Bankruptcy

For businesses and individuals unable to meet their obligations, bankruptcy offers a fresh start. We represent debtors in Chapter 7, Chapter 11, and Chapter 13 bankruptcies.

  • Chapter 7: In a Chapter 7 bankruptcy, assets are liquidated, creditors are paid to the extent covered by the proceeds, and unpaid debts are discharged. Chapter 7 debtors are allowed to earn and keep income during the process and can retain certain assets, including their home and automobile. Chapter 7 is available to individuals and businesses.
  • Chapter 13: Chapter 13 provides for the adjustment of debts for certain individuals allowing them to retain their assets and repay a portion of debt from their income. The key to a Chapter 13 is a plan, proposed by the debtor and approved by the court, to repay creditors, in whole or in part, over a 3-5 year period. Upon the successful completion of the plan, remaining debts are discharged.
  • Chapter 11: In a Chapter 11 proceeding, also known as a business reorganization, the debtor seeks to reorganize and restructure its debt but retain control and management of its assets and business. Chapter 11 has traditionally been used by larger companies, but in February 2020 Subchapter V for Small Business Reorganizations was added to the Bankruptcy Code. As the name implies, Subchapter V is a simplified version of a traditional Chapter 11 bankruptcy for qualifying small businesses.