Businesses and individuals facing severe financial problems often feel as if they are alone and without options. The attorneys at RLT can relieve this stress by working closely and creatively with clients to assess risks and develop strategies for financial rehabilitation. Their energy, talent, compassion, and professionalism guide and assist clients in finding and implementing the most appropriate, cost-effective solutions to their financial problems. For commercial clients, we thoroughly analyze the client's business and its prospects, operations, and finances. When a bankruptcy is necessary, we explain the feasibility of reorganization or the ramifications of liquidation of the client's assets or business. Most importantly, we make clear how the client can emerge from a bankruptcy or financial workout, and discretely counsel clients as to their strongest options to enable them to move forward with their business financial and goals.

For individuals, we explain the various options and work diligently and cost-effectively to solve our client's legal issues and to avoid any disruption to their personal life. Whether to file for bankruptcy is difficult decision; RLT understands that and treats every client with compassion.

Chapter 7: Liquidation

Chapter 7 is the most commonly filed form of bankruptcy among individuals. Chapter 7
essentially allows the debtor to make a fresh start. When a Chapter 7 has been filed, a trustee
collects the debtor's nonexempt assets, which are then reduced to cash, and distributions are
made to the creditors in accordance with bankruptcy law. In most Chapter 7 cases the debtor
receives a discharge releasing him or her from personal liability for certain dischargeable debts.

Chapter 13: Adjustment of Debts of an Individual With Regular Income

Chapter 13 is designed for an individual who has a regular source of income, a desire to pay his
or her debts, but currently is unable to do so. Chapter 13 may be preferable to Chapter 7
because Chapter 13 usually allows the debtor to keep a valuable asset, such as his or her own
house. Under Chapter 13, the debtor proposes a plan to the Court. The plan sets forth how the
debtor will repay creditors over time, between three and five years. The Court must then
approve this plan.

If the Court approves the plan, the debtor will make payments to the creditors through a trustee.
The debtor is then protected from actions by creditors including lawsuits, wage garnishments,
and actual contact with the debtor for the life of the plan. Upon completion of the plan, any
remaining debts are discharged.

Chapter 11 Bankruptcy: Reorganization or Orderly Liquidation

Chapter 11 primarily applies to commercial enterprises that wish to continue business
operations while repaying creditors through a court-approved reorganization plan. Under
Chapter 11, the debtor has the right to file a plan of reorganization within 120 days after the
order for relief. The debtor must provide creditors with a disclosure statement that allows the
creditors to evaluate the plan, although whether the plan is approved is ultimately the Court’s

The debtor has a number of options under Chapter 11 for returning the business to profitability.
These options include reducing debts by repaying a portion of them while discharging others,
discharging burdensome contracts and leases, and rescaling operations of the business. Upon
completion of the plan, the debtor usually has undergone a period of consolidation and emerges
with a reduced debt load and a reorganized, and more profitable, business. As an alternative,
the debtor can use Chapter 11 to maximize the value of its assets by liquidating its assets as a
going concern.

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