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Bankruptcy & Creditors' Rights

In today's economy, more individuals and organizations face difficult financial realities. With over 40 years of experience, our team is ready to assist clients with an array of legal issues, from filing bankruptcy to foreclosure and creditor workouts. We represent both debtors and creditors, including assisting with filing claims, representing clients' interests in cases, asserting the rights of landlords or secured creditors to recover property, and defending clients facing preference and fraudulent conveyance claims brought by trustees or creditors' committees. We also act as advisors to the matrimonial bar as well as parties electing the collaborative process, advising on the nuances of the Bankruptcy Code and its impact on the dissolution of a marriage. We work hard to minimize clients' exposure to bankruptcy and other insolvency issues and, when those proceedings cannot be avoided, we enjoy our reputation as a premier team of bankruptcy counselors and litigators. We welcome the opportunity to discuss your options and determine the right path forward for you. 

Creditor Representation

MCCM represents clients whose customers, family members, spouses, domestic partners or patients have filed bankruptcy. In addition to explaining the process and rights of creditors, we defend our clients should a debtor, bankruptcy trustee or creditor's committee pursue aggressive action. 

 

Debtor Representation, Business Reorganization & Workouts

Debt Counseling, Business Reorganization & Workouts

Workouts and reorganization offer alternatives to bankruptcy that allow for continued business operations. Should insolvency loom, debt can be reorganized through an out-of-court workout or restructuring. Debtors may enter into contracts with creditors to manage debt obligations. Bankruptcy, receiverships and other tools may be used by businesses to achieve reorganization, liquidation or sale. We counsel financially distressed businesses, creditors and third parties on devising and implementing strategies to regain stability. 

Chapter 7:

This process involves the liquidation of non-exempt assets. For individuals, the goal is discharge of all eligible debt. Individual consumers are required to take a consumer credit counseling course prior to filing and must meet certain standards to file under this chapter. For example, an individual may have secured debt such as a car loan. In Chapter 7, most car loan lenders will require the client to sign a reaffirmation agreement to keep the car. This process is subject to review by the court. If approved, the client would then be responsible for any shortfall in the event of a future default. While Chapter 7 filing is also available to corporations, partnerships and limited liability companies, business operations must cease upon filing because the business assets fall under the jurisdiction of a Chapter 7 trustee.

Chapter 11:

Chapter 11 shares with Chapter 13 the same premise of securing a repayment plan to creditors, but the Chapter 11 process is highly complex and involves shorter timeframes. The client typically proposes a repayment plan to for court approval and creditor acceptance. While most often used by businesses that believe they have a chance to rehabilitate the company, this chapter is also available to high-income individuals who do not otherwise qualify for Chapter 13.

With extensive experience assisting our clients in the Chapter 11 process, be they corporations, partnerships, limited liability companies, not-for-profit organizations or individuals, we offer clients savvy advice grounded in property, business, tax, and bankruptcy law.

Chapter 12:

Limited to a "family farmer" as that term is defined in the Bankruptcy Code, Chapter 12 involves securing a repayment plan with creditors. Payments are then made to a Chapter 12 trustee who in turn disburses the funds to creditors.

Chapter 13:

Chapter 13 is available only to individuals, up to a set debt amount limit. Repayment plans to creditors are limited to five-year terms. Payments are made to a Chapter 13 trustee who then distributes the funds to creditors. As with Chapter 7, debtors are required to take a consumer credit counseling course. The debtor need not surrender non-exempt assets as is required in under Chapter 7, but must meet the "best interest of creditors" test. This test requires debtors to pay creditors at least the same amount as they would under Chapter 7. The most commonly used advantage of Chapter 13 is the right to stop a foreclosure and pay arrears under the repayment plan. Our multi-faceted approach to both real estate transactions and bankruptcy helps clients get back on the road to financial health.

 

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.