Law Advocate Group provides legal support on a wide variety of issues related to bankruptcy law. Bankruptcy law is a consumer protection law. It is a federal process that allows consumers to have their qualifying debts forgiven and based on forgiveness rather than punishment. It recognizes that there are sometimes circumstances beyond the consumer's control that can only be addressed through the cancellation of debt.

Under federal law, bankruptcy protection is available to individuals and businesses, including sole proprietors and corporations. When a situation arises in which an individual or business is unable to pay the bills as they become due, bankruptcy is a legal proceeding that could provide relief from their creditors.

In Chapter 7 bankruptcy, which is sometimes referred to as "straight" bankruptcy, a debtor is allowed to keep certain property pursuant to "exemptions" and then property over the exemption limit is used to pay creditors. In Chapter 13 bankruptcy, which is often called the "wage-earners" plan, a schedule of debts, assets, and income is prepared and a plan is prepared for the debtor, who must have a steady income, to pay back the some or all of the debt. In Chapter 11 bankruptcy, which is often highly complex, businesses restructure their debt through "reorganization" plans with the aim of allowing the business to continue as a going concern.

Additionally, business debtors may be subject to involuntary bankruptcy proceedings; for example, creditors holding a sufficient aggregate of debt can force a debtor into bankruptcy. Such involuntary proceedings often come as something of a surprise and the debtor generally has less planning time and flexibility to manage the bankruptcy context.

If you are contemplating filing for bankruptcy or have a question about an ongoing bankruptcy matter, please contact Law Advocate Group to schedule an initial consultation.