The Intricacy and Satisfaction of Insolvency Cases
Bankruptcy proceedings for businesses can be exceedingly difficult. They are usually loaded with complications and nuanced situations requiring diplomacy and strength. Yet, they can also be rewarding, which is why many lawyers specialize in insolvency cases.
What Insolvency Is About
Often, insolvency cases involve reorganization, aggressive agreements with debtors, receiverships, liabilities, shareholder disputes, multiple causes of action across several jurisdictions, and more.
But insolvency cases aren’t just about money and assets—or a lack thereof. They are about people. Company owners who poured blood, sweat, and tears into their businesses, only to see a cash crunch or poor decision send them spiraling into bankruptcy. People employed by insolvent companies who need their paychecks and, ultimately, would like to continue having a job. People who work for the debtors, who want to keep their jobs, too.
The Satisfaction of Insolvency Law
It’s difficult to witness the effect that mistakes can have on a business. But through bankruptcy proceedings, lawyers can help businesses come back from the brink. They watch and offer guidance as recovery strategies are implemented, creditors are settled with, and a company that was once on the edge of closing gets a whole new start.
In some cases, however, lawyers find that it’s the actions of others that eventually lead to insolvency. When this is the case—especially when those actions involve malfeasance—litigators can go after those who are at fault and possibly recover some assets for the innocent creditors and shareholders. Doing so not only takes patience and time but may require the help of auditors, forensic accountants, and other recovery associates, all of which the insolvent client may not have funds to pay for.
Strengthening Services Through Insolvency Litigation Funding
To be the best in your field requires offering something that others don’t. For insolvency lawyers, that may mean taking cases on a contingency basis and investing in the recovery of assets or helping implement recovery strategies. No matter what, it means time—and time is one of the most precious and costly commodities that lawyers have.
That’s one reason insolvency litigation funding is gaining so much popularity among insolvency lawyers. Through non-recourse insolvency litigation funding, lawyers secure the capital they need to sustain their firms while fighting for their insolvency clients. How does litigation funding work in insolvency cases? It’s simple and fast:
• Apply for funding: Funding is backed by one of the cases in your case load
• Work with an underwriter: Underwriters with extensive experience review your case to determine the likelihood of success
• Funding approval: If the case is deemed strong, funding is approved and you receive payment*
• Use the funds: Litigation funding can be used for anything your firm needs, such as operating expenses
• Repay the advance: Once the case is settled or won and the award is received, the funding advance and interest are paid back
Insolvency litigation funding could be one of the most important strategies an insolvency lawyer has, both in the servicing of their clients and the growth of their firm.
*Court approval may be necessary before lawyers can receive funding for insolvency cases.
Partner with Pravati Capital today to support the future of your clients, and your firm, with the insolvency litigation funding you need to win.