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The Bankruptcy and Creditors' Rights Group provides practical and thorough representation to individuals and businesses in the areas of bankruptcy planning, reorganization, bankruptcy proceedings and business-to-business collections. The ability to provide rational but compassionate personal advice to consumers and to illustrate real-world financial consequences and solutions to businesses allows the Firm to provide value-added debtor representation. The Groups aggressive representation of creditors allows us to successfully protect the assets of and assert rights thereto of the individuals and businesses owed compensation by an insolvent party or debtor.

Consumer Bankruptcy: We represent individuals experiencing significant financial distress. We address issues to ensure that the client retains most if not all of his assets. In fact, most cases are "no-asset" cases which means that the debtor retains possession of any exempt or encumbered assets they own. Bankruptcy may also be utilized to avert a foreclosure sale, to protect assets and to avoid and discharge judgments. Typically, consumers file the following types of bankruptcy cases: (1) Chapter 7 Personal Liquidation, and (2) Chapter 13 Wage-Earners Reorganization.

Business Bankruptcy: We also represent businesses that are experiencing financial distress as a result of a significant debt load. In this instance, bankruptcy may be used to decrease expenses and to opt out of onerous contracts and leases. Businesses with acceptable cash flow may reorganize and continue on to profitability while others are forced to liquidate. Typically, businesses file the following types of bankruptcy cases: (1) Chapter 7 Business Liquidation, and (2) Chapter 11 Business Reorganization.

Creditors' Rights: The Group provides aggressive legal representation to creditors involved in bankruptcy proceedings, including, but not limited to, obtaining relief from the automatic stay and engaging in appropriate bankruptcy litigation. We successfully guide creditors through the bankruptcy process and aid them in asserting their rights to assets and monies owed. In addition, we engage in business-to-business collections on behalf of clients owed monies for services or products provided to other businesses in the course of business.

Commonly Asked Questions

Q: Will I lose my property?

A: In most cases, no. The law sets limits as to how much property a person can keep if they want to discharge some or all of their debts. These limits are not meant to leave the debtor destitute but to ensure the debtor does not have excess assets that could be sold to satisfy some or all of the debtor's debts. These laws vary from state to state and may depend on where you previously lived.

Q: How long will the bankruptcy be on my credit report?

A: The fact that you filed a bankruptcy petition will be on your report for ten years. However, this by no means limits what credit is extended to you. A person who consistently pays bills on time and is prudent with their credit usually regains an average credit rating within a few years. Factors that influence your credit rating are your past history with creditors and service providers, current level of income, how long you have been with your present employer, and even your current credit limits. You can get a free copy of your credit report once a year at https://www.annualcreditreport.com/cra/index.jsp. This information should be absolutely free. You will need to supply personal information to confirm your identity. Beware of imitations that ask for credit card numbers or give you a free trial.

Q: Will I have to pay my creditors?

A: It depends. The Bankruptcy Code looks at all aspects of your finances to determine if you should pay anything to your creditors. People with high income or a lot of assets typically have to pay something back to their creditors. People with lower than average income and few assets typically pay little or nothing back to their creditors. Consulting a bankruptcy attorney is the only way to know how you would be treated under the Bankruptcy Code.

Q: What is the difference between Chapter 7 and Chapter 13?

A: A Chapter 7 Bankruptcy is also called a liquidation case. This means a debtor does not have the income to pay any of their creditors and any excess assets are liquidated for the benefit of the creditors. A Chapter 7 case typically lasts 6 months. A Bankruptcy Petition filed under Chapter 13 of the Bankruptcy Code is also called a wage earner plan. This means the debtor has sufficient income to pay all or a percentage of their debts over time. A common Chapter 13 plan requires the debtor to pay a monthly sum to the Trustee over three to five years.

Q: Who determines what chapter I should file?

A: Most of the time, a debtor and his or her counsel can determine what chapter is best for the debtor. Rarely, the Trustee will uncover new information which changes which chapter the debtor is eligible for. This is why it is extremely important to tell your attorney everything, even if you think it is not important or relevant.

Q: Who is the Trustee?

A: The Trustee is an attorney appointed by the United States Trustee's Office to oversee the administration of your case. You will meet your Trustee at your meeting of creditors, commonly called a 341 Hearing. In a Chapter 13 case the Trustee will collect funds from the debtor and distribute the funds according to the debtor's court approved plan.

Q: Will I have to go to court?

A: No. You will have to meet with the Trustee at least once. This meeting may or may not be at the court house, but is never in a court room. You may be required to appear in court if there are problems or disagreements about your case after your meeting with the Trustee.

Q: What do I have to include in my Petition?

A: A debtor must disclose everything of a financial nature. All assets, debts, income and expenses must be disclosed. This includes any interest in real or personal property, lawsuits, inheritances, and property you are holding for someone else or you intend to give away.

Q: Can I keep my favorite credit card?

A: No. Even if you have faithfully paid the credit card bill, once you decide to file for bankruptcy protection, you should stop using all credit cards. You will find that once you file for protection, most creditors will automatically close your accounts.

Q: What is the means test?

A: The means test is a formula found in the Bankruptcy Code that determines if a person is required to make payments to their creditors, how much and for how long. This formula is complex and requires all sorts of financial information. A bankruptcy attorney can apply this formula to your situation to help you determine what chapter to file under.

Q: What if I cannot pay the amount required of me?

A: Chapter 13 plans are flexible and can often accommodate a debtor's circumstances. It is also possible to convert a case from one chapter to another.

Q: How am I supposed to pay an attorney when I cannot pay my bills?

A: When a person decides for certain they are going to file a Bankruptcy Petition, they should reconsider their obligations in light of the filing. In some cases, a debtor can pay his attorney after he files for bankruptcy protection. In other cases, a debtor may not be able to file immediately and must wait until his attorneys fees are paid in full.

Q: Can I discharge my student loans?

A: Most likely, no. Simply filing a Bankruptcy Petition is not enough to discharge student loans. A debtor must file a suit against the creditor, called an Adversary Proceeding, to determine dischargability of student loans. The standard for discharging student loans is very high. A debtor must prove it would be an undue hardship not to discharge the student loans. A bankruptcy attorney can give you advice on your specific circumstances as to whether you might meet this standard.

Q: What is credit counseling?

A: Credit counseling, under the Bankruptcy Code, is a prerequisite for filing a Bankruptcy Petition. It is simply a one-time class a debtor must attend in person, over the phone or over the internet that assesses the debtor's financial situation and gives alternatives to filing bankruptcy. Some services also offer helpful financial advice and a budget analysis. You can get more information at http://www.usdoj.gov/ust/eo/bapcpa/ccde/index.htm

Q: What is debtor education?

A: Debtor education, under the Bankruptcy Code, is a prerequisite to receiving a discharge. This is another one-time class a debtor can take in person, over the phone or over the internet. The main purpose of debtor education is to give the debtor the information they need to avoid financial pitfalls in the future. You can get more information at http://www.usdoj.gov/ust/eo/bapcpa/ccde/index.htm.

Q: I don't want to file bankruptcy. How do I know if I can avoid it?

A: Most people that file bankruptcy do not want to file. It is their last resort. A foreclosure on a personal residence, money judgments or imminent repossession may be reasons a person is forced to file a Bankruptcy Petition. Low income or large unsecured debt may also force a person to file for bankruptcy protection. Anyone who is considering filing bankruptcy should consult a bankruptcy attorney who can advise them of the law and how it would affect them.