BANKRUPTCY

To the uninitiated, bankruptcy presents policies and tactics contrary to the usual conduct followed in pursuing the collection of debts. Traditional common law placed a premium upon swift and early action in order to gain priority in obtaining repayment. In contrast, bankruptcy tends to emphasize equality of treatment based upon classification of debt and not upon any race to the courthouse. While this concept may initially seem unfair, the process carries out one of the primary purpose of bankruptcy law, namely, the relief of the debtor from oppressive debt so that the debtor can obtain a fresh start.

      Bankruptcy, at the outset, is purely statutory, based initially upon the United States Bankruptcy Act of 1898, and more recently upon the Bankruptcy Amendments and Federal Judgeship Act of 1984 and the Banruptcy Abuse Prevention and Consumer Protection Act of 2005. Beyond the statutes, the practice of bankruptcy law involves familiarity with the Bankruptcy Rules promulgated by the United States Supreme Court and the thousands of court case decisions which have interpreted the statutes and the Rules.

      There are four basic forms of relief offered by the law of bankruptcy. A Chapter 7 case involves a liquidation of all non-exempt assets. The cash obtained from the liquidation is distributed to the creditors by formula, and the debtor is discharged from further personal liability. A Chapter 11 case is usually a reorganization. The debtor, which may be a corporation, a partnership or an individual, is charged with devising and obtaining court approval of a plan for payment of debts from future earnings in order to satisfy the creditors and obtain the relief from the debts. A Chapter 13 case is open to individuals with a regular source of income and a limited amount of debt. Again, there is no liquidation, but rather a court-approved arrangement for payment of debts in the future. Chapter 12 cases are reorganization cases for family farmers and family fishing operation

     The firm's bankruptcy practice is limited to representing creditors. The firm is not a Debt Relief Agency and does not represent persons or firms filing bankruptcy.