Services

(click here for testimonials)

Chapter 7 bankruptcy

This is the bedrock of bankruptcy practice. In a chapter 7, or liquidation, bankruptcy, the debtor declares all his assets, all his debts, his income and his expenses. The law allows the debtor to keep some assets. A bankruptcy trustee takes legal ownership of excess assets, and determines whether the debtor is making too much money to qualify for this type of relief. This is quick and usually fairly simple. However, pitfalls abound in even the simplest cases. It is important to have an experienced attorney to advise you on what transactions to take before the bankruptcy, to prepare your papers so there are as few problems as possible, and to negotiate with the bankruptcy trustee.

Chapter 13 bankruptcy

In a chapter 13 case, the debtor pledges the next five years’ income to the bankruptcy plan. The court determines what expenses to allow the debtor, and a trustee administers payments to creditors. Depending on the type of debt and the debtor’s income, creditors may receive no payment, a few cents on the dollar, or full payment. This type of case is more complicated than a chapter 7, but often allows results not seen in chapter 7s, such as stripping a second lien from a home. Very few debtors can understand and navigate the requirements of a chapter 13 bankruptcy on their own. An experienced attorney can help a great deal.

Chapter 11 bankruptcy

Chapter 11 cases allow the flexibility needed by larger entities and individuals with several properties or an ongoing business. But chapter 11 cases also require oversight. The court must approve: the hiring of attorneys, accountants, brokers, and other professionals; the use of a property’s rents to pay anything other than the mortgage, including electric bills or property taxes; the continued employment of key personnel; payment of any expense; and other important processes to keep the debtor alive or adjust the debtor-creditor relationship.

Chapter 12 – The Family Farmer Bankruptcy

Chapter 12 provides for the reorganization or “adjustment” of the debts of a family farmer or family fisherman with regular income.  Although modeled after chapter 13, there are important distinctions: (1) Chapter 12  may be filed by individuals as well as family partnerships and corporations; (2) eligibility criteria include a limit on unsecured debt equal to the chapter 13 maximum of approximately $360,475 but a significantly greater secured debt limitation of approximately $2,792,650 (all debt limitations in both chapters are periodically adjusted); (3) although a chapter 13 debtor must have sufficient “regular income” to make monthly plan payments, a chapter 12 debtor need only have enough “regular annual income” from irregular or seasonal income to support annual plan payments; (4) a chapter 12 plan must be filed with 90 days of the filing date instead of the 14 days mandated in chapter 13; (5) there is no deadline by which a chapter 12 debtor must begin making plan payments (in chapter 13, the first payment is due within 30 days after the plan is filed); and (6) in contrast to chapter 13, a chapter 12 debtor may extend payments on allowed secured claims beyond the plan period.  Chapter 12 was originally enacted in 1986 as a temporary provision giving family farmers in bankruptcy “a fighting chance to reorganize their debts and keep their land.”  Wiese v. Community Bank of Central Wis. (7th Cir.2009) 552 F.3d 584, 586.  Originally set to expire in 1993, chapter 12 was repeatedly extended until 2005 when it was made permanent and broadened to include families engaged in commercial fishing.

Challenging bankruptcy discharges – nondischargeability actions

The bankruptcy code allows a fresh start to the honest debtor. When the debtor is not honest, however, a creditor may challenge the discharge of a debt or the debtor’s right to a discharge at all. The creditor files suit (citing 11 U.S.C. 523 or 727) and seeks a trial of its allegations in the bankruptcy court. The court holds the trial under the Federal Rules of Evidence and a variety of national and local procedural rules. Our attorneys have gotten favorable results in these types of trials.

Collecting from a bankrupt debtor – relief from the automatic stay

When a creditor seeks to foreclose on a debtor’s property, it needs to seek permission from the bankruptcy court to do so under 11 U.S.C. Section 362. Our attorneys have handled these cases successfully.

Tax Issues

We have extensive experience resolving issues with the IRS and the state taxing authorities, including responding to audits, negotiating payment terms, removing lien notices, discharging tax liabilities in bankruptcy, and offers in compromise.