If you or your business has already reduced expenses and increased sales and obligations still cannot be met on a timely basis, an informal workout should be proposed to creditors based on the available cash flow. In the informal workout process, advice and assistance will be given in the determination as to which creditor is secured and unsecured, their respective legal rights and priorities. Once the essential secured and unsecured creditors are identified, all available cash flow will be dedicated over a reasonable period of time in order to allow your business the opportunity to stabilize and regroup. If you or your corporation cannot project a 100% payout to creditors, legal assistance will be given in preparation and presentation of a disclosure of all assets and liabilities. A written settlement offer of less than 100% will then be made.

If the informal workout is not successful, then a formal approach to dealing with debts needs to be taken. The decision on whether or not to file a Chapter 7, 13 or 11.