When It Comes to Bankruptcy, You're Not Alone

According to the AACER.com website (automated access to court electronic records), almost 1.1 million Americans filed for bankruptcy in 2008.  In 2009, bankruptcy filings by businesses increased by 78% in the first quarter alone.

If you’re in financial difficulty, you’re not alone.  Whether your needs are for a personal bankruptcy or a business bankruptcy, you should contact Thompson Law Group, PC today.

Don’t wait too long.  Life should be more than a series of harassing phone calls from creditors, enduring the stress of mounting debt, and the fear you are about to lose everything.  It happens to well run businesses, conscientious seniors, and hard driving professionals alike.  The storms and whirlpools of the economy affect us all.

• Act now to save your home from foreclosure
• Stop sinking hundreds or thousands of dollars into unsecured debt
• Restructure your finances and budget for a renewed chance at life

Bankruptcy law is one of our main practice areas. Thompson Law Group, PC is a member of NACBA, the National Association of Consumer Bankruptcy Attorneys, the only national organization dedicated to serving the needs of and protecting the rights of consumer debtors in bankruptcy. 

Fighting Misconceptions about Bankruptcy

Yes, bankruptcy law underwent changes with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.  Nevertheless, bankruptcy remains a viable option for anyone who needs financial assistance.

Bankruptcy is neither too difficult nor too expensive.  And you’re not going to lose everything you have.  There are many myths about bankruptcy, and you need a qualified bankruptcy attorney to review your particular situation and recommend the proper type of bankruptcy, as well as keep you informed as to how your bankruptcy affects your debts, your credit, your home, and your spouse.

Contact Thompson Law Group, PC  today, or complete our short Intake Form, providing our partners with a basic sense of your needs and situation.  We’ll be in contact shortly.

Types of Bankruptcy

There are four kinds of bankruptcy proceedings commonly referenced by the different chapters of the federal bankruptcy code:

Chapter 7 Bankruptcy

Chapter 7 is the most common type of bankruptcy proceeding.  Chapter 7 is available to individuals, married couples, corporations and partnerships.  In this proceeding, individual debtors may seek a discharge of their unsecured debts, meaning the debts are extinguished by order of the bankruptcy court at the end of the proceeding.  Unless there are problems in the case, individual debtors are usually able to get a discharge within four to six months of filing the case.

As in all bankruptcy filings, the filing of a Chapter 7 proceeding imposes an automatic stay on all creditors, which prevents them from trying to collect their debts without first getting approval of the bankruptcy court.  A bankruptcy trustee is appointed to the debtor's case, who controls all of the debtor's assets.  All creditors must be given notice of the proceeding.

A Chapter 7 bankruptcy, while discharging various debts, also allows individuals to protect their assets from liquidation through a set of exemptions provided for under the applicable federal and state laws.  Typically, the exemptions provided by law allow a individual to keep all of their assets. 

Contact an experienced bankruptcy attorney at Thompson Law Group, PC to determine your options regarding a Chapter 7 bankruptcy filing. 

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Chapter 13 Bankruptcy

Chapter 13 is a repayment plan for individuals only.  It protects the debtor from collection action during the case and discharges any unpaid balance of dischargeable debts at the end of the plan.  A Chapter 13 Bankruptcy is a powerful tool for debtors to regain control of their financial lives and to get a meaningful fresh start.  The debtor keeps his property and makes regular payments to the Chapter 13 trustee out of future income, to pay creditors over time (3-5 years depending on the each individual's particular circumstances).

Chapter 13 also provides a mechanism for individuals to prevent foreclosures and repossessions, while catching up on their secured debts.

Contact an experienced bankruptcy attorney at Thompson Law Group, PC to determine your options regarding a Chapter 13 bankruptcy filing. 

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Chapter 11 Bankruptcy

Chapter 11 is a reorganization proceeding, typically for corporations or partnerships.  A business in financial trouble may elect to file a Chapter 11 petition to try to reorganize outstanding debts and continue to operate the business.  With Chapter 11 there's an automatic stay, just like any other bankruptcy proceeding.

Unlike a Chapter 7 proceeding, a business filing a Chapter 11 proceeding will become a debtor-in-possession, and there will initially be no bankruptcy trustee appointed.  The debtor-in-possession is given an opportunity to prepare a plan of reorganization.  If a plan is approved and confirmed by the court, it binds both the debtor and the creditors to its terms of repayment.  Under the plan, the debtor-in-possession can reduce debts by repaying a portion of its obligations and discharging others. 

A Chapter 11 bankruptcy can also terminate burdensome contracts and leases, recover assets, and rescale operations to get back to profitability. Under Chapter 11, a business normally goes through a consolidation period and comes away with a reduced debt load and a reorganized business.

Plans can call for repayment out of future profits, sales of some or all of the assets, or a merger or recapitalization.  Generally, the plan of reorganization must provide for paying creditors at least as much as they would have been entitled to be paid in a Chapter 7 liquidation proceeding.

Contact an experienced bankruptcy attorney at Thompson Law Group, PC to determine your options regarding a Chapter 11 bankruptcy filing. 

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Chapter 12 Bankruptcy

Chapter 12 is a simplified reorganization for family farmers, modeled after Chapter 13.  The debtor retains his property and pays creditors out of future income.

Contact an experienced bankruptcy attorney at Thompson Law Group, PC to determine your options regarding a Chapter 12 bankruptcy filing. 

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Attentive Lawyers / Effective Solutions

Whether your needs involve a personal bankruptcy or a business bankruptcy, you’ll find the attention you receive at Thompson Law Group, PC refreshing.  You’re more than a case file, and we know you deserve better than a “cookie cutter” solution.  By working with you to develop a thorough understanding of your needs, we can provide innovative and dynamic legal representation, the best professional legal services possible.  Learn more About Thompson Law Group, PC

Service Area

A Pittsburgh law firm providing a wide range of services, Thompson Law Group, PC assists clients throughout Allegheny and Westmoreland Counties, including Pittsburgh, Greensburg and surrounding areas and the communities of Coraopolis, Cranberry, Greensburg, Monroeville, Moon, Mt. Lebanon, Murrysville, North Hills, Oakland, South Hills, Upper St Clair, and more.

Disclaimer

Please visit our Disclaimer Page for information on the materials presented by this website and the attorney-client privilege. The images on this sight do not depict real clients or client interaction.

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