Bankruptcy — just the sound of it evokes strong feelings in most people. It’s rarely anyone’s first choice when trying to cope with overwhelming debt, the decision to file bankruptcy can be the right one when made with full awareness of all its consequences.
Chapter 11 Commercial Bankruptcy
Since 1987, the Biloxi law firm of Byrd & Wiser, Attorneys at Law has offered a diverse group of commercial clients the distinctive counsel and expertise they need to protect their interests during commercial bankruptcies.
Drawing on the extensive experience of a small group of lawyers, our practice works closely with businesses, commercial organizations, and financial institutions to handle the complicated, time-consuming aspects of Chapter 11 bankruptcy petitions. We work with a variety of commercial ventures throughout the state and around the nation, helping them make the informed financial decisions to find the best approach to handling their organizational needs—before, during, and after bankruptcy workouts and restructuring.
We work closely with businesses and corporations to provide the attentive service and distinguished advice that has earned our practice a reputation as the Mississippi Gulf Coast’s leading commercial litigation and bankruptcy law firm.
Below you will find some general information on bankruptcy laws.
Bankruptcy – An Overview
Bankruptcy is a legal vehicle that provides relief to individuals and businesses in serious financial trouble and protects their creditors to the extent possible. Generally, the bankruptcy process assesses the debtor’s assets and liabilities and provides a structure within which the debtor is allowed to keep some, and in most cases, all property and ordered to satisfy as many eligible debts as possible, according to an order of priority established by law. Remaining debts are discharged, except those of certain types, like domestic support orders, debt obtained by fraud and most tax debt.
The traditional stigma of bankruptcy has faded and been replaced by the view that it is a fresh start after a time of trouble. Most bankruptcy debtors have experienced unexpected and extreme financial shock, such as that caused by sudden events such as job loss, business failure, death, divorce or illness.
In such cases, filing bankruptcy may be the right answer.
If you are facing serious financial challenges, an experienced bankruptcy attorney can help you assess your legal options.
When an individual falls desperately behind in his or her debt payments, one option may be to declare bankruptcy. Bankruptcy is a legal proceeding in a federal bankruptcy court that relieves the debtor of some or all of his or her debts. While bankruptcy may not be the best option for everyone, in the right situations, it can provide people with a fresh start.
Like a consumer, a business sometimes finds itself in the uncomfortable position of being unable to pay its debts. One solution is to file for bankruptcy, a legal process in federal bankruptcy court that releases the business from the obligation to pay all or some of its debts.
Credit Counseling Requirement in Bankruptcy
In 2005, Congress passed and the president signed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), a bankruptcy reform law. One of the new requirements BAPCPA imposes on a bankruptcy debtor is to receive credit counseling from an approved credit counseling agency before the bankruptcy filing.
Surviving the Emotional Effects of Bankruptcy
No matter what circumstances ultimately led to filing bankruptcy, both the practical and the emotional impact on the debtor will be enormous. Confronting the emotional and psychological issues surrounding bankruptcy and reaching an understanding and acceptance of the situation are essential to rebuilding and maintaining a successful financial life.
Bankruptcy Resource Links
- American Bankruptcy Institute Consumer Bankruptcy CenterGeneral information regarding consumer debt and bankruptcy.
- Bankruptcy: An Overview
A bankruptcy overview from Cornell Law School, including links to state, federal and other sources.
- Official Bankruptcy Forms
From the Administrative Office of the U.S. Courts.
Official website where consumers can obtain free credit reports from the three national credit-reporting companies.