Bankruptcy

The attorneys at Turner, Reynolds, Greco & O'Hara, A Law Corporation, handle the full range of bankruptcy and insolvency issues for individual and business debtors and creditors in Irvine, Newport Beach, throughout Southern California, and statewide, providing strategic advice, planning and representation in a Chapter 7 or Chapter 11 proceeding before the U.S. Bankruptcy Court.

Chapter 7

Chapter 7 liquidation gives an individual debtor a fresh start by wiping the debtor's slate clean of debts.  This is accomplished by selling off the individual's non-exempt assets and using the proceeds to pay off creditors in priority order.  Whatever debts still remain are extinguished by the bankruptcy court.  Although this sounds like a drastic step, California law provides many exemptions from the liquidation, including a certain amount of equity in one's car, household furnishings and personal effects, tools of the trade, and a homestead exemption for the principal dwelling.  Keep in mind also that several types of debts are not dischargeable in bankruptcy, such as certain tax liens, government guaranteed student loans, and alimony and child support. 

Chapter 11

While it is possible for a business to enter Chapter 7, the company is required to cease operations as part of the proceeding.  Where the business is struggling but still viable, Chapter 11 reorganization allows the business to reform its financial structure and develop a plan that pays debts in a timely manner but on a workable schedule that is supported by the company's finances.  A Chapter 11 proceeding has the advantage of bringing all the creditors into the process submitting to one plan, freeing the business from the threat of lawsuits and other debt collection methods which could otherwise force the company out of business.

Creditors' Rights

In a Chapter 7 bankruptcy, creditors are lined up in a priority order according to whether they are secured, undersecured, or unsecured, and other measures of their status.  Some creditors may see their interest extinguished as the bankruptcy court discharges the debtor's obligation to repay.  In Chapter 11, creditors have the opportunity to participate in the development of the reorganization plan and to assent to or oppose it. 

The firm's creditor representation attorneys seek to ensure the client is well-represented in the bankruptcy process, that any objections are filed in a timely and proper manner, and that any pre-bankruptcy conveyances are appropriately handled.

Insolvency Planning

Bankruptcy is a powerful tool to help individuals and businesses manage debt, but it is not the only tool, and it is not always the best method to employ.  The firm's attorneys help clients work out their insolvency issues ahead of time through careful and strategic insolvency consulting, asset and exemption planning, and foreclosure consulting.

For sound, professional advice, planning, or representation, contact Turner, Reynolds, Greco & O'Hara for an appointment with Richard J. Reynolds or one of the firm's other experienced bankruptcy and insolvency attorneys.