subchapter V in most cases. With that said, filing a “small business case” under BAPCPA remains a viable option, and, as the owner of a struggling small business, it is important to consider all of the options you have on the table. 4. Chapter 7 Liquidation Bankruptcy If your small business is struggling and you are ready to move on (or try again), then your best option may be to pursue a liquidation bankruptcy under Chapter 7. Unlike a reorganization bankruptcy under... - Published: 2024-06-28 - Modified: 2024-07-10 - URL: https://elpllc.law/blog/7-key-considerations-for-operating-sustainably-after-a-chapter-11-bankruptcy/ Going through a Chapter 11 bankruptcy provides the opportunity to reorganize a company’s debts so that it can remain in business. This distinguishes Chapter 11 bankruptcies from other types of filings, and it makes working with a Miami Chapter 11 bankruptcy lawyer an attractive option for companies that have a clear vision for the future. Companies can face financial strain for a variety of reasons, and, in many cases, their current financial strain is not indicative of their capacity for long-term success. With that said, when going through a Chapter 11 bankruptcy, it is important to have a plan for operating sustainably after the bankruptcy process. Generally speaking, reorganizing a company’s debts will not be enough on its own. If a company does not have a plan for operating sustainably post-bankruptcy, it can find itself facing the same financial struggles it faced pre-bankruptcy, and this can wipe away the benefits of the company’s Chapter 11 filing. Managing Financial and Legal Risk After a Chapter 11 Bankruptcy So, what can (and should) companies do to set themselves up for long-term success once they have reorganized their debts? Here are seven key considerations for operating sustainably after a Chapter 11 bankruptcy: 1. Focus on Developing a Manageable Payment Plan During the Bankruptcy Process First and foremost, it is important to focus on developing a manageable payment plan during the bankruptcy process. This will be foundational to the company’s post-bankruptcy financial success. While companies pursuing Chapter 11 bankruptcies must be willing (and able) to develop a reasonable payment plan that is acceptable to their creditors and to the U. S. Bankruptcy Court, they must also be careful to ensure that their bankruptcy-related payments will not prevent them from meeting their other financial obligations or making necessary investments in the future. If a Chapter 11 payment plan does not facilitate a company’s ability to remain viable as a going concern, then reorganizing under Chapter 11 may not be the company’s best option. 2. Minimize the Costs of the Chapter 11 Bankruptcy Process When reorganizing their debts under Chapter 11, companies should also seek to minimize the costs of the bankruptcy process. For many companies, this means pursuing a small business bankruptcy under Subchapter V. For eligible small businesses, filing under Subchapter V provides a streamlined path to reorganization. This reduces the costs involved—which means that the business retains more of its funds to use for other business-related purposes. 3. Seek to Strategically Discharge Debts While Chapter 11 focuses primarily on reorganization, companies can also discharge debts through the Chapter 11 bankruptcy process. In many cases, strategically discharging debts can be an effective means of increasing positive cash flow while freeing up funds for necessary expenditures. Eliminating or restructuring executory contracts during the bankruptcy process can offer similar benefits. An experienced Miami Chapter 11 bankruptcy lawyer will be able to help you weigh all of your options and develop a comprehensive plan for restoring your company’s financial stability. 4. Make Sure Your Company is Not at Risk for Facing Post-Bankruptcy Challenges The U. S. Bankruptcy Code establishes various grounds for creditors to challenge the reduction or discharge of their claims not only during the bankruptcy process, but also after the bankruptcy process is over. With this in mind, when pursuing a Chapter 11 bankruptcy, it is critical to avoid making mistakes that could potentially trigger a creditor’s right to seek immediate payment or a revocation of discharge. Not only can this eliminate the benefits achieved through a Chapter 11 filing, but it can also lead to additional litigation costs that could (and should) have been... - Published: 2024-06-21 - Modified: 2024-07-10 - URL: https://elpllc.law/blog/resolving-a-partnership-dispute-through-mediation-or-arbitration/ When business partners reach an impasse, it will often (though not always) be in everyone’s best interests to find a way to come to terms. Not only will this help to minimize the costs of dispute resolution, but, in many cases, it will also help to maximize the chances of the partnership remaining viable as a going concern. Mediation and arbitration can both be effective tools for resolving disputes among business partners, and engaging an experienced Miami partnership dispute attorney promptly can help keep the lines of communication open—providing an opportunity to pursue alternative dispute resolution (ADR) before the dispute leads to litigation. Is Mediation or Arbitration Required? When facing a partnership dispute, one of the first steps to take is to review the partnership agreement’s dispute resolution provisions. This will provide the answer to an important question: Is mediation or arbitration required? Partnership agreements frequently include provisions for mandatory mediation or arbitration. These provisions are generally enforceable; so, unless disputing partners agree otherwise, they will need to adhere to the terms to which they previously agreed. If a partnership agreement does not require mediation or arbitration, then disputing partners will need to make a decision about how to proceed. Litigation is always on the table, but it takes a mutual agreement to pursue mediation or arbitration. While disputing partners may agree on very little, they may at least be able to agree to pursue mediation or arbitration—as both of these options are typically much faster and much more cost-effective than litigating a dispute in court. What Are the Benefits of Mediating a Partnership Dispute? Mediation can be a highly effective tool for resolving partnership disputes, particularly when partners pursue mediation relatively soon after their dispute arises. In mediation, the partners work with a neutral mediator who helps keep their negotiations on track, but they retain full control over the outcome of their dispute. This is an important distinction between mediation and arbitration, as we discuss in greater detail below. A mediator is a facilitator, not a decision-maker. The mediator’s role is to help prevent the partners’ negotiations from devolving beyond any hope of reconciliation, and to suggest possible solutions that the partners haven’t thought of on their own. Thus, when it comes to dispute resolution, mediation provides both maximum flexibility and maximum control. The potential downside is that a resolution is not guaranteed. While mediation typically works well when both partners are willing to negotiate in good faith and have a shared interest in resolving their dispute as efficiently as possible, neither partner is required to agree to anything through the mediation process. As a result, when partnership agreements require mediation, they will typically require that disputing partners participate in good faith, and they will typically require that the disputing partners participate in mediation for a minimum number of hours or days (unless they reach an agreement sooner). In the end, both partners must accept that failing to reach an agreement means spending additional money on their dispute and having someone else (either a judge or arbitrator) render a decision for them, and these factors can be powerful motivators for working to find a mutually agreeable path forward. What Are the Benefits of Arbitrating a Partnership Dispute? Despite the fact that mediation and arbitration often get lumped together, they are very different. While mediation is effectively a form of guided negotiation, arbitration is more akin to an abridged version of litigation. Instead of working to find a way to come to terms, the parties take discovery, prepare their arguments and evidence, and then present their case to the arbitrator... - Published: 2024-06-14 - Modified: 2024-07-10 - URL: https://elpllc.law/blog/staving-off-chapter-11-when-is-and-isnt-it-feasible-to-avoid-a-business-bankruptcy/ When a company is struggling financially, filing for bankruptcy under Chapter 11 is an option that allows the company to stay in business while it works to regain financial stability. But, in this scenario, pursuing reorganization under Chapter 11 is not necessarily the only option that is available. Struggling companies may have a variety of other options as well, and an experienced Miami bankruptcy litigation attorney should be able to help owners and executives consider all of these options in light of the varying benefits, risks and probabilities involved. 5 Options for (Possibly) Avoiding a Chapter 11 Bankruptcy To be clear, not all of the alternatives to a Chapter 11 filing are available in all cases. Additionally, some of these options are more straightforward than others, and, depending on a company’s specific circumstances, filing under Chapter 11 could simply be the most favorable and most cost-effective option. But, when dealing with financial distress, it is worth putting all of the options on the table and ensuring that you make an informed and strategic decision with your company’s best interests in mind. Taking these considerations into account, here are five options that companies might be able to pursue to avoid a Chapter 11 bankruptcy: 1. Eliminating Unnecessary Operating Expenses Eliminating unnecessary operating expenses can free up funds to pay a company’s debts as they come due. From subcontractors’ services that are no longer needed to underperforming profit centers and from overstaffing to overspending on travel and other non-essentials, companies may have a variety of monthly operating expenses that they can (and perhaps should) eliminate. While one or two unnecessary operating expenses might not have a material impact on a company’s monthly cash flow, when these expenses start to add up over time, they can become a problem that is worth addressing. 