Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Restructuring and insolvency law covers the legal processes and strategies that businesses and individuals use when they face financial distress or are unable to pay their debts. In East Lansing, United States, these laws provide a framework for dealing with financial challenges, whether through reorganizing assets and debts, negotiating with creditors, or, in some cases, pursuing bankruptcy. The primary goal of restructuring and insolvency law is to help struggling parties manage or eliminate debt while protecting the rights of creditors and preserving as much value as possible.
In East Lansing, people often seek legal advice in restructuring and insolvency matters for several reasons. Common situations include:
Whether you are an individual, small business owner, or company executive, a knowledgeable lawyer can help you understand your options, protect your interests, and guide you through complex legal procedures.
While bankruptcy and certain insolvency procedures are governed by federal law, particularly the U.S. Bankruptcy Code, many aspects of restructuring and insolvency are influenced by state and local regulations in Michigan and the city of East Lansing. Here are key aspects relevant to local cases:
Understanding how these laws interact is critical for selecting the best debt relief or restructuring strategy for your specific situation.
Restructuring refers to reorganizing a business's debts and operations to improve financial health, often outside of court. Insolvency means an individual or business cannot pay debts as they become due and may lead to bankruptcy or other legal proceedings.
For individuals, Chapter 7 (liquidation) and Chapter 13 (repayment plan) bankruptcies are most common. For businesses, Chapter 11 (reorganization) is often used to restructure while continuing operations.
While it is possible to file without a lawyer, bankruptcy law is complex. An attorney helps ensure correct filing, protects your assets, and maximizes your legal protections.
Michigan law allows debtors to choose between state and federal bankruptcy exemptions, which can protect equity in homes, vehicles, retirement accounts, and personal property.
Many people can keep their homes, especially under Chapter 13, if they stay current on mortgage payments and meet exemption requirements. An attorney can help assess your situation.
The automatic stay is a court order issued when bankruptcy is filed, which stops most collection actions, foreclosures, and lawsuits against you temporarily.
Chapter 7 bankruptcies typically remain on your credit report for 10 years, while Chapter 13 stays for 7 years. However, credit rebuilding can begin soon after discharge.
Once you have filed for bankruptcy, creditors must generally stop contacting you for payment due to the automatic stay. Violations can be reported to your attorney or the court.
Alternatives include negotiating directly with creditors, debt management plans, loan modifications, or business reorganizations without court involvement.
You may restructure debts, sell assets, or dissolve the business according to Michigan law. A lawyer can help explore options and guide you through the process.
Several local and national resources provide assistance and information for those facing restructuring or insolvency in East Lansing:
If you are considering restructuring or finding yourself or your business in financial difficulty in East Lansing, it is important to take prompt action. Here’s how to get started:
A knowledgeable lawyer can guide you through this process, help you avoid pitfalls, and protect your financial future. Taking informed steps now can make a significant difference in achieving the best possible outcome.
