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For a business wanting to reorganize its debt and continue operating, filing for bankruptcy protection in federal court is just the beginning. A Daytona Beach bankruptcy attorney knows a company or individual must also find ways to improve its operation and profitability to show it or he is serious about continuing as an ongoing business. Such is the case with Bank of America, which has been operating under a bankruptcy agreement since 2009. The Wall Street Journal reported that regulators have warned the bank it could face enforcement action if it doesn’t do more to improve its performance. The agreement, which isn’t public, includes standards for governance, risk and liquidity management, according to people familiar with the situation that the Journal cited. Regulators have been meeting with the board of directors of Bank of America, demanding the bank do more to meet the standards of the agreement. If not, the bank could face increased scrutiny and greater restrictions. The bank declined to comment to the Journal, but it quoted a person familiar with the talks as saying the board believes it has met the standards. If you want your business to avoid the kind of scrutiny that Bank of America is getting, a Daytona Beach bankruptcy attorney can advise you on steps you can take. In a reorganization bankruptcy (for businesses it’s Chapter 11 of the bankruptcy code), you can successfully get your debt under control. One of the key moves is that you can put off paying back creditors, or even reduce the amount you owe them. But a bankruptcy judge would be more inclined to rule in your favor if you have a good reorganization plan and show the ability to carry out that plan. Part of it could be painful. You may have to reduce your labor force and sell off some assets. A Daytona Beach bankruptcy attorney can advise you on the best way to carry out those painful moves. Your goal is to show the bankruptcy court that you are not just trying to use it to get around doing what’s right. You want to show you are serious about using it as part of your survival plan. Reorganizing your business is never easy, but by doing things correctly you can make the best of a bad situation. The attorneys of Florida-based Mara & Mara Attorneys-at-Law are available to consult with businesses and individuals about bankruptcy and many other areas of the law.
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