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Bankruptcy and Reorganization

Bankruptcy law is a federal legal process for debtors seeking to eliminate or repay their debts. Bankruptcy’s governing federal statutory law is contained in Title 11 of the U.S. Code. It provides for a federal system of statutes and courts which permits debtors to place their financial affairs under the control of the bankruptcy court. Our years of experience representing companies in bankruptcy proceedings allows the firm to provide solutions to companies dealing with the complexities of bankruptcy and reorganization.

Bankruptcy court is the specialized federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, which are branches of the District Courts of the U.S., and each one’s territory covers several counties.

Bankruptcy laws help people who can no longer pay their creditors get a fresh start – by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect troubled businesses and provide for orderly distributions to business creditors through reorganization or liquidation.

Most cases are filed under the three main chapters of the Bankruptcy Code – Chapter 7, Chapter 11, and Chapter 13. Federal courts have exclusive jurisdiction over bankruptcy cases. This means that a bankruptcy case cannot be filed in a state court.

The most common types of personal bankruptcies for individuals are Chapter 7, which allows debtors to wipe out many debts they’ve accumulated in exchange for giving up non-exempt property to be sold to repay creditors, and Chapter 13, which allows debtors to keep all of their property and repay all or a portion of their debts over three to five years. Businesses can file for Chapter 7 or Chapter 11 bankruptcy. Chapter 11 allows a company to reorganize its debt to stay in business and use business income to pay its debts.
 
 

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