Bankruptcy

BANKRUPTCY 

No one likes to think they may have to file for bankruptcy.  In fact, the word “bankruptcy” may sound overwhelming to some, even when facing serious money problems.  The law firm of Davis, Ermis & Roberts, P.C. understand this reservation when individuals are contemplating filing for bankruptcy. The federal bankruptcy laws were established to protect consumers and businesses alike while obtaining a fresh start.  Our law firm has helped countless individuals and businesses all over the Dallas-Fort Worth metroplex to do just that.  

While the word “bankruptcy” may be daunting, it is sometimes a necessity and could be the only option to get you back on the right track.  There are a number of reasons for contemplating bankruptcy, such as loss of income after a divorce, death of a spouse, layoff from work, unforeseen expenses such as a lengthy illness or accident, or spiraling credit card debt with high interest rates and penalties and/or medical bills.  In other instances, you may be facing foreclosure of your home, repossession of your automobile or in the process of an IRS levy or wage garnishment.  In any case, meeting with one of our experienced attorneys in person or over the phone is the best way to understand your options, but here is a brief overview of our bankruptcy practice.

Chapter 7

This is the most common form of bankruptcy in the United States and is also referred to as “liquidation” or “straight bankruptcy.” Individuals and businesses, if eligible, can file a Chapter 7 proceeding under the United States Bankruptcy Code. 

A Chapter 7 Bankruptcy is the simplest, quickest and most common form of bankruptcy and is available to most individuals, married couples, corporations and partnerships.  In most cases, the Bankruptcy filer, (the “Debtor”) shall receive a discharge from the United States Bankruptcy Court of his or her personal liability for most dischargeable debts.   

 

Chapter 13

A Chapter 13 Bankruptcy is also referred to as a “reorganization” or “wage earner’s plan”.  It enables individuals with regular income to develop a plan to repay all or part of their debts in installments, over a fixed period of time between thirty-six (36) months and sixty (60) months.  During this time, the Debtor is protected from all collection efforts for the duration of the plan and discharges any unpaid balance or dischargeable debts at the end of the plan. This bankruptcy option is a powerful tool for repayment of any secured debts such as mortgage arrears or automobiles.  In addition, this bankruptcy will stop the accrual of pre-petition penalties and interest while repaying federal tax liability.   

This form of bankruptcy acts like a consolidation loan under which the Debtor makes the monthly plan payments to the assigned Chapter 13 Trustee who then in turns distributes the payments to the Debtor’s creditors in order of priority, until the Debtor completes the plan and receives a discharge.

Chapter 11

This form of bankruptcy is frequently referred to as a “reorganization” bankruptcy and is typically used to reorganize a business, which may be a corporation, sole proprietorship, or partnership.  A Chapter 11 Bankruptcy is quite complex and requires a Debtor-in-Possession account to be utilized by the entity while in the process of reorganizing.  Due to the complexity and time consuming nature of this type of bankruptcy proceeding, this is not often utilized for smaller companies.

In order to determine if bankruptcy is a viable option, you need a knowledgeable and skilled attorney to guide you through the process. Please do not hesitate to call us for a free consultation today. 

Call 817-265-8832 or 972-263-5922 today. Do not wait any longer.

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If you need to speak to a bankruptcy attorney to determine if bankruptcy is an option for you, please call 817-265-8832 or 972-263-5922 today.