Bankruptcy and Business Reorganization
Individual bankruptcy
Bankruptcy is often a very effective tool for
obtaining relief from oppressive debt. The benefits of filing should be reviewed
on a case-by-case basis with a full review of all other options. Special
attention should be given to whether the debtor will receive a discharge, and
the effects of the discharge. Spouses of debtors often receive indirect relief
from a bankruptcy discharge, without having to file a petition. Bankruptcy can
be helpful in dealing with secured creditors, and often allows a debtor to
retain property and reduce his payments. The co-debtor stay for consumer debts
in Chapter 13 provides some relief for a debtor's co-signers.
Business
bankruptcy/reorganization
The United States Bankruptcy Code
provides unique opportunities and risks. Chapter 11 provides debtors with the
opportunity to assume desirable leases and executory contracts, while allowing
the rejection of those that are not profitable. Suppliers to a debtor may be
required to return payments made for goods or services provided under a theory
of preferential transfer. Obligations can be settled for a fraction of what is
owed and now viable business can move forward freed of the debt burden existing
from start-up or less profitable times.
Our lawyers are thoroughly familiar with State and Federal law
and proceedings in all phases of bankruptcy and reorganization. We handle
all phases of bankruptcy and debtor-creditor litigation, including Chapter 7, 13
and 11 filings, automatic stay, preference claims, other avoidable transfers,
and issues of collection, foreclosure and recourse against guarantors.
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