2. Eliminating Unnecessary Overhead Eliminating unnecessary overhead can be an effective cost-cutting strategy for many companies as well. By definition, overhead expenses do not contribute directly to a company’s bottom line, and while some overhead expenses are necessary, others are not. If your company is spending more than it needs to on overhead, then cutting its overhead expenses could be a worthwhile step as well. Even if this isn’t enough to stave off a Chapter 11 filing on its own, it could help—and eliminating unnecessary overhead is an important step for responsibly managing a company’s finances post-bankruptcy as well. 3. Letting Leases, Licenses or Other Contracts Expire Companies can also often achieve substantial cost savings by letting leases, licenses and other contracts expire. If your company can continue making payments under a lease, license or other contract until the expiration date arrives, this could ultimately prove to be the most cost-effective approach. Just keep in mind that some licenses and other contracts may renew automatically, and for those that don’t, the relevant personnel will need to be made aware that the company is not intending to pursue renewal. 4. Restructuring or Renegotiating the Company’s Financial Obligations If these steps are not enough to help your company to meet its financial obligations as they come due, then it may be time to consider restructuring or renegotiating these obligations with the company’s creditors. Creditors will be willing to consider restructuring or renegotiation in many cases—particularly when they know that the alternative is going through a Chapter 11 bankruptcy. There are a variety of options and strategies for doing so, and while there are no guarantees, an experienced Miami bankruptcy litigation attorney may be able to help you leverage your company’s present circumstances to secure more favorable terms. 5. Renegotiating (or Enforcing) Customers’... - Published: 2024-05-31 - Modified: 2024-06-05 - URL: https://elpllc.law/blog/the-basics-of-chapter-11-bankruptcy-according-to-the-u-s-courts/ If you search for information about the Chapter 11 bankruptcy process online, one of the first resources you’ll likely find is a resource published by the U. S. Courts called “Chapter 11 – Bankruptcy Basics. ” But, if you click on this resource, you’ll find that it is anything but basic. It is long and dense, and if you are new to the concepts of bankruptcy and reorganization, it can be overwhelming. With this in mind, in this article, a Miami bankruptcy litigation attorney at Edelboim Lieberman breaks down what company owners and executives really need to know to start framing their thoughts about the process. “How Chapter 11 Works” – The Bankruptcy Petition In a section titled “How Chapter 11 Words,” the U. S. Courts begin by discussing the steps involved in initiating a business bankruptcy under Chapter 11. While the U. S. Courts discuss both voluntary and involuntary petitions, if you are considering a business bankruptcy, you only need to familiarize yourself with the voluntary filing process. A bankruptcy petition is a formal legal document, and it must meet all of the requirements outlined in Chapter 11. When filing a bankruptcy petition under Chapter 11, a business must also generally file: Schedule of assets and liabilities Schedule of income and expenditures Schedule of executory contracts and unexpired leases Statement of financial affairs Additionally, as the U. S. Courts note, “[g]enerally, a written disclosure statement and a plan of reorganization must [also] be filed with the court. ” The timing and substance of these filings—and, in the case of a disclosure statement, whether it is needed at all—will depend on the specific nature of a company’s filing (i. e. , whether the company pursues a traditional Chapter 11 bankruptcy or a “small business” bankruptcy under Subchapter V). The rest of this section focuses on definitions, details and exceptions that your company’s Miami bankruptcy litigation attorney can explain if you decide to move forward with filing under Chapter 11. The Chapter 11 Debtor in Possession A key aspect of Chapter 11 is that it allows the company (or “debtor”) to continue operating during the bankruptcy process in most cases. A debtor that continues to operate during its Chapter 11 bankruptcy is referred to as a “debtor in possession. ” As the U. S. Courts explain, Chapter 11 “places [a] debtor in possession in the position of a fiduciary, with the rights and powers of a chapter 11 trustee, and it requires the debtor to perform ... all but the investigative functions and duties of a trustee. These duties ... include accounting for property, examining and objecting to claims, and filing informational reports as required by the court and the U. S. trustee or bankruptcy administrator ... . ” Thus, while securing designation as a debtor in possession can be essential for mitigating the costs and risks associated with filing under Chapter 11, it is also critical that company owners and executives have a clear understanding of the responsibilities (and potential liabilities) this entails. Here, too, an experienced Miami bankruptcy litigation attorney can help—and ensuring that you have a clear and comprehensive understanding of all relevant benefits and drawbacks is essential to making an informed decision about whether to file a petition under Chapter 11. The U. S. Trustee’s (Limited) Role in a Chapter 11 Bankruptcy One of the most misunderstood aspects of the Chapter 11 bankruptcy process is the role of the U. S. trustee. As we have discussed previously, the U. S. trustee’s role is not to take over the business during the bankruptcy process. Rather, the U. S.... - Published: 2024-05-17 - Modified: 2024-06-05 - URL: https://elpllc.law/blog/discovery-in-breach-of-contract-litigation-a-primer-for-florida-business-owners/ In commercial breach-of-contract litigation, discovery can play a key role in defining both parties’ litigation strategies and setting the stage for trial. But, strategic use of discovery can also provide leverage for pre-trial settlement negotiations in many cases. As a result, when facing contract-related disputes, it is critical that business owners have a clear understanding of the opportunities and challenges that discovery presents. Learn more from an experienced Miami breach of contract lawyer at Edelboim Lieberman: 4 Types of Discovery in Breach-of-Contract Litigation There are four main types of discovery in commercial breach-of-contract litigation (and in commercial litigation generally). Just like discovery itself, each type of discovery presents unique opportunities and challenges—making it critical for companies and their counsel to take an informed and strategic approach to the discovery process. The four main types of discovery are (i) requests for the protection of documents, (ii) interrogatories, (iii) depositions, and (iv) requests for admissions. 1. Requests for Production of Documents In commercial breach-of-contract litigation, each party has the right to obtain relevant records that are in the other party’s possession, custody or control. “Documents” refers to both hardcopy and electronic files—and parties have an obligation to produce responsive documents regardless of the format or location in which they are stored (unless the court orders otherwise or the parties otherwise agree). Depending on the nature of a dispute, some of the types of documents that companies may need to produce during the discovery process include: Corporate records Internal communications External communications Invoices and receipts Financial records Contracts with other parties Inspection reports, audit reports and other documents that are relevant to the parties’ dispute With that said, a key consideration to keep in mind is that parties to litigation only need to produce documents that are responsive to another party’s requests for production. This makes it vital for parties (and their counsel) to craft their requests carefully—and makes it equally vital for parties to carefully review the requests they receive before producing anything in response. When providing access to responsive documents, parties must also be extremely careful to avoid inadvertently disclosing records that are subject to the attorney-client privilege or other protections. 2. Interrogatories Interrogatories are written questions seeking information that a party may not be able to obtain through its requests for the production of documents. Just like requests for production, parties (and their counsel) must carefully craft their interrogatories to ensure that they serve their intended purpose. In some cases, it may make sense to serve interrogatories (or a second set of interrogatories) after a party has had a chance to review another party’s documents—though there can be strategic benefits to requesting as much information as possible early in the litigation process as well. 3. Depositions While interrogatories require written responses, taking depositions affords the opportunity for litigants to obtain oral testimony under oath (interrogatories must be answered under oath as well). In commercial breach-of-contract litigation, it is not unusual for both parties to take multiple depositions—including depositions of company executives, project managers and record custodians, among other individuals. During depositions, the individuals being deposed can (and should) be represented by the company’s counsel—as the company’s counsel may need to intervene in order to protect sensitive information and to preserve issues to raise at trial or on appeal. 