Bankruptcy Law: Pletz and Reed, P.C., Attorneys at Law
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September 24, 2017

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Bankruptcy Law

Pletz and Reed has represented debtors and creditors in bankruptcy proceedings for over 25 years. The firm has experience in both consumer and business bankruptcies, including Chapters 7, 9, 11, 12 and 13. Our attorneys will meet with you and explain the bankruptcy process, review your personal situation, answer your questions and advise you as to what you can expect in connection with the filing of a bankruptcy action. We will also explain what you can expect to happen if you do not need or want to file bankruptcy. Bankruptcy is an option, mandated by The Constitution of the United States and created by the United States Congress. If you have financial problems, you need to understand your bankruptcy options so that you can make an informed decision as to how to proceed.

See Bankruptcy Frequently Asked Questions

Chapter 7

The most common type of bankruptcy is a consumer Chapter 7. An individual or a married couple struggling to pay monthly bills, overwhelmed by calls from collection agencies and unable to get out of debt are prime candidates for a Chapter 7 bankruptcy. Sometimes referred to as a liquidation or “total bankruptcy”, a Chapter 7 filing can lead to the filing party, or “Debtor”, receiving a discharge from most debts. A bankruptcy trustee is appointed in each Chapter 7 to review the debtor’s assets, and a small percentage of Chapter 7 debtors are required to surrender some assets to the trustee to be sold for the benefit of their creditors. However, most debtors keep all of their assets by claiming them as exempt.

Chapter 9

This section of the bankruptcy code allows municipalities (counties, cities, towns) to, under limited circumstances, seek relief under the bankruptcy code. Fortunately, the use of Chapter 9 has been rare.

Chapter 11

Generally considered business reorganizations, Chapter 11 bankruptcy can be filed by corporations, limited liability companies (LLCs), partnerships or individuals who are struggling to satisfy their creditors. The debtor will propose a “Plan of Reorganization” which provides a schedule of payments to the creditors. The plan might include reducing the amount of secured debt to a creditor so that it is equal to the value of that creditor’s collateral and treating any remaining debt as unsecured. The unsecured portion will usually be repaid at only a percentage of the actual amount of the debt.

Chapter 12

Chapter 12 was created especially for farmers in order to allow them to reorganize while continuing to operate their farms. Special eligibility requirements exist but basically at least one-half of the debt must be farm related and at least one-half of the family income must come from farm sources. Repayment plans are created in a “Plan of Reorganization” which, once approved by the court, is binding on all parties.

Chapter 13

Some people make sufficient income to be able to pay some of their debts, but cannot pay them all and are unable to meet the payment expectations of the collection agencies. Chapter 13 provides an opportunity to go on a more reasonable repayment plan, a personal reorganization, for from three to five years. It is also commonly used in order to stop foreclosures and allow for the catching up on past due installment payments on home loans.

 

DIsclaimer: The assistance by Pletzand Reed, P.C. may involve bankruptcy relief under title 11 U.S.C. ยง 28. We are a debt relief agency.We help people file for bankruptcy relief under the bankruptcy code.