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The bankruptcy attorneys of Melehy & Associates represent individuals in filing both Chapter 7 and Chapter 13 bankruptcy in the District of Columbia and throughout Maryland, including Montgomery, Prince Georges, Howard, and Charles Counties.
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About Bankruptcy in General
Bankruptcy law provides for the development of a plan that allows a debtor, who is unable to pay his creditors, to resolve his debts through the division of his assets among his creditors. This supervised division also allows the interests of all creditors to be treated with some measure of equality. Certain bankruptcy proceedings allow a debtor to stay in business and use revenue generated to resolve his or her debts. An additional purpose of bankruptcy law is to allow certain debtors to free themselves (to be discharged) of the financial obligations they have accumulated, after their assets are distributed, even if their debts have not been paid in full.
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There are two basic types of bankruptcy proceedings. A filing under Chapter 7 is called liquidation. It is the most common type of bankruptcy proceeding. Liquidation involves the appointment of a trustee who collects the non-exempt property of the debtor, sells it and distributes the proceeds to the creditors. Bankruptcy proceedings under Chapters 11, 12, and 13 involve the rehabilitation of the debtor to allow him or her to use future earnings to pay off creditors. Under Chapters 7, 12, 13, and some Chapter 11 proceedings, a trustee is appointed to supervise the assets of the debtor. A bankruptcy proceeding can either be entered into voluntarily by a debtor or initiated by creditors. After a bankruptcy proceeding is filed, creditors, for the most part, may not seek to collect their debts outside of the proceeding. The debtor is not allowed to transfer property that has been declared part of the estate subject to proceedings. Furthermore, certain pre-proceeding transfers of property, secured interests, and liens may be delayed or invalidated. Various provisions of the Bankruptcy Code also establish the priority of creditors' interests.
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Recent passage of the Bankruptcy Prevention and Consumer Protection Act in April 2005 has also resulted in major reforms in bankruptcy law, outlining revised guidelines governing the dismissal or conversion of Chapter 7 liquidations to Chapter 11 or 13 proceedings. The law also expands the responsibilities of the United States Trustees Program to include supervision of random and targeted audits, certification of entities to provide credit counseling that individuals must receive before filing for bankruptcy, certification of entities that provide financial education to individuals before being discharged from debt, and greater oversight of small business Chapter 11 reorganization cases.
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Melehy & Associates is a law firm of experienced bankruptcy lawyers who are committed to helping individuals file for bankruptcy under the U.S. Bankruptcy Code. From our offices in Silver Spring, Maryland, our bankruptcy attorneys serve clients from throughout Washington, D.C. and Maryland, including Montgomery, Prince George's, Howard, and Charles Counties.
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In addition to bankruptcy law, the law firm of Melehy & Associates has extensive experience in labor and employment law, employment discrimination law, False Claims (fraud on the government), whistleblower law, family law, divorce law, civil rights law, real estate litigation, general civil litigation, and real estate litigation.
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Click Here to visit the Frequently Asked Questions: Bankruptcy page.
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To arrange for a consultation please contact Melehy & Associates today. All calls to our law firm are confidential. We look forward to assisting you. Call (301) 587-6364 or email us at inquiries@melehylaw.com. |
