This course is designed to help public accountants understand (1) what bankruptcy can to (and can’t do) for clients in financial distress and (2) how to minimize loss to clients whose customer/tenant/contract party files bankruptcy. This course will equip accountants to recognize the early warning signs and guide clients in getting the protection they need.
Publication Date: February 2025
Designed For
This session is perfect for accountants and financial advisors advising clients who may need relief from trade debt, are paying over-market leases or need to monetize under-market leases, need a breathing spell to negotiate an asset sale or those whose customers/tenants or contract parties are slow paying, are trying to restructure debt and/or may be headed to bankruptcy court.
Topics Covered
- Bankruptcy Trends
- Why are bankruptcy filings on the rise and what can your client do to protect itself?
- Chapter 11 v. Chapter 7 for struggling clients
- The substantive and strategic differences between liquidation and reorganization (which are often liquidations)
- What sub-chapter V is and how it can help your small business clients
- Pros and cons of each type of bankruptcy filing
- Creditor issues
- Help your clients collect before bankruptcy to best position them if their customer/tenant/contract party files
- Apply payments strategically if bankruptcy is on the horizon
- Renegotiate contracts in anticipation of bankruptcy
- Navigating the bankruptcy process
- Automatic stay
- Proofs of claim
- Asset sales
- Rejection/Renegotiation of Contracts and Leases
- Preference and Fraudulent conveyance actions
Learning Objectives
- Describe the differences between Chapter 11 and Chapter 7 Bankruptcy
- Identify how Chapter V bankruptcy may help your small business clients
- Identify bankruptcy related issues and recognize how early intervention can maximize the benefits of bankruptcy for financially distressed clients
- Identify how to minimize losses and risks for creditor clients
- Identify how to minimize financial exposure in bankruptcy situations for your clients
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Specialized Knowledge and Applications (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructors
Lippes Mathias
Navigators. Way Finders. Problem Solvers. It’s who we are, what we do, and how we approach law differently at Lippes Mathias. We’re inquisitive. We think ahead, and around corners, for our clients. It’s how we find answers to legal questions that advance business outcomes – not endless options and choices. Because we know working together to understand our clients’ needs will move their businesses forward. We’re collaborative. Ability before title; tenacity before tenure. The only way to keep growing and thriving is to build our firm from within. Here, partners teach associates how to grow meaningful client relationships. Associates bring partners new business ideas to navigate together. It’s an invaluable two-way street that continually paves the path of our firm’s growth. We’re supportive. We respect you and your life, your loved ones and your commitments. Work-life balance does exist, and we value it. This is our compass. It’s why we can tell you about the Lippies Difference, and how we’re different from most other firms, but it’s better to discover for yourself.
Joann Sternheimer
Ms. Sternheimer is a partner at Lippes Mathias LLP, and has more than 30 years’ experience representing clients in bankruptcy cases and adversary proceedings. Joann represents secured and unsecured creditors, shareholders, landlords and bankruptcy trustees in multiple jurisdictions in all aspects of chapter 7 and 11 bankruptcy practice. She has also acted as U.S. counsel to foreign-based insolvency monitors and creditors in chapter 15 bankruptcy proceedings. She represents plaintiffs and defendants in adversary proceedings, including fraud-based actions. She has been appointed special discovery master and mediator by the United States Bankruptcy Court for the Northern District of New York.
Joann represents clients in non-litigated security interest enforcement and out-of-court debt restructure arrangements. She also represents clients in complex commercial litigation in state and federal courts in New York and New Jersey.
Joann began her career as law clerk to the late Hon. William F. Tuohey, United States Bankruptcy Judge, District of New Jersey and as an associate at a prominent New Jersey firm where she represented debtors in all aspects of Chapter 11 practice.
Joann received the Legal Project's Outstanding Service Award in 2021, the Capital District Women's Bar Association's 2007 Pro Bono Award and the Legal Project's 2005 Kurt Clobridge Award for her service to low-income clients. She has been repeatedly recognized by Upstate New York Super Lawyers® (2009-2021), received an AV Preeminent® rating from Martindale Hubbell®, and was selected as a Fellow of the Litigation Counsel of America™, a trial lawyer honorary society. She is a frequent lecturer on topics such as bankruptcy litigation, lien perfection and priority and managing distressed assets.
Joann is a Past President of the Northern District of New York Federal Court Bar Association and the Capital District Women’s Bar Association. She is also a past president (2016-2018) of The Legal Project's Board of Directors. She was nominated by the Board of Judges for the NDNY Bankruptcy Court and served on the Standing Local Rules Committee from 2012-2015. In December 2010 and again in 2014, she was appointed by the Chief Judge of the District Court for the Northern District of New York to serve four-year terms on the Panel of Attorneys Responsible for the Investigation and Prosecution of Attorney Disciplinary Complaints.
Leigh A. Hoffman
Ms. Hoffman’s practice regularly involves commercial litigation and
dispute resolution. She represents national lenders in matters involving
complex consumer and commercial bankruptcies.
She has also represented numerous bankruptcy trustees, creditor’s
committees, and commercial clients in large liquidation cases dealing
with preferences, fraudulent conveyances, and insider transfer
recoveries. She negotiates bankruptcy treatment for unsecured trade
creditors as “critical vendors” and requires payment for clients’ goods
delivered just prior to a bankruptcy filing. She serves as national counsel
for an international auto-finance lender, coordinating all aspects of
bankruptcy fraudulent conveyance litigation defense. She also assists inhouse
counsel in drafting RFPs, SLAs, and SOW for clients utilizing
outside bankruptcy vendors.
Ms. Hoffman provides counseling on consumer finance regulatory
compliance to national lenders. She regularly addresses comprehensive
federal and state regulatory compliance issues related to consumer
leasing, consumer finance, automotive financing, collections, legal risk
management, credit reporting, and governmental examinations. Her
practice focuses on drafting personal property financing and leasing
agreements and related program documents. She assists clients in
developing consumer lending policies, procedures, guidelines, and
conducts in-house training tailored to those policies and best practices.
Ms. Hoffman is an active volunteer in the capital district community and is
currently serving as a Member of Executive Committee of the Board of
Directors for Ronald McDonald House Charities of the Capital Region.