We are in the midst of the worst recession any of us have faced. Real
estate values have plummeted, banks are not lending money and income has dropped. Unfortunately, our liabilities have
not lessened. As a result, millions of people who have always worked hard, have always paid their bills find themselves
in a position that they never imagined that they would be - unable to pay their bills, unable to sell their assets that they
have worked so hard to accumulate and owning a house that is so upside down that they are unlikely to be able to hold the
property long enough to ever see any equity.
People are embarrassed to find themselves in this situation yet desperately need answers to the many questions that
they have. Most law firms that do bankruptcy do not have a real estate and/or bankruptcy problem. If you go to
them to seek a bankruptcy but they will not look at your total financial situation to determine the best solution for you.
Some people file bankruptcy even though they could have possibly avoided bankruptcy by solving their real estate problem.
Others pursue a real estate problem that will not eliminate the need for a bankruptcy. Our attorneys will sit
down with you and will look at your entire situation, answer the many questions you have and help you create the best plan
to meet your goals.
Our
Initial Consultation fee is a discounted rate of $150.00. We encourage people to complete
the Asset/Liability Information Sheet and the Monthly Expense Information Form prior to the initial meeting so we can better answer your questions. We can also provide you with a hard copy
of these forms to fill out if you are more comfortable filling out a hard copy form.
Your Initial Consultation Fee will be applied against your Bankruptcy Retainer
if you hire us to proceed.
Chapter
11 Bankruptcy Reorganization
A Chapter 11 Bankruptcy
allows individuals, businesses and partnerships to reorganize their debt so they can avoid a Chapter 7 Bankruptcy. Unlike
Chapter 13 Bankruptcies there are no limits to the amount of debt.
A Chapter 11 plan must be prepared and submitted to the Creditors Committee for approval. The
Creditors Committee represents all of the creditors and the debtor will negotiate the plan or reorganization with the Creditors
Committee. If the plan is not affirmed by the creditors, the debtor can attempt a "Cram Down" whereby they
attempt to get court approval of the plan dispute the opposition of the creditors.
While the debtor generally continues to possess and operate the business,
the court will supervise to protect the interests of the creditors. A debtor in this position is acting as afiduciary for the creditors.
If the debtor is found to be an ineffective manager of the business or dishonest in any way a trustee can be appointed
to manage the business.
In most bankruptcy cases we will
represent you in your bankruptcy at a flat rate so that you do not have to worry as to what the cost of your bankruptcy might
be. The amount of the flat fee will depend on the complexity of your specific case. Attorney fees for an non-adversarial Chapter 11 Reorganization start at $7,500.00. Because there is so much
flexibility within a Chapter 11 Bankruptcy it is impossible summarize everything that might happen in your case and thus is
impossible to say that your case most likely will qualify for the minimum Chapter 11 retainer fee. Additional costs,
over and above attorney fees, will be incurred. While a Chapter 11 Bankruptcy offers the most flexibility, most individuals chose a Chapter 13 Bankruptcy since the process is less strenuous and less costly.
Prior to representing you we will
provide you with a written retainer that will spell out the costs of your case. If you have questions regarding the
cost or any other part of the retainer, do not hesitate to talk to you attorney. In all bankruptcy filings there will
also be costs incurred over and above you attorney fees.
Most Chapter 11 Bankruptcies Fail; Most Individuals Prefer Chapter 13 Bankruptcies to Reorganize.
