Bankruptcy
Lindhorst Law Firm represents both creditors and debtors in Chapter 7, Chapter 11, and Chapter 13 bankruptcy proceedings in Federal bankruptcy courts throughout Missouri. Before opening the firm, the firm's principal, Eric J. Lindhorst, served as general counsel for a lender for eight years. This unique experience means he understands creditors' needs and legal rights, and it allows him to better help debtors because he can understand creditors' concerns. We have a thorough understanding of the laws that govern bankruptcy proceedings in the United States and are committed to developing and implementing a bankruptcy and/or loan modification plan that best suits the client.
Chapter 7
Information for Debtors
Individuals and businesses can file for Chapter 7 bankruptcy, which is also called liquidation. Chapter 7 is generally appropriate for people who are facing extreme debts. Under Chapter 7, a person's non-exempt assets are sold to repay the debts. Those debts not covered by the sold assets are typically discharged. Businesses filing under Chapter 7 typically cease operating unless the court-appointed Chapter 7 Trustee continues the business.
Creditors' Rights
Bankruptcy does not discharge fully secured creditors' rights to the collateral or property used to secure their debts. A creditor is fully secured if the collateral's value equals or exceeds the amount of the debt. Certain debts are non-dischargeable, particularly in situations where the debt was obtained using fraud, embezzlement, or where the debtor acted in bad faith. Creditors may also object to a debt's discharge on several grounds.
Chapter 11
Information for Debtors
Chapter 11 bankruptcy, or reorganization, is typically filed by business entities that need an opportunity to reorganize their finances. Businesses that file for Chapter 11 bankruptcy generally continue to function and do not have to sell any assets or property. The goal of Chapter 11 bankruptcy is for the business to implement a confirmed plan to repay the creditors. Once the plan is confirmed, it serves as a discharge and both the creditors and debtor must abide by the new plan.
Creditors' Rights
If an unsecured creditors committee is formed in the case, these creditors may be able to investigate the debtor's business practices and participate in developing the repayment plan. Certain debts under Section 523 of the Bankruptcy Code are non-dischargeable, and in these cases, the creditors retain the right to collect on the debt.
Chapter 13
Information for Debtors
Under Chapter 13, or individual debt adjustment bankruptcy, an individual with regular income can keep his or her property and repay debts over a period that is typically three to five years. Chapter 13 ends the foreclosure process, and allows debtors to keep their homes.
Creditors' Rights
Creditors must accept the terms of the repayment plan, but may enforce the terms of the plan if the debtor ceases paying in accordance with it. Additionally, if a debtor has proposed a repayment plan that requires very low payments, creditors may be able to get the payments increased or get the plan dismissed if it was filed in bad faith.
Loan Modification
We understand that many individuals and businesses come to us during a difficult time when their bills and debts are mounting. In addition to assisting clients with filing for bankruptcy, we also assist them in seeking bankruptcy alternatives. Loan modification can make it easier for debtors to repay their debts without going through the bankruptcy process. This includes short sales, loan re-negotiation, reaffirmation agreements, and forbearance. Lindhorst Law Firm is also experienced in handling Uniform Commercial Code (UCC) sections that cover inventory and assets, and in certain situations, we can arrange for Deeds of Trust or personal guarantees.
Seek Experienced Legal Representation
Whether you are a debtor who needs assistance with mounting bills and debts or a creditor who is concerned that your debtors are not paying and that your debt might be discharged in bankruptcy proceedings, Lindhorst Law Firm has the experience and commitment to protect your rights and interests. Contact us today to arrange a consultation regarding your case.
