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Experienced Bankruptcy Attorneys in Erie, PA
Marsh Law in Erie, Pa., offers comprehensive counsel in bankruptcy law, including expertise in Chapter 7, Chapter 11, Chapter 12 and Chapter 13 practices in the United States Bankruptcy Court for the Western District of Pennsylvania.
Marsh Law bankruptcy attorneys have earned a well-deserved reputation for seeking the most cost-effective and creative solutions for both creditors and debtors.
Representing companies, developers, financial institutions and individuals, our bankruptcy law work encompasses:
- Restructuring
- Reorganization
- Creditors’ rights
- Insolvency litigation
- Out-of-court workouts
- Adversary proceedings
- Secured and unsecured creditors
- Debtors and debtors-in-possession
Chapter 7 Bankruptcy – Liquidation
Chapter 7 bankruptcy with liquidation implies that there will be a sale of the individual or business’ assets, with the sale proceeds to be paid to the creditors. Fortunately for individuals, the law allows individual debtors to keep enough of their assets to enable the individual to have a “fresh start” while eliminating unsecured debts through a bankruptcy discharge.
In a Chapter 7 bankruptcy, Marsh Law:
- Evaluates your circumstances, including the value of your assets any risk associated with losing assets to a trustee sale.
- If there is a serious risk that an asset would be sold in Chapter 7, we may advise you instead to file for Chapter 13 relief.
Chapter 11 Bankruptcy – Reorganization
Chapter 11 bankruptcy is designed to allow struggling businesses to restructure their finances and maximize the return to their creditors and owners. A Chapter 11 plan allows you as a debtor to reorganize and restructure your financial affairs. A Chapter 11 plan is, in effect, a contract between the debtor and your creditors as to how you will operate and pay your obligations in the future.
In a Chapter 11 bankruptcy, Marsh Law:
- Typically recommends some downsizing of the debtor’s operations to reduce expenses and free up assets.
- In some cases, “liquidating plans” are proposed to provide for a total shutdown of the debtor’s operations and the orderly sale of its remaining property.
Chapter 12 Bankruptcy – Reorganization for Farmers
Congress has devised a special system of reorganization for farmers under Chapter 12 of the Bankruptcy Code. Marsh Law believes there are significant advantages in Chapter 12 as compared to Chapters 11 and 13:
- In Chapter 12 the farm often can extend the loan and change the interest rate to lower the monthly payments to banks and other secured creditors, which you cannot do in Chapter 13.
- The debtor in Chapter 12 does not need to secure the written consents of creditors – unlike proceedings in Chapter 11.
- Uniquely in Chapter 12, sales of real estate and personal property often are not subject to capital gains tax.
- While Chapter 12 is somewhat more complicated than Chapter 13, this factor is usually outweighed by the financial and legal advantages of Chapter 12.
Chapter 13 Bankruptcy – Individual Debt Adjustment
Chapter 13 bankruptcy can be used to cure a default on the debtor’s mortgage over three to five years. You may be named as a defendant in a mortgage foreclosure lawsuit. You might be interested in knowing that you have options that may enable you to avoid losing your home. Marsh Law concentrates on individual debt adjustment of your or your business’ assets.
In a Chapter 13 bankruptcy, keep in mind that:
- Only an individual may file for Chapter 13 relief; Chapter 11 Reorganization is normally used by businesses
- Chapter 13 is a much more streamlined process of “reorganizing,” or “adjusting” debts;” as a result, it is much less costly than a Chapter 11 Reorganization.
Contact Marsh Law today to talk to our experts in bankruptcy law.
