Iurillo
& Associates, P.A. represents debtors in the Middle District of Florida in Chapter
7, 11 and 13 bankruptcies. Our attorneys have represented debtors with a range
of financial difficulties from publicly held companies to small corporations
and individuals. We handle all aspects of debtor representation including but
not limited to:
Chapter 7 - Consumer Chapter 13 Chapter 11
The decision of what type of bankruptcy to file is based on a culmination of
factors and requires a complete analysis by one of our attorneys. Chapters 7,
11 and 13 are described generally as follows:
Chapter 7 bankruptcies, generally speaking, provide the consumer with the
right to eliminate all unsecured debt (e.g. credit cards, medical bills, etc.).
Chapter 7 does not eliminate secured debt and the Chapter 7 debtor must continue
to keep secured accounts (e.g. home mortgage, car loans, etc.) current or
face foreclosure or repossession. Certain debts are non-dischargable in a
Chapter 7, including but not limited to, taxes less than three (3) years old,
student loans (unless the debtor can demonstrate an “undue hardship”
or the if the program under which the debt was incurred was a for-profit,
private entity), child support and alimony and any debt procured by fraud.
Chapter 7 debtors are also entitled to numerous “exemptions” which
allow debtors to keep their assets, including but not limited to, their homestead
(subject to certain limitations), $1000.00 of personal property ($200.00 for
joint debtors) and $1000.00 of equity in a motor vehicle (total per debtor).
Some businesses are unable to or do not desire to reorganize and continue to operate. Chapter 7 liquidation is a method by which a corporation may dissolve under the oversight of a trustee. Essentially, the owners of the business turnover all of the assets of the business which are not encumbered by liens of secured creditors to the trustee who liquidates those assets and distributes the proceeds to creditors. The Chapter 7 liquidation allows for an orderly closing of the business and limits creditors' claims to monies available from the bankruptcy estate..
Chapter 13 is reorganization for individuals or small proprietary business owners (not corporations or partnerships) who meet certain income and debt criteria. It allows a reduction of unsecured debt through a payment plan while retaining certain assets which may otherwise be liquidated by a Chapter 7 trustee. In addition, Chapter 13 is an attractive choice for debtors who have fallen into arrears on their mortgages, real estate taxes or car loans as it allows debtors to force a repayment plan on creditors to repay those arrearages over time. Income tax debt may also be repaid similarly.
Chapter 11 is available for businesses and certain consumers with large debts and assets who do not meet the strict criteria of Chapter 13 to reorganize their debts. The business may be a corporation, partnership or sole proprietorship. Chapter 11 allows the debtor to restructure its debts and to get out from under burdensome contracts or leases. During the reorganization, a business may continue to operate under the supervision of the Bankruptcy Court and its appointees. The goal of a Chapter 11 is to have the debtor's Plan of Reorganization confirmed by the Bankruptcy Court. The Plan of Reorganization is basically a contract with creditors on how debts will be repaid. Chapter 11 may also be used to liquidate the assets of a debtor and may result in a greater distribution to the creditors than a Chapter 7.
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