Fort Lee Lawyers Guide Corporate Bankruptcy Cleanup

The company’s pricing power eroded due to repeated contract rate cuts, and accounts receivable stretched beyond normal collection cycles, so liquidity weakened even while sales continued. 

Payroll costs consumed the vast majority of monthly inflows, and short-term borrowing filled the gap until credit lines tightened. As arrears compounded, the business faced back taxes, unpaid social insurance-type contributions, and missed loan payments, which turned ordinary vendor pressure into coordinated collection action. 

In many matters like this, the total unsecured and priority exposure can exceed roughly $200,000 when converted from about KRW 300,000,000, depending on the exchange rate used at the time of evaluation.

Courts and trustees typically look for objective signs that the company cannot pay obligations as they come due, that liabilities substantially outweigh realizable asset value, and that there is no credible path to restore viability without harming creditors. 

The key is documentation that explains why the business cannot “trade out” of the problem, including bank activity, aged receivables, loan terms, tax demands, and payroll records. 

Fort Lee lawyers usually treat this as a proof-building exercise, because clear, consistent financial storytelling reduces procedural friction and limits later disputes.

Counsel typically starts with a structured intake that maps the last year of cash movement, identifies unpaid trade vendors, separates loans from shareholder advances, and confirms where tax and payroll obligations sit in the liability stack. 

Inventory and equipment are then evaluated at conservative, liquidation-oriented values rather than optimistic book values, because overstatement can create credibility issues once a trustee reviews schedules and supporting records.

Where receivables are unlikely to be collected, they are treated as impaired and documented accordingly, so the court file reflects realizable value instead of accounting assumptions.

Bankruptcy hearings and trustee conferences move faster when the company can answer “why now” and “what changed” with documents, not just narrative. 

A strong filing package usually includes a timeline of revenue decline drivers, internal turnaround attempts, and the point at which continued operations would worsen creditor harm. 

Fort Lee lawyers also coordinate messaging so that employees, key vendors, and lenders receive consistent, legally appropriate explanations, which helps reduce panic driven reporting, duplicative demands, or misinformed negotiations that undercut the process.

The first step is to calculate amounts by employee, align them with time records and pay statements, and separate base wages from other components such as accrued leave or separation pay. 

This prevents inconsistent numbers from appearing in different forums, which is a common source of credibility damage. 

Counsel can also help management communicate in a disciplined way, because informal promises made under stress often create misunderstandings and new disputes that complicate trustee administration.

Tax arrears require careful categorization because different tax types and collection tools can behave differently, and the paper trail matters. A practical approach is to separate sales-type taxes, payroll-withholding type items, and other assessments, then match each category to its notices, dates, and enforcement posture. 

This is also where Fort Lee lawyers can help keep the company focused on process integrity, because ad hoc payments or last-minute transfers can raise questions later even when intentions were benign.