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FAQ

Business debt resolution is a rational, out-of-court process of restructuring a distressed company when it can no longer support its obligations. Operating under commercial law (the Uniform Commercial Code) an Article 9 restructuring fully resolves debt from a business operation while preserving jobs, operations, and core value. Creditors benefit from a cooperative, orderly process that maximizes recovery compared to liquidation or litigation.

Bankruptcy, by contrast, is a judicial process that often destroys value. Chapter 11 filings are costly, lengthy, and uncertain—roughly 90% of small / medium size business filings will never achieve a successful discharge; resulting in liquidation, high legal fees, reputational harm, and loss of control. In short, leaving owners worse off than before. Debt resolution through Article 9 restructuring preserves value and creates a “win-win” outcome for both owners and creditors, offering a faster, private, less intrusive alternative. When the business survives and value is preserved, all parties benefit over the alternative of failure and liquidation.

RISE (Restructure, Insulate, Strategize & Emerge) is a structured program that resolves unsupportable debts and personal guaranties without bankruptcy or new borrowing.

  1. Initial Consultation – Begins with a confidential fact-finding assessment and one-hour consultation. Within 24 hours you’ll understand your options.
  2. Restructure – An Article 9 transaction fully resolves debt from the business operation, transferring assets into a new company free of all legacy liabilities and debt beyond asset value.
  3. Insulate – Cash flow, receivables, and operating accounts are shielded from legally unwarranted creditor interference.
  4. Strategize – We go beyond resolving the debt to rebuild the business for stability and growth. This includes working directly with critical vendors to maintain supply relationships, renegotiating leases and payment terms, and restoring access to working capital and conventional financing. The strategy phase ensures the reorganized company is not only free of unsupportable debt but positioned to operate sustainably going forward.
  5. Emerge – Any personal guaranties are then resolved through affordable settlements, made possible because you continue to earn from the relaunched operation.
    The business continues functioning debt-free, positioned either for further growth or a successful sale / exit on a non-distressed, fair-market footing.

The RISE program applies across a wide range of commercial obligations, including:

  • Merchant Cash Advances (MCA)
  • Secured and unsecured business loans
  • SBA loans and Offer in Compromise (OIC) settlements
  • Vendor and supplier debt
  • Mortgage and landlord obligations
  • Equipment and property lease debt
  • Seller financing obligations
  • Payroll tax debt (IRS 941)
  • Franchise or licensing obligations

If the debt is tied to a business operation, it can likely be resolved through RISE.

No. MCAs are structured as purchases of future receivables—not loans. This means:

  • State usury laws and interest-rate caps don’t apply.
  • No federal or state laws regulate MCA rates or fees.
  • The only framework that applies is UCC Article 9, which governs secured transactions but does not limit rates or charges.

This regulatory gap is why MCA obligations often spiral out of control, creating unsustainable daily or weekly withdrawals.

When MCA payments consume working capital and make operations unsustainable, an Article 9 restructuring removes MCA from the balance sheet. By restructuring through an Article 9, the MCA liens are eliminated and the business is insulated from future disruption.

This allows the business to exit MCA contracts, preserve operations, and avoid bankruptcy or default, while the guarantor resolves MCA settlements as they continue to earn from the new, healthy operating entity.

  • Debt Settlement: Negotiating with or stalling creditors for a reduced settlementsettlment offer or extended terms. These tactics entail risk to the business itself because they offer no protection from creditor actions, account sweeps, receivables interference or litigation.
  • Debt Resolution: A holistic process that fully protects the business operation through an Article 9 restructuring. This approach positions the debtor to resolve any personally guaranteed liabilities affordably while relaunching the business with a clean balance sheet. It also enables the company to renegotiate terms with vendors and landlords and regain access to new working capital, with prior secured liabilities removed from the operation.

No. One of the biggest myths about restructuring is that you must surrender control of your business operations. In bankruptcy, that’s often true—owners lose control to a trustee or creditors’ committee, and decisions about the company’s future are taken out of the operator’s hands.

Debt resolution in an Article 9 restructuring is different. The Article 9 process resolves toxic debt while keeping the business intact without judicial interference. You continue to serve in whatever operational role is best for the business—while operations, employees, and customer relationships are preserved. Unlike bankruptcy or liquidation, which often leave owners with nothing, debt resolution ensures you remain at the center of the company’s future.

