Bankruptcy Law

Bankruptcy is a legal proceeding whereby a debtor seeks the relief from the claims of creditors provided for by the Bankruptcy Code.  For individuals, there are two types of relief that are usually used. 

The first is liquidation under Chapter 7 of the Bankruptcy Code; the type of bankruptcy is also called straight bankruptcy.  In a Chapter 7 case, any substantial nonexempt assets owned by the debtor are turned over to the trustee, turned into cash and distributed to the creditors.  The individual receives a discharge which absolves him or her from any responsibility to pay most debts sand provides certain other protections.  Because Delaware has fairly generous exemption laws, most debtors are able to keep many of their assets.

The second type of relief is a reorganization of the debtor’s financial affairs.  Most consumers with substantial assets or income elect to use Chapter 13.  In a Chapter 13 case, the debtor proposes a plan for the payment of some or all of his or her debts within certain statutory guidelines.  The plan is carried out under court supervision with the court protecting the debtor, and usually all the debtor’s property form the creditors.  At the end of the case, the debtor receives a discharge form personal liability on most debts and other protections.  Neither discharge by itself protects the debtor’s property from creditors with valid liens on the property.  However, the Bankruptcy Code offers a number of ways, especially in Chapter 13, for debtors to obtain at least some relief from secured claims of creditors.

The purpose of bankruptcy is to provide debtors with a fresh start and to provide equity among creditors.  The fresh start allows individuals who have become overwhelmed by debt to free themselves from the shackles of the debt and to begin new lives unencumbered by their past financial problems.  The goal of equity among creditors is secured by the fair distribution of the debtor’s assets according to established rules which guarantee equal treatment to similarly situated creditors

If you are unable to meet your financial obligations, we can aid you in filing for one of the variety of bankruptcies available.  As Attorneys who can also represent creditors we understand the hardship financial stress can cause and the work it takes to get an agreement.

Here is a list of our attorneys who handle bankruptcy law cases: 

William W. Pepper Sr.