4. Requests for Admissions Along with requests for production, interrogatories and deposition notices, parties in commercial breach-of-contract litigation can also use requests for admissions to help build their claims and defenses. Oftentimes, requests for admissions can be effective tools for narrowing down the issues in dispute and streamlining trial as well. Requests... - Published: 2024-05-10 - Modified: 2024-06-05 - URL: https://elpllc.law/blog/5-common-chapter-11-bankruptcy-mistakes-to-avoid/ While reorganizing a company’s debts under Chapter 11 can provide much-needed financial stability and establish a solid foundation for future growth, achieving these outcomes requires an informed approach. Company owners and executives who are contemplating a Chapter 11 filing need to be confident that they are making informed decisions, and they need to be careful to avoid mistakes that could diminish the benefits of going through the reorganization process. Learn more from an experienced Miami Chapter 11 bankruptcy lawyer: Mistake #1: Failing to Weigh All of the Pros and Cons of Filing Under Chapter 11 One of the first mistakes company owners and executives need to avoid is going down the path of pursuing a Chapter 11 bankruptcy when it is not in their company’s best interests to do so. When contemplating reorganization under Chapter 11, owners and executives need to carefully weigh all of the pertinent pros and cons. Filing under Chapter 11 isn’t the best choice in all scenarios, and if the drawbacks outweigh the benefits, it will likely make more sense to pursue a different option for restoring the company’s financial stability. Generally speaking, the benefits of filing under Chapter 11 include: The ability to continue doing business Protection under the automatic stay The opportunity to reduce the company’s monthly debt load The opportunity to eliminate certain debts The ability to build a solid financial foundation for the company’s future In comparison, the drawbacks include: Reorganizing means committing to repaying your company’s debts over time Creditors can seek relief from the automatic stay in some circumstances Creditors can protect their right to full payment in some circumstances Going through the Chapter 11 bankruptcy process takes time Going through the Chapter 11 process can impair your company’s credit For more information on each of these benefits and drawbacks, you can read our article: Pros and Cons of Chapter 11 Bankruptcy for Companies in Financial Distress. Mistake #2: Failing to Consider Creditors’ Claims and Defenses Generally, initiating a business bankruptcy under Chapter 11 affords immediate relief from collections and allows companies to develop favorable reorganization plans that allow them to continue to invest in their operations while paying down their remaining debts over time. This is especially true in “small business” bankruptcies under Subchapter V. However, companies’ creditors will have grounds to enforce their right to full payment in some cases. If any of your company’s debts are subject to creditors’ claims or defenses during the Chapter 11 bankruptcy process, this is a factor that you need to carefully consider when deciding whether to proceed under Chapter 11. If you decide to proceed, you will need to work with your company’s Miami Chapter 11 bankruptcy lawyer to anticipate these claims and defenses—and to be prepared to respond to them as necessary. Mistake #3: Moving Forward with Unrealistic Expectations Another mistake we see far too often is company owners and executives deciding to pursue reorganization under Chapter 11 based on unrealistic expectations. As we just discussed, not all debts are necessarily eligible for discharge or reorganization during the Chapter 11 bankruptcy process. Additionally, while there is a lot that an experienced Miami Chapter 11 bankruptcy lawyer can do to help, owners and executives still need to be prepared to play an active role in developing their companies’ reorganization plans and deciding how to deal with individual debts. A critical factor to keep in mind is that while reorganizing a company’s debts under Chapter 11 can provide a solid foundation on which to build, coming out of bankruptcy successfully requires an effective business plan and strong corporate management. Mismanagement of a... - Published: 2024-04-30 - Modified: 2024-05-15 - URL: https://elpllc.law/blog/what-does-the-ftcs-new-noncompete-rule-mean-for-florida-businesses/ On April 23, 2024, the U. S. Federal Trade Commission (FTC) announced the issuance of a new final rule “banning noncompetes nationwide. ” According to the FTC, its new rule “will generate over 8,500 new businesses each year, raise worker wages, lower health care costs, and boost innovation. ” The FTC’s announcement raises several important questions for business owners—particularly in states like Florida that have traditionally favored the enforcement of reasonable non-competition covenants. So, what do business owners need to know? An experienced Miami commercial litigation attorney at Edelboim Lieberman explains: The True Scope of the FTC’s Noncompete Ban The first thing business owners need to know about the FTC’s ban on noncompetes is that it does not ban all noncompetes. While the FTC’s announcement refers multiple times to “banning noncompetes,” and while the announcement quotes FTC Chair Lina M. Khan as stating that “The FTC’s final rule to ban noncompetes will ensure Americans have the freedom to pursue a new job, start a new business, or bring a new idea to market,” the so-called ban is limited to noncompetes between employers and their workers. This is made clear in the final rule itself, which states: “The final rule provides that it is an unfair method of competition—and therefore a violation of section 5 [of the Federal Trade Commission Act]—for employers to, inter alia, enter into noncompete clauses with workers on or after the final rule’s effective date. The Commission thus adopts a comprehensive ban on new noncompetes with all workers. ” The final rule goes on to state employers can enforce pre-existing noncompetes with senior executives, but cannot enforce pre-existing noncompetes with other workers. Somewhat confusingly, while the final rule uses the term “worker” instead of “employee” in order to cover noncompetes with independent contractors, interns, volunteers, and other individuals, it also defines a “noncompete clause” as a “term or condition of employment. ” The final rule also expressly acknowledges that some noncompetes are not covered, stating: “The final rule does not apply to noncompetes entered into by a person pursuant to a bona fide sale of a business entity... . [and t]he final rule further provides that it is not an unfair method of competition to enforce or attempt to enforce a noncompete or to make representations about a noncompete where a person has a good-faith basis to believe that the final rule is inapplicable. ” Particularly noteworthy in this regard is the FTC’s express decision not to ban noncompetes between franchisors and franchisees. This further clarifies that the FTC’s ban on noncompetes applies exclusively in the employment context (using the term “employment” generally to include independent contractors and other “workers”)—and does not apply to agreements entered into between commercial entities. Using Noncompetes in the Commercial Setting In light of these limitations on the FTC’s noncompete ban, it is clear that companies in Florida can continue to enter into and enforce non-competition agreements with other companies. Additionally, while companies may not be able to enter into or enforce noncompetes with independent contractors and sole proprietors going forward, companies still can (and should) enforce non-disclosure agreements (NDAs), non-solicitation covenants, statutory trade secret protections, and other mechanisms for protecting their confidential and proprietary information. The FTC’s final rule expressly acknowledges the continuing enforceability of these other types of protections in all contexts—both commercial and employment-related. Will the FTC’s Noncompete Ban Be Struck Down? The FTC’s limited noncompete ban has received strong opposition, and several lawsuits challenging the legality of the ban have already been filed. The ban is currently set to take effect 120 days after it is published in... - Published: 2024-04-23 - Modified: 2026-10-23 - URL: https://elpllc.law/blog/10-key-provisions-in-chapter-11-of-the-u-s-bankruptcy-code/ For many businesses in financial distress, reorganizing their debts through a Chapter 11 bankruptcy is the best path forward. Reorganizing allows businesses to get back on solid financial footing without liquidating their assets—and, with only rare exceptions, business owners can continue to run their companies without interference from a bankruptcy trustee. With that said, business owners contemplating bankruptcy still need to ensure that they are making informed decisions based on their specific circumstances. This requires a basic understanding of some key provisions of the U. S. Bankruptcy Code. Keep reading to learn more from an experienced Miami bankruptcy litigation attorney: 1. “Debtor in Possession” The first key provision appears in the Definitions section of Chapter 11. Section 1101(1) establishes that a debtor in a Chapter 11 bankruptcy is a “debtor in possession. ” This means that the debtor remains in control of its assets throughout the bankruptcy process, and it can continue to use its assets to sustain its operations and cover expenses, investments and other expenditures in the ordinary course of business. 2. Creditors’ Committees Section 1102 of Chapter 11 outlines the rules for creditors’ committees. In a traditional Chapter 11 bankruptcy case, the creditors’ committee participates in the structuring of the debtor’s final reorganization plan, and it has the authority to examine the debtor’s books and operations for this purpose. As a result, as the U. S. Bankruptcy Court explains, “creditors’ committees “can play a major role in Chapter 11 cases. ” But, Section 1102(a)(3) also provides that a creditors’ committee “may not be appointed” in a small business bankruptcy under Subchapter V (unless the court orders otherwise “for cause”). This is one of several benefits of filing under Subchapter V for businesses that qualify. 3. Appointment of a Bankruptcy Trustee Section 1104 of Chapter 11 specifies when a bankruptcy trustee may be appointed at the request of a creditor or other “party in interest. ” Once a trustee has been appointed, the trustee can play a major role in the process as well (the trustee’s responsibilities are outlined in Section 1106). Some examples of grounds for a party in interest to seek appointment of a trustee include: Fraud or dishonesty; Incompetence or cross mismanagement; or, If appointment of a trustee “is in the interests of creditors. ” 4. Duties in Small Business Cases Section 1116 of Chapter 11 applies specifically to small business cases. A “small business case” is an alternative to a small business bankruptcy under Subchapter V. Small business cases and Subchapter V small business bankruptcies both offer unique benefits (and have unique requirements); and, for owners of qualifying businesses, it is worth considering both options before deciding how to move forward. 