The firm provides representation to creditors in bankruptcy proceedings.

Chapter 7 - Chapter 7 bankruptcies are probably the simplest and most commonly filed bankruptcy cases. Entitled "Liquidation", the intent of Chapter 7 of the Bankruptcy Code is the liquidation of all of the non-exempt assets of the debtor, for the payment of the debtor's obligations.

Abandonment - In cases where the lien upon an asset exceeds the value of the asset, and there is therefore no reason for the Trustee to sell the asset, the Trustee would "Abandon" the Estate's interest in the asset. The use of the term "Abandonment" does not mean that the asset will be discarded and unused, but simply means that the Trustee recognizes that the asset is of no utility to the Estate, that the Estate does not want the responsibility of administering the asset, and thus the Trustee is merely returning whatever legal rights the Estate might have in the asset to the possessor of the asset, which is usually the Debtor.

The automatic stay of bankruptcy is immediately imposed upon the filing of a bankruptcy petition with the Court Clerk's office. The automatic stay bars any creditor from beginning or continuing any action against the debtor or the debtor's property to collect or force payment on any monetary obligation owned by the debtor. The automatic stay is a protective device which allows the debtor or a bankruptcy Trustee some breathing space after the filing of the bankruptcy petition, to determine the extent of the debtor's assets and liabilities.

Vacating the stay is available, usually for a secured Creditor, to successfully show that there is no equity in the property so as to allow the Creditor to proceed with disposition of the secured asset.

Reaffirmation is a debtor's post-petition, pre-discharge agreement with a Creditor to "reaffirm" the debtor's personal liability on an indebtedness despite the receipt of a Discharge.

Chapter 13 of the Bankruptcy Code, entitled "Adjustment of Debts of an Individual with Regular Income" exists for consumers who have the present ability to resume monthly payments, but do not have the cash needed to bring their indebtedness entirely current. Chapter 13 allows the debtor to force a deceleration of the loan by making monthly payments over a period of time.

Chapter 11- Debtors are usually businesses which wish to reorganize. Most of the basic concepts in a Chapter 11 are similar to those in Chapter 7 and 13. In a Chapter 11, the Debtor becomes its own Trustee, remaining in control of its businesses and in possession of the assets. For a period of 120 days from the filing of a Chapter 11 Petition, only the debtor in possession has the exclusive right to file a plan of reorganization.

Attorneys Schaeffer & Probst