The Benefits of Bankruptcy

Bankruptcy Lawyers in Philadelphia – The Benefits of Bankruptcy

Chapter 11 Bankruptcy Benefits

Local company Broad Street Media filed for Chapter 11 bankruptcy protection earlier this year. Broad Street Media is responsible for several local papers including the Philadelphia Weekly, the South Philly Review, the Northeast Times, and nine other publications. At first blush, one might think that another reliable publication is ending. However, some bankruptcy lawyers in Philadelphia were part of the natural and respected strategy to save a business from completely falling apart.

Bankruptcy does not mean that a company will be chopped up, sold for its various assets, and that the creditors will get little or nothing. In fact, the Broad Street Media bankruptcy will enable the owner to address the $2 million in debt, combine operations with a few other papers, and continue operating the papers. A landlord for Broad Street can get lease damages if the bankruptcy proposes to reject that lease. If the lease is not rejected, the landlord can get paid in full. Other vendors can pursue an owner if there is a personal guaranty, or repossessed property that has a valid lien. A bankruptcy lawyer in Philadelphia, like Alfred Abel Law Offices, can help any business collect payments and manage receivables with negotiation, paperwork, and litigation.bankruptcy-lawyer-philadelphia

Chapter 13 Bankruptcy Benefits

A bankruptcy lawyer in Philadelphia, like Alfred Abel Law Offices, can help family owned, small businesses continue operations and manage debt by utilizing Chapter 13 bankruptcy protections. Alfred Abel Law Offices offer Chapter 13 bankruptcy advice, planning, and representation.

Chapter 13 is only available to individuals who receive regular income. Small businesses can use this protection. Alfred Abel Law Offices help both individuals and businesses through bankruptcy, so even if you are unable to qualify under Chapter 13, our bankruptcy attorneys can help you.

Chapter 13 is subject to debt limitations. Currently, individuals must owe less than $383,175 in unsecured debt and $1,149,525 in secured debt. Unsecured debt refers to loans you receive that have no collateral, like credit card or medical bills. Secured debt refers to property you buy with a mortgage or lien that permits repossession, like a home mortgage or car loan.

Once you qualify for Chapter 13 and file, a bankruptcy trustee is appointed to oversee your case. The trustee reviews your proposed plan to deal with your debt, and recommends acceptance of it if you fulfill the guidelines. The trustee holds no veto power over your decisions but must go before a judge if they object to your proposed plan.

The trustee is responsible for collecting payments and distributing them to your creditors. In the event you fail to make a payment, the trustee can report you to the court and recommend that your case is dismissed or converted into a Chapter 7 and completely liquidate your assets. However, if you catch up on the payments, they will rarely do this.

Chapter 13 extends for a certain period which usually lasts between three and five years (but never longer than five). Once the period is up or you pay off the debts, you are free from any remaining debts.

Alfred Abel Law Offices Can Help

Bankruptcy may be the answer that you are looking for to start over financially. In Philadelphia, a bankruptcy lawyer at Alfred Abel Law Offices can answer all your concerns and help you decide if bankruptcy is right for your situation. Contact the Alfred Abel Law Offices today!

Tags: ,