5. Who May File a Reorganization Plan Section 1121 of Chapter 11 establishes that only the debtor may file a reorganization plan during the first 120 days of a business bankruptcy proceeding (in most cases). It also establishes the conditions for creditors and other interested parties to submit proposed plans (with or without a debtor-submitted plan), and it restricts creditors’ ability to file competing plans in Subchapter V small business bankruptcies. 6. Contents of a Reorganization Plan Section 1123 of Chapter 11 lists the required contents for a proposed reorganization plan. The same requirements apply to debtors, creditors and other interested parties. Submitting a plan that complies with Section 1123 is essential, and this is one area (among many) in which an experienced Miami bankruptcy litigation attorney will be able to provide critical insights. One of the key requirements for a reorganization plan is that it must “provide adequate means for the plan’s... - Published: 2024-04-16 - Modified: 2024-05-01 - URL: https://elpllc.law/blog/reorganization-plans-under-chapter-11-what-business-owners-in-florida-need-to-know/ When going through a business bankruptcy Under Chapter 11, a key step in the process is securing confirmation of the business’s reorganization plan. While businesses can often eliminate some of their debts through the Chapter 11 bankruptcy process, the primary focus is on developing a reorganization plan that allows the business to pay its existing creditors over time without going into default. As a result, securing confirmation of a favorable reorganization plan is essential, and business owners should work closely with a Miami Chapter 11 bankruptcy lawyer to ensure that they maximize the financial benefits of their businesses’ bankruptcy filings. For business owners who are considering a Chapter 11 filing, given the importance of the reorganization plan, it is worth taking some time to learn about the process of developing and securing confirmation of a favorable plan. With this in mind, here is an introduction to what business owners need to know: “The Plan”: Subchapter II of Chapter 11 Subchapter II of Chapter 11 is titled, “The Plan. ” It consists of nine sections that outline various stages in the process of securing approval of a reorganization plan during a business bankruptcy. Who May File a Plan (Section 1121) Section 1121 of Subchapter II discusses who (or what entities) can file a reorganization plan in a business bankruptcy under Chapter 11. It provides that the debtor (the business filing for bankruptcy) may submit a plan at any time—including at the time it files its Chapter 11 bankruptcy petition. Section 1121 also provides that only the debtor may file a plan for the first 120 days in most cases, and it outlines the limited circumstances in which creditors, the bankruptcy trustee and other interested parties can file a proposed plan (either in lieu of or in addition to the debtor’s plan). Classification of Claims or Interests (Section 1122) In Chapter 11 bankruptcy cases, creditors’ claims broadly fall into one of two classifications: secured or unsecured. Section 1122 provides guidelines for classifying creditors’ claims when developing a reorganization plan, and it provides that small unsecured claims may be placed into a separate class “for administrative convenience” with the bankruptcy court’s approval. Contents of Plan (Section 1123) Section 1123 of Subchapter II lists all of the information that must be included in a reorganization plan submitted under Chapter 11. Compliance with Section 1123 is critical, as omitting necessary information can lead to delays (among other issues) during the bankruptcy process. To ensure compliance, business owners pursuing reorganization should work closely with a Miami Chapter 11 bankruptcy lawyer who can use his or her experience to craft a plan that is capable of securing confirmation. Impairment of Claims or Interests (Section 1124) Section 1124 of Subchapter II outlines when a claim is considered “impaired” for purposes of a Chapter 11 business bankruptcy. This is important, because only impaired classes of creditors have the ability to vote on accepting or rejecting a proposed plan of reorganization. Section 1124 begins by stating that all claims included in a plan are impaired “unless ... ,” and then it goes on to explain the scenarios in which impairment is deemed not to exist. Strategically leaving certain claims unimpaired can be an effective way to help streamline the bankruptcy process while also maximizing the benefits involved. Postpetition Disclosure and Solicitation (Section 1125) Section 1125 of Subchapter II outlines the procedures for soliciting plan approval during the Chapter 11 process. Here, too, working with an experienced Miami Chapter 11 bankruptcy lawyer to ensure compliance is essential. Acceptance of Plan (Section 1126) Section 1126 of Subchapter II begins by stating that,... - Published: 2024-03-29 - Modified: 2026-10-23 - URL: https://elpllc.law/blog/pros-and-cons-of-chapter-11-bankruptcy-for-companies-in-financial-distress/ Like most business decisions, choosing to file for bankruptcy under Chapter 11 of the U. S. Bankruptcy Code can have both pros and cons. While hiring a Miami Chapter 11 bankruptcy lawyer can make sense in a wide range of circumstances, it isn’t necessarily the best choice for all companies that are in financial distress. With this in mind, making an informed decision involves understanding how a Chapter 11 filing would impact your company—both for better and for worse. Here is a look at some of the pros and cons of pursuing a business bankruptcy under Chapter 11 (including a small business bankruptcy under Subchapter V): Benefits of Filing for Bankruptcy Under Chapter 11 Under the right circumstances, filing for bankruptcy under Chapter 11 (or Subchapter V) can have several benefits for businesses of all sizes. Some of the main benefits include: 1. The Ability to Continue Doing Business After filing for bankruptcy under Chapter 11, the company is classified as a “debtor in possession. ” This means that the company remains in possession of its assets, and this means that the company can continue operating. Additionally, in many cases (including small business cases under Subchapter V), the trustee’s role will be fairly minimal, meaning that the company’s owners and executives can largely maintain business as usual while its bankruptcy plays out in the background. 2. Protection Under the Automatic Stay Filing for bankruptcy under Chapter 11 provides immediate protection under the automatic stay. The automatic stay prevents the company’s creditors from pursuing collection or otherwise attempting to enforce their debts. This alone can provide much-needed financial breathing room, and it can provide companies that are struggling financially with the time they need to work out a resolution that avoids going into default. 3. The Opportunity to Reduce Your Business’s Monthly Debt Load Chapter 11 bankruptcies focus on “reorganizing” the company’s debts. In the end, a well-crafted reorganization plan will allow the company to comfortably make its restructured payments over time while still maintaining positive cash flow and allowing the company to invest in its future. 4. The Opportunity to Eliminate Certain Debts While Chapter 11 focuses primarily on reorganization, companies can also eliminate certain debts through the Chapter 11 (or Subchapter V) bankruptcy process. Oftentimes, companies will be able to negotiate with certain creditors to resolve their debts for less than they owe—as this provides certainty above and beyond that afforded to creditors who still have outstanding claims. 5. Building a Solid Financial Foundation for Your Company’s Future By allowing companies to get out of financial distress and pay down their debts, filing under Chapter 11 (or Subchapter V) affords the opportunity to build a solid financial foundation for their financial future. While pursuing bankruptcy can have short-term negative effects on a company’s credit (as discussed below), this concern will often be outweighed by the long-term benefits that filing can afford. Drawbacks of Filing for Bankruptcy Under Chapter 11 So, that covers some of the main pros of pursuing a business bankruptcy. Now, what about the cons? Here are some potential drawbacks of filing for bankruptcy under Chapter 11: 1. Reorganizing Your Company’s Debts Means Repaying Your Company’s Debts While reorganizing a company’s debts under Chapter 11 can serve as a means of reestablishing financial stability, it still ultimately means paying much of what the company owes. If this isn’t of interest (or simply isn’t viable), then filing under Chapter 11 most likely isn’t the best approach. 2. Creditors Can Seek Relief from the Automatic Stay in Some Circumstances While the automatic stay provides immediate relief for Chapter 11... - Published: 2024-03-22 - Modified: 2024-04-01 - URL: https://elpllc.law/blog/filing-a-claim-for-fraud-what-business-owners-in-florida-need-to-know/ If a vendor, supplier, contractor, strategic partner or other commercial entity has defrauded your business, it will be important for you to make informed decisions about your next steps. While businesses can pursue claims for various forms of fraud, establishing a fraud claim requires a methodical and strategic approach, and time can be of the essence in some cases. Consulting with a Miami fraud lawyer is a key first step, and if you believe your business may have a claim for fraud, we strongly encourage you to speak with one of our lawyers right away. Proving a Claim for Commercial Fraud There are several different types of fraud claims under Florida law. Fraud claims can arise in various scenarios, and the specific circumstances involved will dictate what a plaintiff needs to prove in order to recover damages or secure other appropriate remedies. With that said, two types of fraud claims are particularly common in the commercial litigation context. These are: (i) fraudulent misrepresentations and omissions; and, (ii) fraudulent inducement. 