BANKRUPTCY
The Bankruptcy Code was enacted by Congress to assist people and companies that are overwhelmed by debt or are facing a financial crisis. If you qualify, the bankruptcy laws afford you protection against creditor harassment and afford you a chance to get a fresh start. Each situation is unique, but federal law protects you from harassing creditor calls, potential repossessions, foreclosures, wage garnishment, judgments, lawsuits and IRS levies. The bankruptcy laws afford you the opportunity to either reorganize or sell your assets and obtain a discharge of debts.
CHAPTER 11
The Schreiber Law Firm, LLC represents companies in financial distress. The firm's practice includes out-of-court debt restructurings, Chapter 11 reorganizations in courts throughout the United States, and receiverships. Chapter 11 allows a company to remain in business while it addresses its financial problems. Chapter 11 is based upon the premise that a business, even though not currently able to meet its obligations, can often be restructured so that creditors and stockholders will receive more from future profits (or a sale of the restructured company) than from a forced liquidation of assets by a bankruptcy trustee under Chapter 7 of the Bankruptcy Code. An ailing company will typically consider Chapter 11 if its business, or some portion of it, is likely to be worth substantially more as a going concern than on the auction block. Chapter 11 also may be used as an orderly way to liquidate a company's assets and wind up its affairs.
CHAPTER 13
Chapter 13 is often referred to as a wage earner plan. Chapter 13 is used to stop repossessions and foreclosures, but it can also effectively reorganize your debt load by lumping all of your monthly bills into one monthly payment.
Under a Chapter 13 Plan, you make one monthly payment to a court appointed Trustee who, in turn, distributes payments to creditors. You must, of course, continue to make your regular living expense payments such as rent, utilities and insurance.
Chapter 13 is a valuable tool for consumers who have fallen behind on mortgage or car payments, as it allows them time to catch up delinquencies and immediately stops foreclosures and repossessions. Chapter 13 is also valuable to consumers wishing to consolidate their bills or who are facing difficulties with the IRS.
CHAPTER 7
Chapter 7 is sometimes referred to as straight bankruptcy or liquidation. This is because (contingent on your specific situation and assets) a Chapter 7 discharge Order discharges your unsecured debt. Whether a debt is secured or unsecured can be confusing and should be discussed with your attorney.
Generally, a debt is secured if it was incurred to buy specific collateral in which the creditor retains a security interest and can repossess the item. Examples of secured debt include your house, vehicle, furniture and appliances. These debts are often reorganized in a Chapter 13.
Chapter 7 discharges your debts that are not secured. Examples of unsecured debt include most credit card debt, personal loans and medical bills. Chapter 7 allows you to discharge your unsecured debts and keep all of your exempt assets such as houses, cars and retirement accounts. Chapter 7 affords you the opportunity to make a clean start without the burden of bills.
BANKRUPTCY LITIGATION
Mr. Schreiber has litigated hundreds of cases in the bankruptcy courts, including but not limited to Motions for Relief from Stay.
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