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Bankruptcy Law
Personal Bankruptcy
Bankruptcy does not solve all money problems. It can actually make some worse. During the ten years that it can be reported on a person’s credit history it will usually result in increased difficulty finding credit, higher interest rates on loans and greater security demanded by the lenders. It does not prevent creditors from taking property that properly secures a debt if the debt remains unpaid. It does not affect criminal prosecution or fines. Except in rare circumstances is does not discharge taxes or student loans. It can get you out of contracts. It does prevent most creditors from pursuing you to collect debts.
Each individual’s financial situation is different and the law requires a bankruptcy attorney to advise clients of the availability of the different bankruptcy chapters under which a filing may take place. Knowing which chapter of bankruptcy to file under is only possible after a detailed analysis of each individual’s situation. In many cases, individuals seeking protection from creditors find out after consultation that they do not need to file bankruptcy at all. If you are considering bankruptcy, call for a free, up to 30-minute consultation.
If you have received a notice from the bankruptcy court that you have been listed as a creditor on a bankruptcy filing do not assume that you will not get paid what is due you. You must, however, take affirmative steps if you want to preserve your rights including filing a proof of claim in the bankruptcy proceeding as set out in the notice. If you have extended credit to someone whom you believe may file bankruptcy and are not sure what you should do to protect yourself, call for a consultation.
Business Bankruptcy
Economic activity is cyclic. Business bankruptcy filings parallel those cyclic ups and downs. Advance planning is the best guard against financial emergencies but it does not guarantee success. One bankruptcy may trigger others and former creditors may become debtors in turn. In uncertain economic times business planning includes bankruptcy planning from both perspectives. It is never too early to begin. Knowing what to do in advance may prevent the transition from one to the other. If one is forced to reorganize, the key to success is often advance planning for the possibility. Successfully reorganizing a business means restructuring both sides of the balance sheet. It requires the continued loyalty of those employees who are selected to remain and continued relationships with those creditors upon whom the business relies for trade and finance. All negotiations during and, especially, in advance of a bankruptcy filing have to be handled carefully and with discretion regardless of one’s position as creditor or debtor. If you need advice or active representation in negotiations or in court, call for an appointment.
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