McCarthy Law Firm | Bankruptcy
Frequently Asked Questions

What documents/info should I bring to a first meeting?
A budget, a list of assets and values; a list of debts and the amounts; are the debts secured; copies of loan documents or forbearance agreement; historical profits and losses; list of lawsuits; and have thought out what you would like to accomplish with a workout/bankruptcy.

I do not want to file bankruptcy, is there any other option?
Our firm specializes in what is called a "non-bankruptcy workout." Anything that can be done in bankruptcy court can be done outside of bankruptcy court. The non-bankruptcy option does require all of your creditors to agree to the settlement, whereas a bankruptcy only requires a super majority voting in favor. The non-bankruptcy workout has the added benefit of being a more private way of resolving these issues.

What kind of bankruptcy will I need to file?
There are two types of bankruptcy a liquidation and a reorganization.

If a company has the ability to repay its creditors over time it can file a chapter 11, which is a reorganization. If an individual has the ability to repay his or her debts over time they can file a chapter 13, or if they fall outside of the limits of a chapter 13 they can file a chapter 11, these are both reorganizations.

A company that needs to liquidate has two options, they can file a chapter 11 where they propose to sell the company, or its assets during the bankruptcy. The company may also file a chapter 7 where a trustee will take control of the disposal of the companies assets and will liquidate those assets. In either case the company will no longer exist for business purposes in the event of a liquidation. An individual can also file a chapter 7 and liquidate their assets. A chapter 7 trustee will administer the liquidation of the companies assets. The individual will not retain any of their non-exempt assets, but unlike the corporation the individual will survive the bankruptcy filing.

How much will it cost to file a bankruptcy?
This is a difficult question to answer generally. Depending on the size of your matter, the complexity of the issues, the amount of time you are in bankruptcy, and if your creditors decide to accept your plan. In addition, your case may require the hiring of other professionals to assist with the representation such as: accountants, appraisers, realtors, investment bankers, claims and noticing agents, or financial advisors. There are also filing costs and litigation costs which also must be considered in the context of the size of your matter. Please schedule a meeting and we will be better able to determine the potential costs of a bankruptcy.

Is Bankruptcy my only option?
We think the best bankruptcy is the one that is never filed. Our goal is to avoid having a client file bankruptcy whenever possible, but sometimes a filing is unavoidable. In those instances we will communicate to you when we have considered every option. It is still up to you at that point to decide if you would like to file.

I have numerous creditors, is there a limit to the number of creditors I can have if I am filing a bankruptcy?
We have handled matters with over 15,000 creditors and if a case were larger we can always hire temporary staff or outsource the claims work to address your needs. If you have over 500 creditors you should make sure to mention this during your initial meeting as it will require additional planning if a bankruptcy filing becomes necessary.