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What is Bankruptcy

Bankruptcy is a legal way to provide relief to those in severe financial trouble; it can eliminate most debts and help you get a “fresh start.” Bankruptcy in America is governed by laws found primarily in Title 11 of the United States Code. There are different kinds of bankruptcy cases, called “Chapters,” each with a different purpose and goal.

We are a debt relief agency — we help people file for bankruptcy relief under the Bankruptcy Code.

Hoover Penrod has a distinguished and experienced team of attorneys committed to helping businesses and individuals resolve their financial troubles. In addition to representing clients in bankruptcy proceedings, we provide non-bankruptcy solutions tailored to meet your needs.

We provide our clients with individualized attention and assistance. One of our experienced bankruptcy attorneys can guide a business or individual through the complicated legal, financial, and emotional maze of bankruptcy and steer you in the right direction for the future.

Our Bankruptcy Services

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a legal proceeding in a federal bankruptcy court that relieves the debtor of some or all of their debts. Filing a chapter 7 bankruptcy petition will stop phone calls from debt collectors, prevent repossessions, and stop wage garnishments (when a salary is withheld from an employee to pay off a debt).

This is a good option for:

  • Individuals struggling with debt who do not have significant assets or whose assets do not have equity to outweigh the debts and allowed exemptions
    • Note: individuals must meet income qualifications called the “Means Test” to be eligible.
  • Businesses willing to liquidate all assets and close down the business
    • If your goal is to continue to operate your business, look into Chapter 11 bankruptcy instead.

Chapter 11 Bankruptcy

Chapter 11 bankruptcy involves the reorganization of a business looking to continue to operate while going through the bankruptcy process. Typically the business’ current management will continue managing the day-to-day operations. Chapter 11 bankruptcy may also be an appropriate solution for individuals with high levels of debt or who are involved in business operations. In 2019, new laws were enacted to make Chapter 11 bankruptcy a more attractive and attainable option for many small businesses and their owners.

Chapter 12 Bankruptcy

Chapter 12 is specifically designed for farmers and fishermen. Chapter 12 allows a “family farmer” or “family fisherman” (as those terms are defined in the Bankruptcy Code) to restructure their debt. Our attorneys understand that farmers face a unique and special set of financial considerations, and we are experienced at helping farmers keep their property and restructure their debts.

Chapter 13 Bankruptcy

Chapter 13 is primarily for individuals looking to keep assets, such as a house, despite having fallen behind in the payments, or for individuals whose income exceeds the limit for Chapter 7. Chapter 13 bankruptcy allows you to keep your home by catching up on mortgage payments over 3-5 years while continuing to make the current debt payments going forward. Chapter 13 can be an effective way to stop the foreclosure process.

Counseling and Workouts for Business Creditors

In addition to representing business creditors (both secured and unsecured) in traditional bankruptcy cases, we also advise lenders and other secured creditors in out-of-court workouts. A “workout” is a mutually negotiated debt adjustment that does not involve a bankruptcy filing. This agreement can often be negotiated without the added time, expense, and complexity of a bankruptcy proceeding.

Our workout services include:

  • Analyzing credit facilities, loan and security agreements, and related documents
  • Negotiating realistic terms with debtors, landlords, and/or other secured parties
  • Drafting forbearance and other debt-restructuring agreements
  • Enforcement of creditors’ rights
  • Short-sales
  • Foreclosures
  • Assignments for the benefit of creditors

Preventive Counseling for Business Creditors

Hoover Penrod is also equipped to provide your business with guidance to protect it against loan defaults, under-collateralization, and various repayment-avoidance methods that debtors use in bankruptcy proceedings. Our lawyers can provide you with loan and collateral recovery strategies, as well as reliable litigation to protect your interests.

Our attorneys have established a reputation among creditors’ bars as experienced, professional, and assertive in obtaining favorable terms for business creditors and minimizing legal costs.

Our Bankruptcy Services

Many non-bankruptcy solutions, such as negotiation and out-of-court restructuring, can effectively resolve a difficult financial situation for individuals or business owners. One of our experienced attorneys can assess your situation and provide you with options.