activelawgroup practice area bankruptcy


Those who have faced financial hardship know how difficult it is to deal with overwhelming debt. For many debtors, bankruptcy can provide a way out. Bankruptcy is designed to give debtors a financial fresh start by eliminating most debt immediately.  In order to receive a discharge of debt, debtors can be required to make major sacrifices, such as liquidating their assets, or forfeiting a percentage of their income.

The current Bankruptcy Code was enacted in 1978 and has been amended numerous times.  In this section, you’ll find articles and resources on the different forms of bankruptcy, common issues that debtors face, getting legal help with bankruptcy, alternatives to filing, and more.

The Forms of Bankruptcy

 There are six different types of bankruptcy in the U.S. Each form is designed for a specific purpose and has its own advantages and disadvantages. In a Chapter 7, for example, most of the debtor’s property is sold off in order to repay creditors. In a Chapter 13, on the other hand, the debtor retains his or her property and instead pays off his or her debts according to a repayment plan. Finally, Chapter 11 bankruptcy is typically used by businesses who wish to shed debt and cut costs through reorganization. The type of bankruptcy you file depends on your assets, earning capacity, debt burden, and a number of other factors.

 Common Issues
While bankruptcy is an important tool in resolving your debt problems, it does have its downsides. For example, bankruptcy can damage your credit for years to come. The cost of filing is also prohibitive for many people. In addition, a number of issues can arise during the bankruptcy process itself. For instance, failing to list all of your debts or assets in your filing can lead to a denial of your debt discharge. At times, debtors and creditors can also become embroiled in disputes over the repayment of debts.

 Bankruptcy Attorneys
Whether you’re an individual who is struggling with debt, or a business looking to reorganize, it’s most often in your best interests to consult with an attorney. A bankruptcy lawyer can help you get the best possible terms and make the process go as smoothly as possible. If you’re filing for a Chapter 7 bankruptcy, for example, a lawyer can help you take advantage of the many bankruptcy exemptions offered. If you’re filing for Chapter 11, on the other hand, a bankruptcy attorney can help you develop a repayment plan that will ensure your business exits bankruptcy in a timely fashion.

 Filing for Bankruptcy? Contact a Local Attorney
Since bankruptcy is such a broad area of the law, bankruptcy attorneys typically specialize in one or two areas of practice. For instance, some attorneys focus on Chapter 11 and corporate bankruptcy, while others specialize in personal bankruptcies. If you have questions about the process or need representation, consider working with a local bankruptcy attorney.



Chapter 7-Bankruptcy

What is Chapter 7 Bankruptcy Law?

Chapter 7 Bankruptcy, sometimes referred to as “personal bankruptcy“, was created to help those individuals or small businesses resolve their unpaid debts through payment plans and the liquidation of assets. Filing for bankruptcy could eliminate some of your tax liability and even give you the ability to stop foreclosures.

Not everyone qualifies under the new Chapter 7 bankruptcy law. If you have already filed for a bankruptcy discharge in the past six to eight years, you may not be able to file. In order to be eligible, your “current monthly income” must be less than or equal to the median income for a household of your size in your state. If your income exceeds the median, then you are only eligible for Chapter 13 bankruptcy. All debtors are required to undergo credit counseling on budgeting and debt management before applying for Chapter 7 bankruptcy.

The entire process for filing for Chapter 7 bankruptcy takes around four to six months. When you file, you will be required to fill out a petition as well as some other forms that detail your income, your living expenses, your debts, your property, and some other relevant information.

What an Active Law Group Bankruptcy Lawyers can do for you?

An Active Law Group Chapter 7 bankruptcy lawyer may be able to assist you with immediate debt protection so that you can get your finances back on track and begin to repair your credit. By providing you with valuable legal assistance, a Chapter 7 bankruptcy lawyer can help you pick the option that is best suited for your unique financial situation. When filing for personal bankruptcy, a Chapter 7 bankruptcy lawyer can remove a lot of the confusion and headache associated with your filing.

Chapter 11-Bankruptcy

What is Chapter 11 Bankruptcy?

Chapter 11 bankruptcy, also known as “reorganization bankruptcy,” is designed to assist businesses resolve their unpaid debts. With Chapter 11 bankruptcy, a corporation, sole proprietorship or partnership can legally reorganize their business in order to manager their debts.

A Chapter 11 bankruptcy differs from case to case, depending upon the type of business filing for the bankruptcy. In a corporation, for example, filing for a Chapter 11 bankruptcy will not put the stockholders’ personal assets at risk. In a sole proprietorship however, the bankruptcy will affect both the business and owner’s personal assets. Similarly, in a partnership, both of the partners’ personal assets may be used to resolve the business’s debts, and the partners may also have to file for personal bankruptcy themselves.