1. Fraudulent Misrepresentations and Omissions Fraudulent misrepresentation and omission claims arise when one party intentionally deceives another. For example, if a contractor represents that it used high-grade materials when in fact it used lower-cost materials that were unsuitable for the job, this could give rise to a claim for fraud (perhaps in addition to a claim for breach of contract). Generally, there are five “elements” to a claim for commercial fraud under Florida law: The defendant intentionally made a false statement concerning a material fact; The defendant knew (or should have known) that the statement was false when it was made; The defendant intended for the plaintiff to rely on the false statement; The plaintiff justifiably relied on the false statement and, The plaintiff suffered losses as a result of its reliance. If a plaintiff can prove each of these elements, then the plaintiff may be entitled to some (or all) of the remedies we discuss below. When determining which remedy (or remedies) to pursue, business owners should work with their counsel to assess their total losses and determine whether damages are a sufficient remedy in light of the circumstances at hand. 2. Fraudulent Inducement Fraudulent inducement is a specific type of commercial fraud claim that arises when one party misrepresents or omits material information in order to cause another party to enter into a contract. The elements of a fraudulent inducement claim are substantially similar to those of a claim for general commercial fraud. Examples of potential grounds to pursue a fraudulent inducement claim in Florida include: Misrepresenting a company’s financial standing Misrepresenting a company’s credentials, client list or past projects Misrepresenting a company’s ability or intent to comply with a proposed contract Failing to disclose known defects or other issues with a company’s products Failing to disclose pending litigation, bankruptcy, liabilities or other relevant risks Again, these are just examples, and whether plaintiffs can pursue claims based on these (and other) misrepresentations and omissions ultimately depends on the circumstances of each particular case. An experienced Miami fraud lawyer should be able to evaluate all potential grounds for pursuing a claim and help you make informed decisions about how best to proceed. Remedies Available in Commercial Fraud Litigation If you decide to move forward with pursuing a commercial fraud claim, you will also need to work closely with your business’s Miami fraud lawyer to determine which remedies to pursue. The types of remedies that are available in commercial fraud litigation generally include: 1. Compensatory Damages Compensatory damages are intended to replace a business’s losses resulting from a fraudulent misrepresentation or... - Published: 2024-03-15 - Modified: 2024-04-01 - URL: https://elpllc.law/blog/filing-for-chapter-11-bankruptcy-again-when-does-it-make-sense-to-pursue-a-chapter-22/ Filing for bankruptcy under Chapter 11 affords the opportunity for struggling companies to restore their financial stability, rebuild their credit and start looking toward the future. But, there are no guarantees and even companies that emerge from Chapter 11 with what initially looks like a manageable payment plan will often find themselves struggling to fully regain their financial footing. When this happens, the company’s owners and executives must make a critical decision: Should they hire a Miami bankruptcy litigation attorney to file under Chapter 11 again? Or should they consider other options? Pursuing a second bankruptcy under Chapter 11 is often referred to as filing a “Chapter 22. ” However, there is no Chapter 22 in the U. S. Bankruptcy Code, and a second Chapter 11 filing is fundamentally the same as a first. With that said, there are some additional considerations involved in seeking to reorganize a company’s debts for a second time, and company owners and executives must be confident that they are making informed decisions before they commit to moving forward. Key Questions for Companies Considering a Second Chapter 11 Bankruptcy So, what should company owners and executives consider when contemplating a second business bankruptcy under Chapter 11? Here are some key questions: Why Are the Company’s Financial Struggles Continuing (or Why Have They Returned)? When contemplating a second Chapter 11 bankruptcy, it is critical to understand why the company is in the position of needing to consider reorganizing its debts for a second time. There are several possibilities, including (but not limited to): Management Issues – Sometimes, continuing or recurring financial struggles following a Chapter 11 bankruptcy result will be indicative of poor corporate management. When this is the case, internal restructuring could be a necessary step—either instead of or in parallel with a second Chapter 11 filing. Business Decisions That Didn’t Pan Out – Along with broader management issues, individual business decisions can also lead to a second round of financial distress. If your company made an investment or took a risk that didn’t pan out, this could be a scenario in which a second Chapter 11 filing is warranted. New Competition – If a company has experienced a loss of revenue due to new competition, this could make the company’s reorganized debt load under its prior Chapter 11 filing untenable. In this scenario, filing again could make sense as a stepping stone toward investing in new innovations or resources that allow the company to regain its prior market share. Market Forces – Along with new competition, various other market forces can lead to financial distress for companies as well. In these scenarios, company owners and executives must carefully assess whether reorganizing the company’s debts for a second time is a viable long-term solution. An Ineffective Reorganization Plan – Companies that have previously filed under Chapter 11 can also face financial distress if they failed to restructure their debts effectively. Here, filing again may make sense, but it will be especially important to choose a Miami bankruptcy litigation attorney who can help maximize the benefits of the process. Each of these has very different implications, and this means that each raises different considerations when assessing the company’s next steps. While a second Chapter 11 filing could ultimately make sense in any of these scenarios, understanding why a second Chapter 11 filing is necessary is critical for ensuring that the process is as effective as possible. What Relief Can the Company Achieve Through a Second Chapter 11 Filing? Company owners and executives contemplating a “Chapter 22” must also determine what relief the company will be able... - Published: 2024-02-29 - Modified: 2024-03-05 - URL: https://elpllc.law/blog/how-can-debtors-defend-against-a-motion-for-relief-from-an-automatic-stay/ For businesses in financial distress, one of the most immediate benefits of filing for bankruptcy under Chapter 11 is triggering the automatic stay. The automatic stay prevents creditors from seeking to enforce their claims, and it provides debtors the opportunity to work through the bankruptcy process without the risk of being declared in default. However, creditors can seek relief from the automatic stay in various circumstances, and when facing creditors’ motions for relief, debtors must work with an experienced Miami Chapter 11 bankruptcy lawyer to protect themselves to the fullest extent possible. 7 Potential Defenses to a Motion for Relief from an Automatic Stay in a Business Bankruptcy While creditors can file motions for relief on various grounds, debtors also have several potential defenses available. Determining which defenses a Chapter 11 debtor can assert requires a careful assessment of the creditor’s claims as well as all pertinent facts and circumstances. With this in mind, some examples of potential defenses to a motion for relief from an automatic stay include: 1. Insufficient Grounds Under Section 362(d) of the U. S. Bankruptcy Code When seeking relief from an automatic stay, a creditor must assert specific grounds under Section 362(d) of the U. S. Bankruptcy Code. In most cases, this involves asserting that either: The creditor will suffer a “lack of adequate protection” or has other “cause” to seek relief from the automatic stay; or, The debtor does not have equity in the property the creditor is seeking to obtain and this property is not necessary to effective reorganization of the debtor’s liabilities. If a creditor fails to assert sufficient grounds for relief under Section 362(d), then no relief is warranted. As a result, attacking the creditor’s claimed grounds for relief will prove to be an effective defense strategy in many cases. 2. Failure to Comply with the Rules for Seeking Relief from an Automatic Stay In addition to asserting sufficient grounds under Section 362(d), creditors seeking relief from an automatic stay must also comply with the rules for seeking relief under the Federal Rules of Bankruptcy Procedures. Rule 4001 establishes extensive procedural and substantive requirements—and, if a creditor’s motion is deficient in any respect, exposing this can be enough to prevent the motion from being granted. 3. Inadequate Notice When seeking relief from an automatic stay, a creditor must provide adequate notice to the debtor and other interested parties, except in very limited circumstances. Similar to other procedural deficiencies, if a creditor seeking relief fails to provide adequate notice, this can also sustain efforts to fight a motion for relief from an automatic stay. 4. Lack of Standing to File Fighting a motion for relief from an automatic stay may also involve challenging the creditor’s standing in some cases. An experienced Miami Chapter 11 bankruptcy lawyer will be able to help you assess whether this is a viable defense in your company’s case. 5. Preserving the Stay is Necessary to Enable the Debtor’s Reorganization Debtors pursuing reorganization under Chapter 11 can also fight creditors’ motions for relief by arguing that preserving the stay is necessary to enable their reorganization. During the early stages of the bankruptcy process, bankruptcy judges will often (though not always) err on the side of facilitating reorganization rather than protecting the interests of individual creditors. 