Bankruptcy
If you are even condsidering bankruptcy as an individual, family, or business, YOU NEED TO CALL MY OFFICE TODAY! If you have general questions, please contact me at john@johnhgraves.com and I will reply as quickly as possible. No attorney client relationship will exist until I am formally retained. Let me tell you a little about bankrutpcy and the bankrutpcy process.
We are a debt relief agency, we help people file for bankruptcy protection.
Bankruptcy is a legal option that affords a debtor in trouble the ability to reorganize or start with a clean slate. The Bankruptcy Code, consumer protection laws, and state exemption laws all affect the options available individuals or businesses in overwhelming debt. Because the Bankruptcy Code has recently undergone major changes, you need counsel that is experienced in helping people like you. The Law Office of John H. Graves, PLLC has helped people from all over the State of Oklahoma seek the protections allowed by bankruptcy law. If you need help regarding bankrutpcy law, call the office today.
Individual Liquidation - Chapter 7
In a Chapter 7 bankruptcy, the debtor's assets are liquidated (sold) and the proceeds are distributed to creditors. Partnerships, sole proprietorships and corporations, in addition to individuals, are eligible to file under Chapter 7. An individual's home, cars, and many other property items can be kept by the individual pursuant to bankruptcy law. After a Chapter 7 discharge, substantially all of a debtor's unsecured debt will likely be wiped out. Unlike individuals, business entities are not eligible to receive a discharge. Chapter 7 business liquidations are conducted in significantly the same manner as Chapter 7 consumer bankruptcies — many of the business's assets are sold and the proceeds are divided among the company's creditors. Partnerships or corporations that wish to keep doing business may decide that Chapter 7 is not the best option because after liquidation and distribution, the business ceases to exist. If you run a business that is facing financial difficulty and are considering bankruptcy, talk to an attorney about your options.
Individual Reorganization - Chapter 13
In a Chapter 13 bankruptcy, there is a reorganization of an individual or family's debt. Chapter 13 generally applies to individual consumers. Chapter 13 plans allow for one payment to be made to the Trustee for a period of sixty months. Chapter 13 reorganizations allow for the discharge of unsecured debt and restructure or secured debt. Corporations and partnerships cannot file under Chapter 13, but self-employed individuals and individuals who own unincorporated businesses are eligible for Chapter 13. The debtor must have less than $307,675 in unsecured debt and $922,975 in secured debt, however, in order to be eligible for Chapter 13. These amounts are adjusted periodically. If you are an individual or own an unincorporated business that is having financial difficulty, Chapter 13 bankruptcy may be an option.
Business Bankruptcy - An Overview
The primary purpose of bankruptcy is to deal with debts that cannot be paid in full without some sort of court supervised plan. Business entities can file for liquidation pursuant to Chapter 7 or seek protection under Chapter 11. The debtor may wish to reorganize its debt and enter into a repayment plan while continuing to operate its business. In most cases, a business debtor will voluntarily initiate bankruptcy proceedings by filing a petition. In rare cases, a creditor will initiate a bankruptcy proceeding so as to secure some form of payment or a plan that has judicial approval. This is referred to as involuntary bankruptcy. If your business is facing financial difficulty and you are considering filing for bankruptcy, please call us today for a consultation.
Business Reorganization - Chapter 11
Chapter 11 allows for the reorganization of business debts. Chapter 11 also allows a business to continue to carry on routine operations while going through the reorganization. Corporations, partnerships and sole proprietorships are all eligible for Chapter 11 reorganization. Filing for protection of Chapter 11 does not put at risk the personal assets of the business shareholders. Because a sole proprietorship does not have a separate legal identity from its owner, both the personal and business assets of a sole proprietor are involved in a Chapter 11 case. A partnership is separate from its partners, but the partners' personal assets may be used to pay creditors in a Chapter 11 case in some instances. An experienced bankruptcy attorney can help you determine whether Chapter 11 is a good option for your business.
Useful Links
http://www.usdoj.gov/ust/ - The United States Trustee's Office supervises bankruptcy administration.
http://www.law.cornell.edu/ - Access the text of the Bankruptcy Code by searching Title 11.
http://www.sba.gov/ - The U.S. Small Business Administration