In addition to our founding attorney, David Prelle Eron, Prelle Eron & Bailey, P.A. is comprised of highly experienced attorneys with almost 50 years of combined experience.
Avvo® 10 out of 10 Attorney Rating along with 5-Star Client Review on avvo.com
Wichita’s only Business Bankruptcy Specialist certified by the American Board of Certification
Your Kansas Bankruptcy Attorneys for Debt Relief
If debt has become too much for you or your business to handle, filing bankruptcy might be the best way to discard the debt or make a formal plan to repay the debt. Prelle Eron & Bailey, P.A. in Wichita, Kansas, specializes in bankruptcy for both individuals and businesses. Our Kansas bankruptcy attorneys represent debtors and creditors in a wide range of areas.
Call Our Bankruptcy Team for an Immediate Consultation: (316) 262-5500
Do You Have Personal Debt?How Prelle Eron & Bailey, P.A. Can Help
Whether you need to eliminate personal debt or get help catching up on debt, the Kansas bankruptcy attorneys at Prelle Eron & Bailey, P.A. can help you determine what type of bankruptcy is the best solution for your individual needs, as well as the next steps toward debt relief.
Do you need to eliminate debts related to credit cards, medical or health care bills, payday loans, bank account deficiencies, professional fees, household and car repairs, utility bills (including cell phone, internet, and cable bills), and co-signor or guarantor liabilities? “Chapter 7 Bankruptcy (the common form of bankruptcy) can eliminate such debts. Sometimes, loans and business debts owed by the individual are also dischargeable.
The Chapter 7 Bankruptcy process is usually very quick, and the discharge is granted in most cases in about three months. Many “high income” households may not qualify for Chapter 7 Bankruptcy, so you should consult with us to see if Chapter 7 Bankruptcy is right for you.
Personal Payment Plan
If you need help getting caught up on house payments, stopping foreclosure, reducing vehicle payments, preventing repossession, paying off tax debts, eliminating property settlement debts associated with divorce, or deferring student loan payments, Chapter 13 Bankruptcy may be the best solution.
Chapter 13 Bankruptcy is a payment plan for individuals (including those operating sole proprietor businesses). The plan can include payments on all, some, or even none of your debt. Chapter 13 Bankruptcy may be the only form of bankruptcy available for higher income individuals.
Do You Have Business Debt?How Prelle Eron & Bailey, P.A. Can Help
If your business has struggled to pay creditors, you may be facing lawsuits, foreclosure, repossession, and terminations by service providers. Prelle Eron & Bailey, P.A. can help you complete a business bankruptcy filing, which under the right circumstances and if filed quickly enough, can correct negative consequences.
In 2020, the new Subchapter V Small Business Chapter 11 provisions became effective as part of the SBRA. Among the most significant differences for Subchapter V cases is the inapplicability of the “Absolute Priority Rule.” Generally speaking, this allows business owners to keep their businesses and reorganize their affairs without needing the consent of their creditors. As part of the CARES Act, the debt limits for this new subchapter have been increased from $2.7 million to $7.5 million, but only through June 21, 2024. If your business is in need of debt modification, there has never been a better time to get the help you need. Our attorneys have substantial experience in Chapter 11 and are ready to help!
General Business Bankruptcy
Most frequently, businesses need to file Chapter 11 Bankruptcy, which can be used for:
- Obtaining short-term relief from debt service payments.
Restructuring secured debts to lower interest rates and change repayment terms.
- Stripping secured debts to the value of the collateral.
Recovering assets taken by creditors shortly before filing.
- Rejecting burdensome contracts and retaining beneficial ones.
- Paying back taxes over five years.
- Discharging large amounts of unsecured debt.
- Eliminating unprofitable portions of the business operations.
- Liquidating a business in an orderly and efficient manner.
Shutting down a business and transferring its assets/operations to another business entity.
- Much more!