6. Harm to the Debtor Would Outweigh the Benefits to the Creditor Seeking Relief Similarly, Chapter 11 debtors can often challenge creditors’ motions for relief on grounds of equity and fairness. If granting a creditor’s motion would result in undue prejudice, or if any valid interest in granting relief is outweighed by the... - Published: 2024-02-22 - Modified: 2024-03-05 - URL: https://elpllc.law/blog/seeking-relief-from-the-automatic-stay-protecting-creditors-rights-during-the-bankruptcy-process/ Customer and client bankruptcies can present significant risks for creditors. Chapter 7 and Chapter 11 of the U. S. Bankruptcy Code both provide opportunities for filers to significantly reduce (if not eliminate) their debt obligations, and Subchapter 5 of Chapter 11 allows small business filers to do so with limited creditor involvement. As a result, creditors must work with an experienced Miami bankruptcy litigation attorney to protect their financial interests—and, in many cases, this involves seeking relief from the automatic stay. What Is the “Automatic Stay? ” Initiating a commercial bankruptcy proceeding under Chapter 7 or Chapter 11 triggers what is known as an “automatic stay. ” While the automatic stay is in effect, creditors are generally prohibited from seeking to collect the amounts they are owed. Instead, they must participate in the bankruptcy process to protect their claims (to the extent that they can)—whether through involvement with the creditors’ committee or initiation of an adversary proceeding—potentially while pursuing other options as well. When Creditors Can Seek Relief from the Automatic Stay in a Commercial Bankruptcy But, while the automatic stay provides strong protections for commercial debtors, these protections are not absolute. The U. S. Bankruptcy Code allows creditors to seek relief from the automatic stay in various circumstances. Specifically, Section 362(d) of the Bankruptcy Code allows creditors to seek relief from the automatic stay in four circumstances: Section 362(d)(1) –Section 362(d)(1) entitles creditors to relief from the automatic stay “for cause, including the lack of adequate protection of an interest in property of such party in interest. ” Section 362(d)(2) – Section 362(d)(2) entitles creditors to relief from the automatic stay, “with respect to a stay of an act against [eligible] property ... if—(A) the debtor does not have an[y] equity in such property; and, (B) such property is not necessary to an effective reorganization. ” Section 362(d)(3) – Section 362(d)(3) entitles creditors to relief from the automatic stay “with respect to a stay of an act against [eligible] single asset real estate ... by a creditor whose claim is secured by an interest in such real estate,” subject to various conditions. Section 362(d)(4) – Section 362(d)(4) entitles creditors to relief from the automatic stay “with respect to a stay of an act against [eligible] real property ... by a creditor whose claim is secured by an interest in such real property, if the court finds that the filing of the petition was part of a scheme to delay, hinder, or defraud creditors ... . ” Since Sections 362(d)(3) and 362(d)(4) are specific to real estate, most motions for relief from automatic stays in commercial bankruptcy proceedings involve claims under Sections 362(d)(1) and 362(d)(2). Under Section 362(d)(1), secured creditors can demonstrate a “lack of adequate protection” by showing that the collateral securing their debts is diminishing in value. Other potential grounds to seek relief under this section include the debtor’s failure to maintain or preserve collateral, waste or mismanagement, or undue delay in proposing a reorganization plan, among others. Under Section 362(d)(2), creditors can seek relief by showing that both (i) the value of collateral is less than the combined total of all secured debts encumbering the property and (ii) the collateral is unnecessary to the resolution of the debtor’s other outstanding obligations. Filing a Motion for Relief from an Automatic Stay Seeking relief from the automatic stay during a Chapter 7 or Chapter 11 commercial bankruptcy involves filing a motion under Section 362(d). There are several strategic considerations involved, and creditors seeking relief should work with an experienced Miami bankruptcy litigation attorney to decide when to file. There... - Published: 2024-02-15 - Modified: 2024-04-01 - URL: https://elpllc.law/blog/responding-to-a-breach-of-contract-what-florida-business-owners-need-to-know/ As a business owner, it is important to know what to do when a vendor, contractor, customer or other party breaches a contract with your company. While an overly aggressive response can unnecessarily jeopardize an important business relationship, failing to act forcefully can invite additional breaches in the future. To ensure that you are making informed decisions with your company’s best interests in mind, you should speak with a Miami breach of contract lawyer before things get out of hand. When you speak with a lawyer, your lawyer will examine the relevant facts and contract terms to assess your options and help you decide how best to proceed. In most cases, this assessment will focus on three key questions: Was it actually a breach? What options does your company have to pursue enforcement? What remedies are available? Was It Actually a Breach? The first and most important issue to consider is whether the act or omission in question truly constitutes a breach of contract. When assessing whether a counterparty’s action (or failure to act) constitutes a breach, there are three primary considerations: (i) whether there is room for interpretation of the relevant contract term(s); (ii) whether the contract exempts the violation from constituting a breach; and, (iii) whether the counterparty has a contractual right to cure. Contract Interpretation In many cases, commercial litigation arises out of disagreements regarding contract interpretation. Simply put, one party believes there has been a breach, and the other party does not. As a result, when deciding what to do about an apparent breach of contract, it is critical to carefully review the relevant contract term(s) and determine if there is any room for disagreement over their implications. Occasionally, there will be no question that one party has breached. For example, if one party provides a service and the other party doesn’t pay on time, this could be a fairly straightforward scenario. But, if there are questions regarding whether the services provided are contractually compliant, or if the contract does not include clear payment terms, even this seemingly straightforward scenario could quickly become much more complicated. Violations That Don’t Constitute a Breach Sometimes it will also be necessary to assess whether a violation of the parties’ contract constitutes a breach. One scenario in which this commonly arises is when a party fails to meet a contract’s key performance indicators (KPIs). Oftentimes, parties will agree that failing to meet a KPI doesn’t rise to the level of a breach, but instead either: (i) the KPIs are aspirational only; or, (ii) violations of the KPIs warrant lesser remedies than a breach of contract. But, even here, questions can arise. For example, does the contract include a provision requiring good faith and fair dealing? If so, does this provision apply in light of the circumstances at hand? Identifying all pertinent contract provisions is critical, and this is an area where an experienced Miami breach of contract lawyer can help. Contractual Right to Cure When assessing a potential breach-of-contract claim, it is also necessary to determine whether the counterparty has a contractual right to cure. If so, then an apparent breach may not justify legal action—at least not right away. For example, it is fairly common for commercial contracts to include grace periods for payment. A payment may be due on a particular date (and interest may begin to accrue immediately upon nonpayment), but the payor might have a 30-day right to cure, or “grace period,” before the payee is entitled to pursue legal action. What Options Does Your Company Have to Pursue Enforcement? Assuming that your company is dealing... - Published: 2024-01-31 - Modified: 2024-03-05 - URL: https://elpllc.law/blog/commercial-foreclosure-defense-options-for-businesses-in-south-florida/ While facing commercial foreclosure can present significant financial and legal risks, businesses targeted in commercial foreclosure actions will often have strong defenses available. There are several potential defenses to foreclosure under Florida law; and, if your business’ lender has initiated a foreclosure action, an experienced Miami real estate attorney can determine what defenses your business can use (if any) to protect its real property. Even if your business doesn’t have defenses available that are likely to prevent foreclosure, you may have other options for dealing with your business’s lender—and potentially its other creditors as well. In addition to discussing common defenses to commercial foreclosure actions in South Florida, this article also covers some of these other options. 5 Examples of Potential Defenses to Commercial Foreclosure How can your business defend against a pending foreclosure action? Here are five examples of potential defenses to commercial foreclosure in South Florida: 1. Lack of Notice and Opportunity to Cure Commercial real estate loans often require that lenders give notice before initiating foreclosure proceedings. Frequently, these notice provisions include specific requirements as to both timing and format, and borrowers will typically have an opportunity to cure payment defaults as well. If a commercial lender initiates foreclosure proceedings without providing adequate notice and opportunity to cure, this can provide a defense to foreclosure. Even if the business isn’t able to pay, asserting this type of procedural defense can delay the foreclosure proceedings and provide leverage for out-of-court negotiations. 