Areas of Practice – Bankruptcy

Consumer Services

Chapter 7 Bankruptcy

While not technically correct, most people describe a chapter 7 bankruptcy case as a “straight bankruptcy.” This is where most individual consumer debtors choose to file. However, corporations, LLC’s, partnerships, and many other entities are all eligible to file chapter 7. A chapter 7 case usually lasts between four months and a year, but can take longer. Read More

David Eron
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William H. Zimmerman
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Chapter 13 Bankruptcy

Chapter 13 is an excellent choice for individuals who are facing home foreclosure, are substantially behind on mortgage or car payments, have significant tax debts, have property or debt settlement obligations from a prior divorce, or have high income levels. Unlike chapter 7, only individuals (including individuals with sole proprietor businesses) are eligible to file chapter 13. Here, a debtor can repay all or a portion of their debts. Typically, a chapter 13 case lasts between three and five years. The trade-off is that more types of debt are dischargeable in a chapter 13 case and a debtor who is at risk of losing their home through foreclosure may be able to cure arrearages in chapter 13 bankruptcy, allowing them to keep their home. Moreover, as long as a certain threshold amount is paid into the plan, a debtor frequently has the ability to keep all of his assets, whether exempt or not. Read More

David Eron
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William H. Zimmerman
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Business Services

Chapter 11 Bankruptcy

Eron Law has a substantial chapter 11 practice. Chapter 11 bankruptcy is by far the most versatile of all bankruptcy chapters. Unlike the other chapters of bankruptcy Chapter 11 does not have a mandatory trustee to supervise the bankruptcy case. Instead, the debtor is placed “in possession” of the estate, giving the debtor a level of control not found anywhere else. Chapter 11 bankruptcy is designed to allow a business to restructure its debt and reorganize its operations. Chapter 11 is the only place where a business entity may receive a bankruptcy discharge, and even then the discharge is limited to successful reorganizations. That being said, chapter 11 is neither limited to businesses, nor to reorganizations. Chapter 11 can be used by individuals and can be used to close a business. Read More

David Eron
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Chapter 12 Bankruptcy

Only family farmers are eligible to file chapter 12 bankruptcy. It is the chapter where small farms can reorganize their debts and restructure their businesses. Chapter 12 is most similar to Chapter 13, and involves the same basic features. There are limits on the amount of debt that an individual in a chapter 12 case may have, but those limits are substantially higher than the chapter 13 debt limits. Read More

David Eron
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Litigation

Bankruptcy litigation typically involves the defense of avoidance actions and dischargeability complaints. “Avoidance” actions are lawsuits brought by bankruptcy trustees against persons who received money, property, or some benefit from a debtor at some specified point before (and in some cases, after) the debtor files a bankruptcy case. The law allows a variety of transfers to be recovered by the bankruptcy trustee on the principal of fairness to all creditors. Thus, even if a debtor pays you an amount that you are legitimately owed, it is possible that the trustee can recover the funds you received. Read More

David Eron
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William H. Zimmerman
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Chapter 7 Bankruptcy | Chapter 13 Bankruptcy | Chapter 11 Bankruptcy | Chapter 12 Bankruptcy | Litigation