Bankruptcy Alternatives

In my first meeting with the debtor, the options I must advise the debtor include the following:

A. Restructuring

1. FSA settlements
2. SBA compromise

B. Workout considerations. Concern: oftentimes a workout is simply an opportunity for the bank to strengthen their loan and lien position.

C. Filing bankruptcy.

In order to evaluate possible restructuring, workouts, or bankruptcy reorganizations, it is imperative that the debtor develop a realistic cash flow projection.