Bankruptcy Law

Cohen & Lombardo, P.C., represents both Creditors and Debtors in Chapter 7, 11 and 13 bankruptcies.

  • Chapter 7 filing is most appropriate for individuals who carry mainly credit card debt or back income taxes (that are more than three years old), but are current with their home and car payments. Chapter 7 debtors are statutorily entitled to protect $250,000 in home equity ($500,000 per husband and wife) as well as $4,000 in equity in a vehicle without risk of losing either their house or car.
  • Chapter 13 reorganizations are utilized primarily by debtors who are delinquent in their mortgage and/or tax payments and are threatened with the loss of their home through foreclosure, or whose income exceeds certain limits based upon household size. This type of filing is also for individuals possessing sufficient income or assets, such that a reorganization of debts through a payment plan of three to five (3-5) years is appropriate.
  • Chapter 11 is usually undertaken by a business with short-term unmanageable tax and credit obligations but desires to avoid liquidation.
  • For creditors, the removal of bankruptcy protection in order to foreclose on property as well as assisting creditors in moving for the rejection or dismissal or proposed plans under Chapters 11 and 13.
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