Bankruptcy

Bankruptcy is a natural part of our debt and credit practice, in which we represent both debtors and creditors on all types of debt, both in bankruptcy and out of bankruptcy.

Debtor representation in bankruptcy:

Frequently, bankruptcy is selected as an option for our client, but not until other means are determined not to give the client the best solution possible given that client’s unique situation.

• We file Chapter 7 bankruptcies, and infrequently Chapter 11s, for debtor clients.  We do not file chapter 13s, but do review client situations and if that option is necessary, and no other bankruptcy or non-bankruptcy option is available that is superior to a chapter 13 filing, we recommend chapter 13 debtor counsel to our client.
• Chapter 7 bankruptcy in general - essentially, in less than four (4) months, a chapter 7 is usually completed for the debtor. Once filed, the chapter 7 stops most creditor contact, allows you to keep exempt property, and allows you to a discharge, or get rid of your unsecured debt. Secured debt can be treated in several ways, depending on the equity in the asset and your ability to pay for it. It may be best to let the collateral go back to the creditor and discharge the debt, or keep it and continue to pay for it, or even pay its value if less than the debt amount, and be released from the debt.

“Exempt Property” is the property you get to keep even though you filed chapter 7.  Most cases result in the debtor keeping all his/her property, and the exemptions vary, depending on which exemption law, federal or state, you choose. 

Chapter 7 can be used to discharge credit card debt, some tax debts, judgments, some liens, some student loans, business debt, bank notes, car loans, repossession and foreclosure debts, and debts owed to governments.  Chapter 7 can stop harassing creditor contact - phone calls, suits, letters, contacts to relatives, and negative reporting on credit reports.

Chapter 7 helps heal your credit report, by zeroing out unpaid/charged-off debts, such that your credit score rebounds.  It allows you to stop looking backward, worrying about the phone, dodging suit process servers and collectors, and get on with living your life not saddled with debts you have no ability to pay.  Chapter 7 allows you more favorable income tax treatment relating to the discharge of debt than non-bankruptcy solutions usually allow.

Some debts are not dischargeable, and you must fully disclose these type debts to your attorney to get complete advise about the ability to get rid of the debt.  Some tax debts (payroll taxes in part, sales taxes, and some income taxes) debts incurred through fraud, embezzlement, intentional acts that cause damage, certain student loans, debts based on false financial statements, may not be dischargeable depending on the facts.   Each case has to be carefully screened for these type debts. 

Some debts you can keep even though you file bankruptcy - mortgage debt, car debt, other secured debt, and other debt, although in some instances you must reaffirm the debt in order to keep the asset that secures the debt.

The biggest mistakes many clients make include:

• waiting too long to talk to an attorney, and finding out creditor actions you want to stop can’t be stopped in time, or only at a higher cost;
• trying to pay the debts in full, exhausting exempted savings and other assets and being left later with few assets and still having to file bankruptcy;
• making bad deals with creditors, defaulting and wasting the money you paid;
• letting a judgment be entered and suffering the creditor garnishing your assets, bank account or in some cases, your wages;
• waiting too long to file bankruptcy, before or after a credit or seizure of assets, when filing sooner could have prevented or erased the seizure and returned the asset to you,
• paying relatives back on notes within one (1) year before filing bankruptcy.

Each client’s financial situation is different.  You need to know your rights, file a bankruptcy at the right time, and receive the relief the Bankruptcy Code provides you.  We have helped clients obtain bankruptcy relief for over 30 years.

Creditor Representation in Bankruptcy

In chapters 7, 13 and 11 cases, we file claims for clients, protect their lease, ownership and debt/lien position, and obtain relief from the bankruptcy stay to obtain control of collateral.

We file objections to exempt property claimed, objection as to discharge of a debt and defend against trustee and debtor actions against creditor claims, and collateral.

We provide defense in fraudulent transfer, preference, and trustee’s sale free and clear of lien litigation.

We represent creditors in general litigation in many types of bankruptcy proceedings.