2. Lack of Standing To file a foreclosure action, a lender must have the legal standing to do so. Among other things, this means that the lender must be able to establish that it owns the loan at issue. Lenders regularly buy and sell commercial loans. If the lender pursuing foreclosure against your business’s real property either (i) didn’t yet own the loan when your business allegedly defaulted, or (ii) sold the loan before filing for foreclosure, it may lack standing to seek legal or equitable remedies in court. 3. Statute of Limitations Under Florida’s statute of limitations, lenders have five years from the date of default to initiate a foreclosure action in most cases. If a lender fails to initiate a foreclosure action before the statute of limitations expires, it will lose its right to do so. However, as each individual default can provide a new cause of action, this defense will only be available in limited circumstances. 4. Usury or “Unclean Hands” Commercial borrowers can also avoid foreclosure in some cases by asserting the defense of usury or “unclean hands. ” Essentially, this involves alleging that the lender charged an unreasonably high interest rate or otherwise shares responsibility for the borrower’s default. For example, if a lender assists a business with obtaining an increased loan amount by inflating its income on its loan application, this may prevent the lender from pursuing foreclosure. 5. Fraudulent Inducement Lenders can also be barred from pursuing foreclosure actions based on fraudulent inducement. If a lender makes misrepresentations or omits material information during the pre-loan process—and if a business relies on these misrepresentations or omissions in deciding to borrow—then the business may be able to assert fraudulent inducement as a foreclosure defense. While these are all examples of potential defenses to commercial foreclosure actions in South Florida, the defenses that are available in any particular case will depend on the specific terms of the loan and other circumstances involved. As a result, to ensure that you are making informed decisions, you will need to discuss your business’s pending foreclosure action with an experienced Miami real estate attorney. Other Options for... - Published: 2024-01-24 - Modified: 2024-02-28 - URL: https://elpllc.law/blog/understanding-the-key-terms-in-a-title-insurance-policy/ Buying title insurance is important any time you buy a piece of real estate in South Florida. Hopefully, you will never need to file a claim, but if you do, you will be very glad that you have coverage. If an issue arises and you have title insurance, having the ability to file a claim can be the difference between losing your investment and being able to save it or purchase another property. Whether you are in the process of buying title insurance or you find yourself needing to file a claim, it is important to understand the key terms in a typical title insurance policy. Here is an overview from an experienced Miami title insurance attorney at Edelboim Liberman: “Covered Risks” One of the most important clauses in your title insurance policy is the “Covered Risks” section. This is where your policy outlines the types of issues that it covers. The Covered Risks section of your policy will list several “impairments” that have the potential to interfere with your ownership rights—even though you formally acquired the title through a purchase and sale agreement. Individual policies vary. This is important to keep in mind. To determine which impairments are covered under your title insurance policy, you will need to review its specific language carefully (or hire a Miami title insurance attorney to review it for you). With this in mind, some examples of common Covered Risks include: Fraud and Forgery – If the person or entity that sold you the property (or a person or entity earlier in the chain of title) forged the deed or engaged in any other form of fraud, this may be covered under your title insurance policy. Errors at the Title Recording Office – Along with fraud and forgery, most title insurance policies also cover errors at the recording office. For example, if the recording office failed to register a properly filed title transfer, you should be covered in the event that the unrecorded owner claims exclusive title to the property. Outstanding Construction Liens – A lien is a legal right to an ownership interest in a piece of property that is tied to a debt. In the construction world, construction companies and contractors regularly obtain liens to protect themselves in case property owners don’t pay. Title insurance policies commonly include coverage for outstanding construction liens that aren’t disclosed prior to sale. Outstanding Judgment Liens – In addition to construction liens, properties can also be subject to judgment liens. For example, if someone gets injured in a slip-and-fall accident and files a successful premises liability claim, the court may impose a lien to ensure payment of the plaintiff’s judgment. Judgment liens are commonly covered under title insurance policies as well. Unpaid Mortgage Debt – It is also fairly common for title insurance policies to cover prior owners’ unpaid mortgage debt. Unpaid mortgage debt can lead to foreclosure, as lenders generally have the right to take possession of financed properties when borrowers don’t pay. Buying title insurance can help protect you in the event that a prior owner’s lender seeks to foreclose on your property. Unpaid Taxes and Assessments – Unpaid taxes and assessments can also lead to liens that “encumber” the ownership of a piece of real property. If you have title insurance and you discover that a prior owner did not pay all taxes and assessments owed in connection with your property, you should be able to file a claim under your policy if necessary. However, as we discuss below, exclusions may apply. Again, these are just common examples. Your policy may or may... - Published: 2024-01-17 - Modified: 2024-02-28 - URL: https://elpllc.law/blog/understanding-the-key-terms-in-a-small-business-bankruptcy/ If you are struggling to keep your small business afloat, filing for bankruptcy could be a smart solution. Through bankruptcy, small businesses can reorganize their debts, reduce their monthly financial obligations and regain the financial standing they need to remain viable. Small business owners have multiple options available, and choosing the best option for your business starts with seeking advice from an experienced Miami bankruptcy litigation attorney. 10 Key Terms in a Small Business Bankruptcy Under Chapter 11 To ensure that you are making informed decisions, you will want to familiarize yourself with the key terms that you will encounter during the small business bankruptcy process. These key terms include: 1. Reorganization Keeping your business afloat through bankruptcy involves reorganizing your business’s debts under Chapter 11 of the U. S. Bankruptcy Code. When you file for a small business bankruptcy under Chapter 11, you will work with your business’s Miami bankruptcy litigation attorney to develop a reorganization plan that reduces your business’s monthly debt load to a manageable level. This contrasts with pursuing a liquidation bankruptcy under Chapter 7, which generally involves selling a business’s assets and winding up its operations. 2. Discharge Even though the primary focus of a small business bankruptcy under Chapter 11 is reorganization, businesses can still eliminate some of their debts during the process. This is known as a discharge. An experienced Miami bankruptcy litigation attorney can help you decide which debts to include in your business’s reorganization plan and which ones you should seek to discharge during your business’s bankruptcy. Confirmation of a reorganization plan under Chapter 11 also discharges any debts that creditors fail to preserve during the process. 3. Small Business Case Chapter 11 includes special provisions for small business bankruptcies. One option is to file what is known as a “small business case. ” If your business’s aggregate debts fall below the threshold for filing a small business case, this option can significantly streamline the reorganization process while also reducing the costs involved. 4. Subchapter V Another option for small business owners is to file under Subchapter V. Introduced in 2019, Subchapter V offers even greater benefits than filing a “small business case,” which has been an option since 2005. While pursuing a small business case makes sense in some circumstances, many small business owners will find that filing under Subchapter V is the better option. Some of the additional benefits of a Subchapter V filing include being able to move forward without filing a disclosure statement and the ability to obtain approval of the business’s reorganization plan without a creditors’ committee (in most cases). For more information, you can read our overview of the Subchapter V small business bankruptcy process. 5. Debtor in Possession Whether a business files a small business case or files under Subchapter V, it will be classified as a “debtor in possession. ” This means that the business will remain in control of its assets throughout the bankruptcy process. As a small business owner, what this means for you is that you can continue to run your business while its bankruptcy is pending. The disruptions to your business will be minimal, and you will not have a trustee making decisions about your business over which you have no control. 6. Statement of Financial Affairs While small businesses don’t need to submit a disclosure statement under Subchapter V, they must still file a statement of financial affairs. This is essentially a summary of your small business’s assets and debts. Along with this statement of financial affairs, small businesses pursuing reorganization under Subchapter V must also prepare several... - Published: 2023-12-29 - Modified: 2024-02-12 - URL: https://elpllc.law/blog/title-insurance-what-do-real-estate-buyers-in-south-florida-need-to-know/ Whether you are buying a home or a piece of commercial real estate in South Florida, purchasing title insurance can help minimize your risk and protect your investment. But, while title insurance has benefits, it also has limitations—and it is important to ensure that you understand these limitations before you sit down at the closing table. Learn what you need to know from an experienced Miami title insurance attorney: Answers to FAQs About Title Insurance in South Florida 1. What Is Title Insurance? Title insurance is a type of insurance that protects the policyholder against losses resulting from disputes related to the ownership of the subject property. If a third party claims title to the property—and if the third party’s claim proves to be valid—then the policyholder’s title insurance will cover the policyholder’s losses. However, as we discuss below, there are significant limitations, so it is crucial not to rely solely on title insurance when buying a piece of real estate in South Florida. 