It’s not a topic any business owner ever wants to face, but failure to consult a bankruptcy and insolvency expert can cost you even more in the long run.

Bankruptcy and insolvency filings are on the rise—not helped by a tightening economy and mounting inflationary pressures.

In fact, one report by bankruptcy data analysts at Epiq revealed that Chapter 11 bankruptcy filings—including Subchapter V—were up 43% year-over-year in the first quarter of 2024.

This indicates a lot more businesses are going bankrupt—or seeking professional help to try and avoid that outcome—than at any other point over the past few years.

All of which means that if a bankruptcy for your business is imminent, it’s worth consulting an expert to determine how best to proceed.

At Grobstein Teeple, we believe “good endings come from expert support,” which is why our firm is home to a dedicated team of restructuring and insolvency experts.

Proven Expertise in Bankruptcy and Insolvency Proceedings

Grobstein Teeple offers expert support across a range of interrelated fields and disciplines. 

One key area is bankruptcy and insolvency, where our Nevada-based Principal, Dimple Mehra, excels far beyond the average accountant.

“Before I joined Grobstein Teeple in 2019, I worked for the U.S. Trustee’s Office,” Mehra explained.

“I have a strong legal background and that ultimately led me to bankruptcy and litigation work.

“So I do a lot of litigation expert work alongside my bankruptcy work.”

It’s a background that ensures Mehra has seen both sides of the bankruptcy coin—and knows how to guide clients through every step of what can be a complicated and emotional process.

It also helps that she worked closely with the firm’s co-founder, Howard Grobstein, during her time at the U.S. Trustee’s Office.

“Howard was a panel trustee at the time, so he and I worked very closely together for almost seven years while I was working for the government,” Mehra explained.

“When we assist debtors, work with bankruptcy trustees, or handle creditor work, I know the most effective ways to deal with government processes.”

Coast to Coast Bankruptcy and Insolvency Solutions

With Grobstein Teeple offering a range of coast to coast bankruptcy and insolvency solutions, the firm is not bound by any geographic constraints.

“With the work that I do and the way the business is set up, we can service our clients anywhere and at any time,” Mehra said.

“We’re not limited by geographical constraints—we provide coast to coast bankruptcy and insolvency solutions, among everything else that we do.”

Those solutions include specialized consultancy across a range of bankruptcy and insolvency areas, as well as restructuring—from forensic accounting and fraud investigation, to receiverships and trusts, family law, and expert witness and litigation support.

“Let’s just say a business owner thinks there’s some kind of fraud going on, or some assets missing, they would hire us to help investigate the potential fraud,” Mehra explained.

“We’ll look into the books and financial records and do any kind of investigatory work related to accounting.”

It’s a level of expertise the firm combines with a range of other financial consulting services— from straightforward tax returns, all the way through to complex business reorganizations and liquidations.  

“A lot of bankruptcy trustees hire us just to prepare tax returns for their estates, because the estates have to file returns if they administer any assets,” Mehra explained.

“But on the other hand, we also have creditors on the other side of those bankruptcy proceedings that need help understanding the financials of the bankruptcy debtor,” she added.

“They’ll want us to go in and investigate because if they’re owed a lot of money, they’re conscious of the fact that there might be something missing or there might be something that the debtor or the trustee may miss.

“So they’ll want us to go in and do a deep-dive and get to the bottom of those finances.”

Thinking of Restructuring? Act Before It’s Too Late

So, what is bankruptcy and insolvency beyond being a situation where individuals and businesses cannot meet their debt obligations?

Most of us know there are three distinct types of bankruptcies in the United States. These are:

Chapter 7. This involves the liquidation of assets to pay off creditors.

Chapter 11. This allows businesses to restructure their debts and continue operating. It includes Subchapter V, which imposes shorter deadlines for filing reorganization plans, but is less expensive to administer.

Chapter 13. This enables individuals to organize their debts and create a plan to repay them over time.

Of these, it’s Chapter 11 (and its associated Subchapter V) most businesses turn to when debts have mounted and working capital has run dry. 

Yet it’s also a time when many businesses discover they’ve waited too long to make any meaningful changes.

“I would say the most common mistake people make when it comes to restructuring is that they simply wait too long,” said Grobstein Teeple co-founder and CEO, Josh Teeple.

“They don’t let people know how dire things are, or they hope for some sort of miracle, and it just doesn’t happen.”

“Suddenly they’re under pressure to get something done, or they’ve run out of the money they needed to reorganize the right way.”

If there’s a simple piece of advice for businesses considering bankruptcy and insolvency proceedings, it’s to seek professional help sooner rather than later. 

“Most businesses simply run out of runway,” Teeple admitted. 

“If you know that a bankruptcy is on the horizon, the best advice is to seek professional guidance as quickly as possible.”

Need to speak with a bankruptcy and insolvency expert? Click the link to book a call.