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Iurillo Law Group, P.A. represents businesses and individuals in Chapter 7, 13 and 11 bankruptcy cases and bankruptcy alternatives such as Assignments for the Benefit of Creditors and workouts. The financial challenges faced by our clients range from the depths of a financial storm to the temporary loss of the wind from their sails. When you meet with one of our attorneys, they will review and analyze the facts of your situation and advise you about your financial alternatives, including whether a bankruptcy filing or insolvency alternative is recommended.
Iurillo Law Group, P.A. handles all aspects of debtor representation, including but not limited to:
Chapters 7, 13 and 11 bankruptcy cases and insolvency alternatives are described generally as follows:
Generally speaking, if an individual is eligible to file a Chapter 7 bankruptcy case, the majority of their unsecured debts will be discharged, or eliminated, in the bankruptcy case, including but not limited to credit card debt, personal loans and medical bills. However, certain bills will not be discharged (or are very difficult to discharge), such as debt owed to the IRS, student loan debt, child support and alimony. With respect to secured debts, such as mortgages on homestead property and car loans, payments to these creditors must remain current if the debtor desires to keep the property. However, if a debtor wishes to surrender a home or car, they can do so with no future obligation to the creditor as the bankruptcy discharges the debt. In addition, while a Chapter 7 bankruptcy case affords many benefits, an individual is only permitted to retain those assets which are deemed exempt under applicable law.
When a business is unable to or does not desire to reorganize and continue to operate, a Chapter 7 business bankruptcy case is a method by which a business may dissolve under the oversight of a bankruptcy trustee. Generally speaking, the owners of the business turn over all assets of the business that are not encumbered by liens to the bankruptcy trustee; the bankruptcy trustee then liquidates those assets and distributes the proceeds to the business' creditors.
A Chapter 13 bankruptcy case is designed for individuals, not corporations or partnerships, who meet certain income and debt criteria. A Chapter 13 bankruptcy case allows an individual to reduce their unsecured debt through a payment plan over a three to five year period. It also allows debtors to retain certain assets which may otherwise be liquidated in a Chapter 7 bankruptcy case or to discharge certain debts which would not be discharged in a Chapter 7 case. Generally speaking, any unsecured debt that remains unpaid at the end of the payment plan is discharged, or eliminated, presuming that all plan payments were timely made. In addition, a Chapter 13 bankruptcy case is an attractive choice for individuals who have fallen into arrears on certain debts, such as mortgages, real estate taxes, child support or car loans because it allows them to force a repayment plan on creditors to repay the arrearages over time or, in some bankruptcy courts, to participate in mediation with the lender on their homestead property.
A Chapter 11 bankruptcy case is available for businesses and certain individuals with financial challenges beyond what they can attain in a Chapter 13 case. During a Chapter 11 reorganization, a business continues to operate or an individual continues to manage their affairs under the supervision of the bankruptcy court. The business may be a corporation, partnership or sole proprietorship. A Chapter 11 bankruptcy case provides a myriad of opportunities for a debtor to restructure its debts and benefits that are not available outside of bankruptcy such as rejecting executory contracts, valuation of secured debt and the automatic stay to creditors' actions to collect debts. However, timing is everything. The longer a struggling business or individual waits, the greater the risk that certain opportunities or benefits of a Chapter 11 reorganization may be lost. The goal of a Chapter 11 bankruptcy case is to have the a plan of reorganization, which is essentially a contract with creditors to repay creditors on more favorable terms than pre-bankruptcy, confirmed by the bankruptcy court. In the alternative, a Chapter 11 bankruptcy case may also be used to liquidate the assets of a debtor.
An Assignment for the Benefit of Creditors, commonly referred to as an ABC, is a non-bankruptcy alternative to eliminate debt. ABC's are governed by state statute and therefore vary from state to state. Title of the assets belonging to the debtor is vested in a trustee for the benefit of all of the debtor/assignor's creditors. The assets are liquidated to pay the claims of creditors under a statutory priority scheme. The ABC process is preferred over the bankruptcy process in certain circumstances and you will be advised of whether this is a possible alternative under your particular circumstances when you meet with one of our attorneys.
In some instances, resolving financial challenges out of court through workouts or dissolution is more advantageous than a bankruptcy filing. Workouts with creditors are negotiated in private and without the statutory and procedural requirements of a bankruptcy case. In addition, the cost for professionals is often much less due to the decreased time spent in court and drafting voluminous required pleadings. In the alternative, a business may decide to cease operations and dissolve or a dispute between partners or stakeholders may lead to dissolution. Our attorneys will work with you to create an exit strategy that provides for the controlled and orderly dissolution of the business in consideration of the consequences of ceasing operations.
Please review our Foreclosure pages for additional information that may be relevant to individual or businesses facing financial challenges. In addition, please review the description of the broad range of clients we commonly represent on our Representative Clients page.
We are a debt relief agency under the United States Bankruptcy Code. We help people file for bankruptcy under the Bankruptcy Code.