Business Bankruptcy Success Stories

Working to Help Clients Thrive

Success Stories

Our Attorneys Get Results for Small Businesses Throughout Los Angeles

Health Care Provider Stays in Business After Other Law Firms Said ‘No Chance’

A health care provider lost significant income as a result of managed care. The company was behind on its payables and owed more money to its bank that its assets were worth. Through expert testimony, our bankruptcy and debt relief lawyers established a low liquidation value for the assets and stripped the bank’s lien in excess of the asset valuation, making the bank a largely unsecured creditor that was paid, along with all other creditors, 10 cents on the dollar over several years. Had the company liquidated, these creditors would have received nothing. Three other bankruptcy firms turned this case down and advised the client there was no chance of success.

Individual Gets More Time to Pay Taxes & a Lower Interest Rate

A wealthy individual owed approximately $400,000 in past-due taxes. The IRS wished to levy on the client’s retirement plan (giving rise to further taxes) and would allow only one year outside of bankruptcy for repayment. Through bankruptcy, we obtained a repayment plan of six years at 6% interest with no penalties, compared to the effective rate outside of bankruptcy (interest and penalties) of 18%.

Roofing Supply Company Stays Open, Pays Zero Taxes for Several Years

An extremely profitable roofing supply company lost in litigation and was hit with a large judgment. The creditor was about to close down the company. The successful Chapter 11 case we led provides 30% on the dollar to creditors (including the judgment holder) over four years, equaling a write-off of 70% of debt. Our careful bankruptcy planning also allows the company to use its Net Operating Loss to owe no income tax for two-three years.

Home Saved from Foreclosure

Like many other families, our client was the primary breadwinner for his family. When he lost his job and had difficulty finding a comparable job, the bills piled up. When he contacted us, he had fallen behind on his home mortgage, accumulated significant credit card debt, and faced the loss of his home through foreclosure. Through a Chapter 13 filing, the client was able to eliminate nearly all of his credit card debt and catch up on his mortgage payments – saving his home.

Our Attorneys Also Represent Lenders & Creditors: Examples of Our Successes

Loan Fraud Exposed; Lender Gets Monthly Payments Despite Chapter 7 Filing

Our client had extended a second trust deed loan to a man who stated in his application that he was not a party to any lawsuit. The borrower filed a Chapter 7 bankruptcy after his home was foreclosed by the senior lienholder. When our independent investigation revealed a pending lawsuit against the borrower in an out-of-state court, we argued in the bankruptcy court that the loan to our client should be nondischargeable. The borrower agreed to stipulate to entry of judgment and make monthly payments to our client.

Bonding Company Pays Debt, Interest & Fees

A subcontractor who went bankrupt owed our client $200,000. We filed suit against the contractor’s bonding company and obtained a judgment after trial for all the client’s damages, plus interest, and attorney fees. The bonding company paid $265,000.

Interstate Bankruptcy Scheme Stymied; Foreclosure Sale Completed

The morning our client was to finalize a foreclosure sale in California, a deed of trust was recorded in the name of an entity whose principal had filed a bankruptcy in Florida. On our emergency request, a hearing to permit our client’s sale to proceed was set by the Florida court just eight days later. Our investigation produced evidence showing that the debtor’s gambit was part of a scheme of interrelated bankruptcies. The judge granted relief from stay with extraordinary relief binding any future bankruptcy case. Our client was able to complete the foreclosure sale only three weeks after the original bankruptcy notification.

Lien Enforced After Bankruptcy

Our client held a judgment lien against property of a borrower who had been discharged in bankruptcy. The borrower reopened the bankruptcy case and filed a motion to avoid the lien. Such motions are usually granted without a hearing; in this case, we noticed several areas we felt we could attack. We filed an opposition that enabled our client to collect $48,000 on its lien when the debtor’s home was sold.

Rent Collection/Real Estate Transaction Successes

Payment of Back Rent Negotiated

A doctor who owned a shopping mall faced financial ruin when his anchor tenant, a large department store, filed for bankruptcy. The department store occupied a large site and owed a great deal of rent. We helped our client, the doctor, make an informed choice based on understanding the costs and benefits of all options. In this case, the best choice was to aggressively enforce his right to the rent from the large department store corporation and evict the tenant so he could market the space and find a new tenant.

Payment for Foregoing an Option to Buy

Our client, a real estate developer, had acquired an option to purchase land that he intended to lease to a national automotive service franchise. The party who granted the option went into bankruptcy and attempted to reject the developer’s offer in order to seek a more lucrative sale. We litigated vigorously on behalf of our client. As a result, despite the fact that the law was probably in favor of the party in bankruptcy, the debtor and his new buyer elected to pay our client to agree to voluntarily terminate the option. Our client was quite pleased with the $300,000 he received.

Despite Tricky Bankruptcy Proceeding, Buyer Recovers Investment

Our client purchased an apartment building at a foreclosure sale. Because the foreclosing seller had not fully complied with the law, there was a latent defect in the title. Months later, the former owner, now in bankruptcy, tried to have the sale set aside based on the irregularity. Our client had already spent hundreds of thousands of dollars improving the building and was at risk of losing that investment. As a result of our aggressive and creative defense of his position, our client was awarded a lien for all out-of-pocket expenses, including a significant portion of the attorney fees. The former owner paid the lien in full.

Mortgage Broker Completes Transaction with Borrower in Bankruptcy

Our client, a mortgage broker, was in the middle of a refinance to cure mortgage arrearages when his borrower had to file for bankruptcy to stop a foreclose sale. The refinancing was still viable, but completing the transaction required detailed knowledge of the applicable bankruptcy law. The mortgage broker referred us to his client, whose lawyer was not experienced in this area. We filed a motion on behalf of the debtor that enabled the refinancing to succeed, saving the property from foreclosure. The mortgage broker, who had paid our fee in advance, billed all of it back to his client through closing costs. The property was saved for his client from foreclosure.

Hear From People We've Helped

  • Honesty, Integrity, and Respect for the Law

    Sally C.
  • Courageous Judicial Officer of the Court

    Former Client
  • Honor, Compassion, and Zealous Respect for the Law

  • "David Zolkin’s tenacious advocacy restored my faith in the judicial system. He was able to secure an order dismissing the debtor’s case with a permanent bar; something unheard of in bankruptcy. This, in turn, protected my rights as a creditor."
    Former Client
  • "We remain incredibly grateful!"
    Patrick K.
  • "Jim Selth has always come through in a very professional, timely, and responsible manner."
    Marc B.
The Right Firm Makes a Difference Why Hire Our Firm?
  • Thousands of Cases Handled

    Our experienced attorneys have successfully represented thousands of businesses and individuals with financial problems.

  • We Offer Cost-Effective Expertise

    Flexible fee arrangements enable small and mid-sized businesses to obtain the type of relief usually reserved only for large companies.

  • Big Firm Experience at a Boutique Price

    Each of our partners have decades of experience helping clients successfully navigate all kinds of complex financial matters. 

  • A Full-Service Bankruptcy Law Firm

    One of the few true full-service bankruptcy firms in Los Angeles specializing in all chapters of the Bankruptcy Code and out of bankruptcy solutions.

Financial Freedom is One Call Away Big Firm Experience. Effective Service

We can help you find clarity and peace of mind so you can move ahead to a positive future with your financial situation under control.

  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.