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Financial Restructuring through Bankruptcy

Discerning the Best Option

While filing for bankruptcy is never a first option for solving temporary financial challenges, FGD Law understands that circumstances may sometimes dictate that the most advantageous alternative for restructuring debt is the one that is most readily at your disposal.

Our team has a successful track record in guiding both entrepreneurs and businesses as well as individuals navigate a path to resolution of financial issues that enable them to take responsibility in a manner that enables moving forward. Sometimes a bankruptcy filing is the best strategy for producing a reorganization that ensures forward movement for all parties involved.

When considering a bankruptcy filing, you need to consider the types of debt that are causing the most stress, review your complete asset picture, understand how your debts rose to their current levels, whether they are secured, and the pending actions, if any, that are threatening loss of those material assets (i.e., a foreclosure or repossession of property). You may also want to assess your situation for determining whether a filing will resort in an attachment of your current wages or bank account, and the additional stress that may impose on current income streams.

As an official debt relief agency, FGD Law can provide counsel on your options as well as a fully integrated restructuring strategy to get you and/or your business back on track:

Chapter 7

A trustee is appointed assume management over your property. Any property of value will be sold or liquidated to satisfy the claims of any creditors. You may be able to retain some personal possessions and possibly real estate holdings but that is determined by the laws of the state in which you reside in addition to any applicable federal laws.

Chapter 13

In this instance, you may usually keep your property, but must earn wages or generate some other source of regular income. This filing requires you to pay a portion of any income to your creditors in a payment repayment plan that fits with a budget that is all approved by the court. A trustee is appointed and collects the payments from you to pay your creditors, and ensure that all of the terms of the repayment agreement are adhered to.

Chapter 12

Similar to the stipulations of in a Chapter 13 filing, this option is designed for family farmers and family fishermen.

Chapter 11

This type of filing is the one most commonly utilized by businesses. While you may continue to operate your business, you must devise a plan to resolve outstanding debt to your creditors that is approved by the courts. This filing does not require the appointment of a trustee, unless the judge determines that one is necessary. If one is appointed, that trustee will then assume active control of both your business and your property.

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