At Garza, Regan & Associates, we have experience with helping clients with both personal and corporate bankruptcies and restructurings. We have helped people through hundreds of bankruptcies. If we can help you through this process and on to the next phase of your life - on to your new day - please call us at (301) 340 - 8200 or email us at jgarza@garzanet.com.
Bankruptcy
In this economy, there have been a large number of bankruptcies. We have helped many people through the bankruptcy process. Although people approach bankruptcy with trepidation, it can offer a new start - a new day. Please call us if we can help you move to your new start - your new day.
Personal Bankruptcy
During these challenging economic times more and more people are struggling to stay ahead financially. During the period leading up to 2007 banks and other firms were aggressively pushing individuals and families to take on more debt. But as the economy has gotten worse and jobs have been lost, these debts can cause real burdens on people and their families. A well-planned and executed Bankruptcy may be the best option to relieve you of these financial burdens. Bankruptcy can lower or eliminate completely the amount of debt on your personal, or family, balance sheet, and lower, or eliminate, your monthly payments.
There are two primary forms of Bankruptcy available to individuals and families, Chapter 7 and Chapter 13. Chapter 13 Bankruptcy allows individuals to restructure their debts and payments and is typically used by homeowners who have jobs with regular income and whose debt burdens are not too great. Hence, it is also known as the “wage earner” plan. Chapter 13 is used by individuals to repay their debts over a reasonable period of time and permits a reduction of the debt owed by the individual if the individual cannot afford a full repayment. The debtor must file with the Bankruptcy Court a plan of repayment, which must be approved by the creditors and by the Bankruptcy Court. The plan for repayment will provide for the full payment of all claims entitled to priority, must classify each creditor’s claims against him, and must provide for delivery of a portion of the debtor’s income to the trustee. The trustee then makes distributions to the creditors based on the repayment plan. If the debtor successfully completes all payments under the repayment plan the debtor is entitled to a discharge, which releases the debtor from all debts covered by the plan of repayment. Any creditor, who was paid in full or received partial repayment under the terms of the plan, may no longer initiate or continue any legal or other action against the debtor to collect on the discharged obligations.
A Chapter 7 Bankruptcy allows for the liquidation of assets to satisfy debts and results in your debts being discharged. Chapter 7 bankruptcy filings are common when the there are large amounts of outstanding debt and owns few non-exempt assets. This type of filing is appropriate where there is a substantial amount of credit card debt or significant medical bills. Certain debts are not dischargeable in Bankruptcy; these include secured debts, student loans, tax deficiencies, Government fines and penalties, alimony and child support payments.
Determining which form of personal bankruptcy will best fit your needs can be a confusing process. Garza, Regan & Associates are here to help you determine, which form of bankruptcy may be best for your unique situation. Please contact us if we can be of help to you. Our phone number is (301) 340 - 8200.
Corporate Bankruptcy
The attorneys at Garza, Regan & Associates work to provide practical yet innovative legal solutions to clients involved in distressed corporate situations. The goal of our practice is to provide our clients with educated, experienced and expedient advice allowing our clients to retain value and position themselves for the future. We have helped form strategies for Corporate Restructurings including debt and equity exchange offers, purchases and sales of distressed assets, and prepackaged bankruptcies. Our attorneys have experience in expedited bankruptcy litigation.
Corporate Bankruptcy falls under two categories, Chapter 11 Reorganization and Chapter 7 Liquidation. A business or its creditors may institute Bankruptcy proceedings when the business or corporation is unable to service its debts or pay its creditors. Under Chapter 11, the debtor corporation is able to secure new financing, loans on more favorable terms, and cancel contracts in order to remain a functioning business. Any party, including the debtor-corporation and creditors, to the Bankruptcy proceeding may propose a restructuring plan for the debtor business.
In Chapter 7 Liquidation, the debtor corporation will cease all operations and go completely out of business. Chapter 7 is used by corporations when the far in debt burden is so high or there are other challenges to the corporation that are so serious that continuing business operations is no longer feasible. Shortly after the Bankruptcy petition is filed with the Bankruptcy court a trustee is appointed to liquidate, i.e. sell, the corporation's assets. The money resulting from the liquidation is then used to pay off the creditors and investors of the corporation. The creditors receive priority in repayment and then investors receive the funds remaining after the creditors are paid.