Our founding attorney, David Prelle Eron, is Wichita’s only Business Bankruptcy Specialist certified by the American Board of Certification (the only ABA approved entity for bankruptcy certification). The majority of David’s practice is devoted to business bankruptcy law, and he has appeared in more than 100 business bankruptcy cases. The bulk of Prelle Eron & Bailey, P.A.’s business bankruptcy practice is Chapter 11, which can be used by both companies and individuals. Let us put our experience to work for you today!
Farming, Ranching and Agricultural Bankruptcy
Farmers and ranchers have special needs that are not typically addressed by Chapter 7 and Chapter 13 Bankruptcy. For this reason, most farmers, ranchers, and other agricultural enterprises elect to file under Chapter 11 or Chapter 12 Bankruptcy. Prelle Eron & Bailey, P.A. has represented clients in more than 100 such cases, and has helped dozens of Kansas farms and ranches.
An agricultural reorganization can extend repayment terms, reduce balances, and/or lower interest rates on crop and cattle loans, lines of credit, equipment debt, and land loans. Unneeded equipment and land can also be sold free and clear of liens in a Chapter 11 or 12 Bankruptcy case. The key to a successful ag reorganization is improving cash flow.
The choice between Chapter 11 and 12 Bankruptcy is a complicated one requiring analysis of many factors. However, farming operations with more than $10 million in debt may not be eligible to file under Chapter 12 Bankruptcy. We would love to put our custom crew to work for you!
Health Care Bankruptcy
Professionals in the health care industry have challenges regarding patient privacy not found in other cases. Prelle Eron & Bailey, P.A. has helped doctors, dentists, chiropractors, optometrists, nurses, home health aides, and their operating entities file dozens of bankruptcy cases. The best chapter to file is heavily dependent on your goals (liquidation or reorganization), your operating format (employee, sole proprietor, partnership, LLC, or corporation), and the size of your operation.
Chapter 7 Bankruptcy can be effectively utilized to start fresh in your chosen field, while eliminating all of your existing liabilities. Chapter 13 Bankruptcy can be used by individuals to restructure secured business liabilities over five years, while eliminating vendor and credit card debts. For company reorganizations, Chapter 11 Bankruptcy is the best option. In Chapter 11 Bankruptcy, business liabilities can be restructured over a long period, and unsecured debts can still be eliminated or reduced. Additionally, unprofitable long-term contracts can be “rejected” in Chapter 11 Bankruptcy.
Let us help you enjoy practicing your profession once again!
Human Services and Skilled Care Bankruptcy
Tight budgets, reduced public funding, regulatory nightmares, and staff turnover frequently wreak havoc on human services agencies. Whether you run a retirement home, a residential facility for MR/DD populations, a foster care agency, or a skilled nursing facility, you can undoubtedly identify with some of these issues.
A Chapter 11 Bankruptcy filing can help by halting aggressive action by the IRS or the state taxing agencies, preventing levies and garnishments, and restructuring long-term secured obligations. Unsecured debt can be reduced or eliminated, and under the right circumstances even portions of your taxes or secured debts can be cancelled. You may still need to jump those regulatory hurdles, but Chapter 11 Bankruptcy may give you the relief you need to focus on taking care of your clients or residents instead of struggling with debt.
Hotel and Service Bankruptcy
Hotel and real estate operations frequently face foreclosure, attachment of rents and revenues by secured lenders, receivership, and even de-branding before entering bankruptcy. Many such cases are known as “single-asset real estate” cases, which have a unique set of rules under the bankruptcy code. It is imperative that you retain counsel that understands these types of cases.
By filing Chapter 11 under appropriate circumstances, you can hold your secured lenders at bay, retain and use ongoing rents in the ordinary course of your operations, halt foreclosure proceedings, remove receivers, protect your franchise or branding agreements, and, if necessary, set up a five year repayment plan for back taxes. Chapter 11 can also be used to sell property in a responsible manner and timeframe, restructure and/or reduce your secured loans, and reduce or eliminate your unsecured debts.
We have helped hotels, large industrial properties, residential complexes, and large single family dwelling operations. Let us help you!
