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| Are you drowning in debt? Bankruptcy can help. Bankruptcy Fees It is difficult for most attorneys to quote a fee for a bankruptcy filing without knowing something about the case. Some clients have only credit card debt and no other complications. Others have several mortgages, investment properties, tax issues and other difficulties. The attorney must also determine if a Chapter 7 filing is possible and the best course of action, or if a Chapter 13 or Chapter 11 is necessary. The fees vary accordingly. Unfortunately, some firms quote a low fee to 'make the sale' but change that quote once you have committed. We do not support that practice. Here is some information that might help. Most competent bankruptcy attorneys charge fees within a reasonable range. If you see an advertised fee that sounds too good to be true it probably is. With the collapse of the real estate market and declining economy many local lawyers with declining practices in other areas of the law are attempting to practice bankruptcy law to rebuild their firms. Since they have little or no bankruptcy experience they are advertising low fees to find clients. Some of these newcomers to the bankruptcy field are learning as they go. Some have never filed a case. Others have not filed a case for the advertised fee. Don't be fooled by low quoted rates. Make sure you retain competent counsel or it may cost you much more in the long run. Recently we have noticed a much larger numbers of attorneys who appear to be new to the practice of bankruptcy attending meetings of creditors. We have observed cases in which exemptions were not properly utilized resulting in great expense or loss by the client, cases that should not have been filed because of nonexempt assets that are lost to the bankruptcy trustee, and many cases that are improperly handled and have to be dismissed or refiled. A bankruptcy filing is a serious matter with potentially disastrous results. It should only be handled by an attorney with experience in bankruptcy and who knows the local bankruptcy judges, trustees and procedures. If you have question contact info@bankruptcy.tips. |
Chapter 11 |
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Chapter 11 is available to both individuals and businesses. Due to the higher filing fees ($1,213.00), reporting requirements and legal fees involved in a Chapter 11, it is not often used by individuals. However, for those individuals with debts in excess of $1,000,000.00 it may provide an opportunity to reorganize that may not be available in Chapter 13. For a small business a Chapter 11 bankruptcy filing allows the business to reorganize its debts and make arrangements to pay all or a portion of the debts while obtaining protection from creditors. A small business Chapter 11 also may be used to sell the business as a going concern. For a local attorney who handles Chapter 11 bankruptcies visit www.flalawyer.com/chapter11.html. If you have question contact info@bankruptcy.tips. A small business can invoke the protection of Chapter 11 to hold collection actions and levies at bay while developing a plan of reorganization. If your business has suffered a temporary setback a Chapter 11 may give you the time you need to get caught up on bills. It also provides a forum to negotiate with all creditors in a setting favorable to the business. Chapter 11 can also be used to liquidate a small business in an orderly fashion. Individuals may also file for Chapter 11 bankruptcy protection. There is no debt ceiling for a Chapter 11 as there is in Chapter 13. An individual Chapter 11 also provides greater flexibility than a Chapter 13. In this difficult economy many real estate investors are turning to Chapter 11 to allow them time to sell properties and reorganize debts. Condo associations can also file for Chapter 11 bankruptcy protection. In this unusual economy many condo associations are facing serious financial problems as unit owners default on monthly maintenance payments. Many units are in foreclosure but the banks often drag their feet as they are in no hurry to take title to the units and by doing so incur the monthly maintenance fees. While not a solution for all associations, a Chapter 11 reorganization can stop pending lawsuits and levies, force all creditors to deal with the association in one forum, prevent utility companies from terminating service and allow the association to reject unfavorable leases. The association should have a clear exit strategy before filing a Chapter 11 proceeding. Bankruptcy protection also provides a means to stop IRS collection procedures for a period of time while payments are made. Bankruptcy Code § 362, which grants debtors automatic relief from collection activity, applies to the IRS in the same manner as other creditors. Priority and non-priority taxes can be treated in a Chapter 11 plan and paid out over time. This may allow a business which has been seized by the IRS to re-open and operate without interference from the IRS or other creditors. Some Chapter 11 Success StoriesHere are a few examples of successful Chapter 11's:
For a local attorney who handles Chapter 11 bankruptcies visit www.flalawyer.com/chapter11.html. This article is not intended as a substitute for competent legal or accounting representation, but merely as a guide to help you decide whether you need the services of a licensed attorney or CPA. |