BANKRUPTCY
 
Emeritus, PA understands how difficult it is to make the decision to file for bankruptcy as an individual or business owner.  We are also aware of the myths and mistakes that people often fall prey to prior to or during a filing that can cause significant harm or hardship to the process and the resolution of the debts.  Let us help you navigate these issues and help put you on the path to moving forward.

Bankruptcy law allows a business or individual debtor to resolve debts through the division of assets among creditors. Certain bankruptcy proceedings allow companies to stay in business and use revenue generated to resolve debts. An additional purpose of bankruptcy law is to allow certain debtors to free themselves of the financial obligations they have accumulated after their assets are distributed, even if their debts have not been paid in full or are not paid via bankruptcy.  Emeritus, PA handles the following types of bankruptcy in the Middle District of Florida:

Consumer Bankruptcy

Chapter 7 bankruptcy, also known as liquidation, is the most common type of bankruptcy proceeding. Liquidation involves the appointment of a trustee who collects the non-exempt property of the debtor, sells it and distributes the proceeds to the creditors.

Chapter 13 bankruptcy, also known as the wage earner’s plan, allows individuals to repay their debts. Depending on the amount of debt, the plan lasts from three to five years.

Business Bankruptcy

Chapter 11 bankruptcy, also known as reorganization, normally is used by businesses with secured debts of less than $1 million. Organizations that file for Chapter 11 normally stay in business while reorganizing and taking care of debt obligations.