2. Are Buyers Required to Purchase Title Insurance? Buyers are not required to purchase title insurance under Florida law. However, lenders will generally require that buyers obtain coverage. Additionally, while title insurance may not be legally required, purchasing a policy is generally worth the relatively modest investment. This is true whether you are working with a lender or you are a cash buyer. 3. What Does Title Insurance Cover in Florida? As the Florida Office of Insurance Regulation (FLOIR) explains, title insurance “insures owners of real property, or lenders using real property as collateral, against loss arising out of defective or invalid titles and the existence of other liens or other legal claims against titles to real property. ” More specifically, potential issues that title insurance policies will generally cover include: Fraudulent and forged prior deeds Outstanding construction liens and judgment liens Prior owners’ unpaid mortgage debt Recording errors (i. e. , incorrectly recording a prior owner’s name) Unpaid taxes and assessments on the property With that said, individual policies vary. As a result, to ensure that your title insurance policy provides the coverage you need, you should review it carefully—or have it reviewed by a Miami title insurance attorney. 4. What Doesn’t Title Insurance Cover in Florida? While title insurance protects buyers and lenders against many types of risks, it does not comprehensively protect against all potential losses. Some examples of issues that typically aren’t covered under title insurance policies include: Easements and rights of way that impair clear title to the property Tax assessments for new construction dwellings Issues with the property itself (i. e. , mold, pest infestations or storm damage) Again, these are just examples. Before you purchase a title insurance policy, you should make sure that you know what it does and doesn’t cover—and you should consult with a Miami title insurance attorney if you have any questions or concerns. As we discuss below, you should strongly consider paying for a title search as well. 5. Do You Need Title Insurance if You Paid for a Title Search? Along with purchasing title insurance, another way that buyers can mitigate their risk is by paying for a title search. But if you pay for a title search, is it still necessary to purchase title insurance? The short answer is “Yes. ” There is a simple reason why: Title insurance covers issues that you might not be able to discover through a title search, just as title searches can uncover issues that might not be covered under your title insurance policy. Ownership interests acquired through divorce and inheritance are two examples of issues... - Published: 2023-12-22 - Modified: 2024-01-16 - URL: https://elpllc.law/blog/what-to-expect-during-and-after-the-subchapter-v-small-business-bankruptcy-process/ Subchapter V bankruptcies allow small businesses to reorganize their debts without facing the additional costs and challenges involved in a traditional Chapter 11 filing. Since Subchapter V was introduced in 2020, it has become an extremely popular tool for businesses that need relief from their current debt loads in order to continue operating as a going concern. But, before filing for bankruptcy under Subchapter V, it is important that business owners know what they can expect during (and after) the process. While business owners will need to consult with a Miami Chapter 11 bankruptcy lawyer regarding their companies’ unique circumstances, here is a general overview of some key steps and considerations involved: How Subchapter V Bankruptcies Differ from Traditional Chapter 11 Bankruptcies One of the easiest ways to understand the benefits of filing for bankruptcy under Subchapter V is to look at the major differences between filing under Subchapter V and filing for a traditional Chapter 11 reorganization. Some examples of these differences include: Role of the Trustee – While filing under Subchapter V still involves the appointment of a bankruptcy trustee, the trustee’s role in a Subchapter V case is primarily focused on facilitating a consensual reorganization plan. In a traditional Chapter 11 case, the trustee plays a much more active role in monitoring the business’s operations and supervising the bankruptcy process. Disclosure Statement – In a traditional Chapter 11 case, the business must prepare and file a disclosure statement with “adequate information” about its financial affairs. This alone can be a time-intensive and resource-intensive process. In a Subchapter V case, a disclosure statement generally is not required. Proposed Reorganization Plan – In a Subchapter V case, only the business can submit a proposed reorganization plan (and it is required to do so within 90 days of filing its bankruptcy petition). In a traditional Chapter 11 case, creditors can propose a reorganization plan if the business fails to do so in a timely manner. Subchapter V small business bankruptcies proceed on a more streamlined timetable than traditional Chapter 11 cases, and, as a result, they generally cost less (and often significantly less) as well. Additionally, in a Subchapter V case, the business is not required to pay quarterly fees to the United States Trustee. There is No Creditor’s Committee (in Most Cases) Another major difference between Subchapter V small business bankruptcies and traditional Chapter 11 cases is the absence of a creditors’ committee. Under Subchapter V, the court may only require the appointment of a creditors’ committee “for cause. ” As stated in the Justice Department’s SBRA Legal Manual, “Generally, the United States Trustee will not have sufficient information to establish cause for the appointment of a creditors’ committee. ” Not only does this help to further streamline the process, but it also reduces the risk of creditors’ objections interfering with the approval of the business' proposed reorganization plan. In Subchapter V cases, the bankruptcy courts will approve both consensual plans and non-consensual, or “cramdown” reorganization plans, as long as they meet Chapter 11’s general feasibility requirement. Small Businesses Must Meet Various Requirements During the Subchapter V Bankruptcy Process Along with proposing a feasible reorganization plan, small businesses must meet various other requirements during the Subchapter V bankruptcy process. Some examples of these requirements include: Filing a statement of financial affairs and all required schedules Filing periodic financial reports Attending all scheduling conferences and other meetings scheduled by the court or trustee Allowing the trustee to inspect the business’s books and records Maintaining insurance and filing all required tax returns This list is not exhaustive, and business owners should... ## Testimonials - Published: 2021-08-18 - Modified: 2021-08-18 - URL: https://elpllc.law/testimonial/would-use-them-again/ I used this law firm to evict my tenant on Hollywood beach. They were running an daycare business out of the apartment we rented and they were subletting. I found this law firm locally on google and called them and retained within a couple hours. Eviction was done in 28 days. Would use them again. - Published: 2021-08-18 - Modified: 2021-08-18 - URL: https://elpllc.law/testimonial/very-professional-and-extremely-knowledgeable/ One of my colleagues called this firm for information on doing a residential eviction for a single family home she rented in Hollywood FL. The eviction lawyers were very professional and extremely knowledgeable. Call them if you have a landlord tenant issue. - Published: 2021-08-18 - Modified: 2021-08-18 - URL: https://elpllc.law/testimonial/great-and-fast-services/ Great and fast services. Like to work with professionals who value your time and budget. - Published: 2021-08-18 - Modified: 2021-10-12 - URL: https://elpllc.law/testimonial/knowledgeable-and-efficient/ I used this law firm to advise me on commercial closings and landlord-tenant law. These attorneys are knowledgeable and efficient. Highly recommend. - Published: 2021-08-18 - Modified: 2021-08-18 - URL: https://elpllc.law/testimonial/highly-recommend/ I have had the opportunity to work and against the partners at this firm and recommend without hesitation. Not only brilliant legal minds, but are willing to out work other firms. Highly recommend! - Published: 2021-08-18 - Modified: 2021-08-18 - URL: https://elpllc.law/testimonial/i-dont-have-any-complaints/ They have been professionally handling my situation from the beginning, either them or their secretary generally gets back to me in a timely manner. You may need to remind them after a couple of days but this is covid time so they're very busy with backups. I'm using them for Unlawful detainer and I dont have any complaints. - Published: 2021-08-18 - Modified: 2021-08-18 - URL: https://elpllc.law/testimonial/these-lawyers-are-professional-smart-and-kind/ I used this law firm evict my tenants in Miami, Boca and Hollywood. None of them paid due to COVID. We were able to get them evicted in the middle of COVID which was good as we were having trouble making mortgage payments. These lawyers are professional, smart and kind. I recommend to any landlord in south florida. - Published: 2021-08-18 - Modified: 2021-08-18 - URL: https://elpllc.law/testimonial/satisfied-with-the-result/ Used this form for an section 8 eviction. We got the final eviction judgment faster than I expected... about 22 days so very happy with the result. Only issue is that in dade county, even with a final judgment of eviction, the sheriffs are not enforcing court orders... we didn’t end up needing the sheriff for removal though as the tenant left. Satisfied with the result. Thanks