Posts Tagged ‘bankruptcy’
Debt Restructuring: Better Than Bankruptcy
January 11, 2011 | 
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For all struggling companies, the dead-last option before pulling the plug on a business should be Chapter 11 bankruptcy. According to recent statistics, approximately four out of every five businesses that file for bankruptcy are not able to make a comeback.
Many experts feel a much more reliable alternative to bankruptcy is debt restructuring, which allows companies who are facing financial issues to negotiate with creditors to modify its delinquent debts in order to continue operations. Debt restructuring keeps a business active without them having to deal with the legality issues of a bankruptcy claim.
With debt restructuring, a company works on lowering debt payments but also extend loan terms to get by. It’s not quite a deferment of sorts, but it does allow the company to continue functioning while paying smaller monthly payments. In order to qualify for debt restructuring, most companies must show proof to creditors and loan officers that they are in need of immediate assistance but also show that their profitability has sound potential to improve in the near future.
In the eyes of some, most business should do everything possible to insist that bankruptcy is a last-ditch option. Let our Plano TX attorneys assist you with all debt restructuring questions, in addition to other commercial and business litigation issues. Call our Plano bankruptcy law firm today, or contact us online for more details.
Posted in Bankruptcy, Chapter 11, Debt Restructuring, Plano Bankruptcy Firm | 
Tags: bankruptcy, chapter 11, debt restructuring, plano, texas, tx | 
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Bankruptcy: Chapter 7 vs. Chapter 13
The law office of DeMARCO•MITCHELL, PLLC specializes in Chapter 7 bankruptcy and Chapter 13 bankruptcy law. To some, that says a lot. To many, it’s like hearing a foreign language.
While some may hear about Chapter 7 bankruptcy and Chapter 13 bankruptcy on TV or the radio, defining both bankruptcy options may be an entirely different subject. Our Plano TX attorneys want you to understand the difference between the two options and, if bankruptcy is the route you must take, choose your option wisely.
Chapter 7 bankruptcy, also known as straight bankruptcy, gives a debtor a fresh start by granting a discharge in exchange for the sale all non-exempt asses owned. The funds from those assets are distributed within a debtor’s creditors.
Chapter 13 bankruptcy requires debtors to put together and follow a debt repayment proposal for all creditors over a period of three to five years. A debtor is allowed to retain all assets in this case. A debtor is required to make monthly payments to a bankruptcy trustee during those three to five years, and the trustee distributes payments to the creditors.
If bankruptcy is an option you must take, our bankruptcy law experts are more than willing to answer all of your questions. They can further explain the differences in the two bankruptcy options and will offer proper and thorough advice regarding which option suits you best. Call our Plano attorneys today, or contact us online for more information.
Posted in Bankruptcy, Chapter 13, Chapter 7 | Tags: bankruptcy, chapter 13, chapter 7, debtor, differences, law | Comments Closed
How Your Bankruptcy May Affect Co-Debtors
You may have passed the means test and are ready to proceed with your Chapter 7 Bankruptcy, but have you thought about your co-signer or your spouse? Bankruptcy affects those around you in ways you wouldn’t anticipate. If you file Straight Bankruptcy, or Chapter 7 Bankruptcy, and your spouse fails to file as well, your spouse may still be liable for all debts owed to creditors. If you are divorced, and the debt was incurred during the marriage, your ex-spouse may still be held liable as well. Further, under Chapter 7 Bankruptcy, Co-Debtors (Co-Signers / Guarantors) are liable for all debts owed to a specific creditor.
However, under Chapter 13 Bankruptcy, a co-debtor may receive an automatic stay, if the debt was incurred for a domestic (e.g. household) purpose. If the debt is related to business, the co-debtor is not protected and may be held liable for the debt. Still, filing for Chapter 13 Bankruptcy does not relieve the co-debtor of debt obliged to the creditor. The stay is a mechanism for protecting the co-debtor from collection actions while your Chapter 13 Bankruptcy is pending. And so long as you meet your debt payments under Chapter 13 Bankruptcy; your co-debtor should remain unharmed.
This blog post is by no means a comprehensive interpretation of co-debtor obligations. Should you have any questions regarding your bankruptcy proceedings, consult your Dallas TX Bankruptcy Attorneys at DEMARCO•MITCHELL, PLLC. Our Dallas TX bankruptcy lawyers will provide the personal attention your legal needs require. Contact us online, or call (972) 578-1400.
Posted in Bankruptcy, Chapter 11, Chapter 13, Chapter 7, Co-Debtor | Tags: attorneys, bankruptcy, chapter 13, chapter 7, co-debtor, debt, debtor, liable, spouse | Comments Closed