Bankruptcy Accounting
When circumstances take a turn for the worse businesses can become unprofitable and insolvent. In these circumstances we can provide a broad range of bankruptcy accounting services to companies involved in Chapters 11 or 7 bankruptcy proceedings.
A Chapter 11 bankruptcy involved a reorganization of the company and a restructuring of its debt to restore viability to the company. In a Chapter 11 bankruptcy assets are typically not liquidated, nor are debts forgiven. The terms are the debt are merely changed to make them more manageable for the company.
In a Chapter 7 bankruptcy a trustee is appointed to oversee the liquidation of the company’s assets. The proceeds are used to pay off the company’s debts. The owners receive any fund remaining after the debts are paid. If the funds are not sufficient to pay the debts, the remaining debt is forgiven.
We can assist in the interpreting complex tax and accounting rules related to bankruptcy and assist with the filing of bankruptcy estate tax returns. For debtors choosing Chapter 11 reorganization, we can help management make difficult decisions related to the reorganization plan to improve the likelihood of successfully emerging from bankruptcy.
We can assist with:
- Preparation of Schedule of Financial Affairs (SOFA)
- Assistance with development and negotiation of the reorganization plan
- File Monthly Operating Reports (MOR) with the US Trustee
- Preparation of estate tax returns and advise on tax matters
- Managing document flow
For creditors we can help evaluate whether reorganization or liquidation plans are fair for the creditor. We can help with:
- Valuation of secured assets
- Fraud investigations
- Restructuring of obligations
Call today for a free consultation.
Related Services
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Business Valuations
Valuations of closely held businesses require analysis beyond analytics to uncover the value of the firm's intangibles.
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Bookkeeping
We offer flexible bookkeeping solutions that include partially and fully outsourced models, as well as, training of your in-house staff.
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Financial Reporting
Our financial reporting services are aimed at businesses that can benefit from regular financials but are too small to hire a full time controller.
For more information about the services our firm offers please call 480-998-3945, Monday through Friday from 9:00 a.m. to 5:00 p.m. MST. You can also contact us using our online form.