There are two timelines to consider:

  • Business Debt: The Article 9 transaction removes debt from the business operation in about 4–6 weeks, stabilizing the company quickly.
  • Personal Guaranties: Once the business is relaunched, you continue to earn from the healthy operation. Those earnings provide the cash flow to support affordable, structured settlements with creditors—allowing personal guaranties to be resolved over time without bankruptcy.

A core benefit of preserving the business through Article 9 restructuring is that it creates a path to resolve personally guaranteed liabilities without filing personal bankruptcy. Whether the guaranties are tied to SBA loans, MCAs, or other business debt, Second Wind negotiates affordable settlement figures with creditors. Because you can continue to earn from the relaunched business operation, you have a clear path to meeting those settlement obligations over time.

No. The Article 9 restructuring itself does not appear on your personal credit report and has no direct impact. What can affect your credit are the circumstances that led to the restructuring—for example, missed payments or the inability to pay debts in full. However, part of our role is to work proactively with creditors to reach constructive resolutions, which helps minimize negative reporting and preserve your personal credit standing as much as possible.

Yes. Debt resolution is industry-agnostic and applies to businesses of every size. We have worked across sectors such as:

  • Manufacturing and industrial
  • Construction and contracting
  • Retail and e-commerce
  • Healthcare and medical practices
  • Food, beverage, and hospitality
  • Energy and agribusiness
  • Technology and professional services

Whether you are a small local business or a larger enterprise, the RISE program can be tailored to your circumstances.

A central goal of debt resolution is to preserve operating value. That includes:

  • Employees: Jobs are preserved because operations continue uninterrupted under the reorganized entity.
  • Vendors: Article 9 restructuring gives the reorganized business flexibility in how vendor relationships are handled. Critical vendors’ liabilities can be carried over in full to the new entity if necessary, or they can be renegotiated to create more sustainable terms. After all, for a vendor, the only thing worse than not being made whole on past balances is losing a customer entirely. In short, the new business can triage vendor obligations based on their importance, ensuring that key relationships are preserved and the supply chain remains intact. These are simply business decisions, not legal requirements.

Bankruptcy isn’t the fresh start many expect—it often leaves business owners worse off, not better.

  • Myth: Bankruptcy offers a clean slate.
    In reality, most Chapter 11 filings require you to repay nearly 100% of your debt over five years, while your business credit—and often your personal credit—suffers. Even Chapter 7 filings can result in liens or significant unresolved financial issues.
  • Myth: Bankruptcy stops the damage.
    It doesn’t. Legal costs pile up fast, and each creditor objection can result in its own lawsuit or hearing—making bankruptcy a financial drain rather than relief.
  • Myth: You’ll regain control.
    Filing often means surrendering authority to trustees, judges, and creditors. As the process drags on, you lose leverage—and money—while key business decisions remain out of your hands. 
  • Myth: Personal assets are safe.
    Bankruptcy does not inherently shield your personal assets—especially when you’ve signed personal guaranties. If your case converts to Chapter 7, everything you’ve guaranteed could be at risk. 
  • Myth: Bankruptcy failure is rare.
    In fact, Chapter 11 failures are the rule—not the exception. About 90% of SMB (small to medium sized business) filings fail to result in a successful discharge, despite the emotional and financial cost of the process. 

Unlike bankruptcy, debt resolution offers a smarter, ethical alternative—avoiding the courts, legal fees, loss of control, and asset destruction. It preserves value, jobs, and operational continuity while delivering a fair resolution for both owners and creditors.

No. Businesses do not need to retain a lawyer to begin the debt-resolution process. Article 9 restructuring is conducted in the commercial arena, not the legal arena, and is designed as a cooperative process between bank and borrower. Because the transaction itself is non-judicial and collaborative, the adversarial posture that typically leads to litigation is avoided. Second Wind manages the restructuring from start to finish, and while legal professionals may be engaged if specific proceedings arise, the process itself is structured to resolve distress without court involvement.

Yes. In addition to debt resolution, Second Wind works with partners such as Lawrence Financial, one of the nation’s most respected commercial finance brokers, to provide access to new capital when appropriate. This financing can support a turnaround once the business is stabilized, helping to fund growth and ensure long-term sustainability.

Second Wind does not bill hourly or work on open-ended retainers. We refuse to become another financial burden or creditor problem. Instead, before engagement we establish a flat, fixed scope-of-work fee, which is then structured over time to fit comfortably within the cash flow of the reorganized business. This approach ensures costs are transparent, manageable, and aligned with your ability to sustain operations—while also meaning we are staked in the success of your relaunched business.