Are You A Creditor?How Prelle Eron & Bailey, P.A. Can Help
If you are a creditor or party to a contract with an individual in bankruptcy, your legal rights will be immediately affected. The automatic stay will prevent you from engaging in efforts to collect against the debtor or their property, and your claim may be discharged. You should discuss with competent counsel how best to protect your legal rights immediately.
The Kansas bankruptcy attorneys at Prelle Eron & Bailey, P.A. have represented creditors, Chapter 7 Bankruptcy trustees, and the United States Trustee’s Office in hundreds of bankruptcy cases. This includes filing proofs of claim, seeking relief from the automatic stay, pursuing objections to discharge or dischargeability of claims, objecting to Chapter 11 and 13 Bankruptcy plans, and seeking adequate protection payments for secured creditors. We can help protect your rights!
Prelle Eron & Bailey, P.A. Attorneys
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"...They were very helpful. They answered all our questions and helped us understand the whole process..."
Dedicated to Serving Our Clients
"David Prelle Eron’s niche is business insolvency and complex consumer bankruptcies. He is a go-to bankruptcy attorney in Wichita."
Dedicated to Serving Our Clients
"...Today without the debt strangling us, we have started the journey toward rebuilding our financial future..."
Dedicated to Serving Our Clients
"...David came in the middle of the case, it was quickly evident that he was there to solve the problem and not just milk me for fees..."
Most Popular Bankruptcy Frequently Asked Questions
Why should I hire an attorney?
Far more reasons that we can list, but three HUGE reasons:
- Save MONEY! A major part of our job is helping clients keep as much money and property as possible. If you don’t know how to accomplish that, the results can easily cost you thousands. We have seen cases where it cost into the hundreds of thousands.
- Save TIME! Filling out our questionnaire and gathering all of the necessary documents can be exhausting. But it is nothing compared to having to actually read those documents and assemble the information into more than 80 pages of schedules. We take a lot of work off of your shoulders.
- Save your DISCHARGE! You don’t know what you don’t know. But the court and the trustee cannot afford to make exceptions to the rules for pro se debtors. If you mess up, you could be kicked out of bankruptcy, lose your discharge, or go to prison. It’s not worth the risk.
How quickly can I file?
Pretty darn quick. It usually takes us one to two weeks to prepare a case after we have received all required documents. The most common reason for delay is missing documents and information, which is entirely in your control. In rare emergency cases (i.e. imminent foreclosure, etc.), we can get a case filed within a day or two.
Can I give stuff away?
No. Do not engage in any unusual activities with your assets or finances without retaining counsel first. This can cause major problems with your case if not handled properly.
What happens to my house?
In most cases, all of the equity in your home will be exempt (i.e. cannot be taken from you by the bankruptcy estate). You can elect to reaffirm the mortgage(s) and keep making your payments to avoid foreclosure. If you are already behind in your payments, you can use Chapter 13 to set up a payment plan and get caught up. Alternatively, you can elect to discharge the debt on your home and “surrender” the home to the mortgage company if you do not want to keep up the payments. There are other options as well, and a consultation is the best way to figure out what will work for you.
What happens to my car?
In most cases, all of the equity in your vehicle (one only) will be exempt (i.e. cannot be taken from you by the bankruptcy estate). You can elect to reaffirm the loan and keep making your payments to avoid repossession. In some cases, you can use Chapter 13 to reduce the balance of your loan to the value of your vehicle, and/or restructure the remaining balance over 36-60 months. Alternatively, you can elect to discharge the loan and “surrender” the car if you do not want to keep up the payments. There are other options as well, and a consultation is the best way to figure out what will work for you.
Will I still have to pay my taxes?
Most taxes are not dischargeable in bankruptcy, including income taxes in the past three years, sales tax, and withholdings tax. However, older income tax and tax penalties can sometimes be discharged. Moreover, in a restructuring case, taxes can be paid off over a 60 month plan without additional interest or penalties, all while preventing further garnishments and tax liens.