What an Active Law Group Bankruptcy Lawyers Can Do For You?

In order to successfully file for Chapter 11 bankruptcy, the debtor must have the confirmed votes of their creditors. Creditors have the option of opposing the bankruptcy filing, thus reorganization under this chapter is estimated to only have a 10% success rate.

Due to the challenges involved in filing for a Chapter 11 bankruptcy, it is highly recommended that you seek the guidance of an Active Law Group bankruptcy lawyer. Lawyers that are experienced in Chapter 11 bankruptcies can best help you and your business reorganize and resolve your debts. Our attorneys will help you through the complexities of Chapter 11 bankruptcy law so that you can be on your way to repairing your credit and your business.

Chapter 12-Bankruptcy

What is Chapter 12 Bankruptcy?

Chapter 12 bankruptcy is a type of bankruptcy that only family farmers or family fishermen can claim. The specified incomes of such trades may not allow these workers and their families to pay their debts. With a Chapter 12 bankruptcy, farmers and fishermen are able to settle all or part of their debts over a three- to five-year period.

Unlike Chapter 11 bankruptcy or Chapter 13 bankruptcy, Chapter 12 bankruptcy has less complexities and complications. However, it is only a temporary solution and not all families will qualify.

What an Active Law Group Bankruptcy Lawyer Can Do For You?

Family farmers and family fishermen with debts that do qualify can seek assistance through an Active Law Group Chapter 12 bankruptcy lawyer. Because this form of bankruptcy law is quite specific, it is important to have a lawyer on your side to help with guidance and filing. Our (A.L.G.) Bankruptcy lawyers that have experience in Chapter 12 bankruptcy can eliminate confusion and help you and your family with debt protection immediately.

Chapter 13-Bankruptcy

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy, also referred to as “wage earner’s” bankruptcy, was created to assist working individuals repay all or some of their debts over a set period of time. Debtors that have a steady income may file for Chapter 13 bankruptcy and propose a repayment plan that may take between three and five years to complete. This form of personal bankruptcy can help individuals get their finances back on track while still maintaining some level of control over their personal assets and credit.

The time frame of a proposed Chapter 13 bankruptcy repayment plan is based upon the debtor’s income level. If the debtor makes less than the state median each month, the repayment period will typically last three years. If the debtor’s income is greater, the repayment period may be five years.

What an Active Law Group Bankruptcy Lawyer Can Do For You?

An Active Law Group bankruptcy lawyer experienced with Chapter 13 bankruptcy laws may be able to help you recover from difficult financial times. With the help of an attorney, you will best be able to create a successful debt repayment plan that will help to protect your assets and credit.

A knowledgeable Active Law Group bankruptcy lawyer will assist you in the complexities of Chapter 13 bankruptcies, so that the process is as easy and stress-free as possible for you, allowing you to get on the road to financial recovery.

Creditors Rights

What are Bankruptcy Creditor’s Rights?

There are laws in place to help protect bankruptcy creditor’s rights in the collection of debts. In bankruptcy cases, for example, creditors have the right to be treated fairly. They may also have the right to receive a portion of the debtor’s assets to help them recover their losses, despite the bankruptcy.

Bankruptcy creditor’s rights were created because many debts get discharged in bankruptcy cases. With bankruptcy creditor’s rights, however, the creditor may petition in court to not have the debt discharged through an “adversary proceeding.”

What an (A.L.G.) Bankruptcy Creditor’s Rights Lawyer Do For You?

If a debtor files for a bankruptcy, a creditor may be able to protect their rights and recover some of their losses by seeking the legal council of an Active Law Group bankruptcy creditor”s rights lawyer. An experienced bankruptcy attorney can help you limit your liability and losses, and secure a judgment against the debtor if necessary. An attorney with experience in bankruptcy creditor’s rights can be your best chance at collecting at least some of the debts legally owed to you.

Some debts owed by a debtor get discharged in bankruptcy proceedings. A creditor holding such a debt may commence an “adversary proceeding” before a court-established deadline to obtain a ruling that the debt will not be discharged in the bankruptcy. If the debt is unsecured it may be discharged in the bankruptcy. The creditors who hold secured debt can participate in the bankruptcy case, but unsecured debt can be discharged in the bankruptcy.


If you are considering filing for Chapter 7 bankruptcy protection, contact Active Law Group. We can help you get your finances back in order.