Introduction: Bankruptcy and Financial Restructuring
The principle behind bankruptcy law is to provide relief to those individuals and businesses that are experiencing financial hardship. A bankruptcy filing provides these individuals and businesses with time to renegotiate or discharge debts
The enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 significantly amended the bankruptcy laws in the United States. Under the new Act, bankruptcy filings have become more difficult, expensive, and complicated. The Act requires debtors to take financial counseling courses and provide detailed information about their income and expenses prior to the filing of a petition in bankruptcy.
The Act also requires those who face financial hardship to proactively seek the assistance of counsel sooner rather than later. It is pertinent that debtors obtain counsel that specializes in bankruptcy and are familiar with the rapidly developing case law under the Act.
Javed Ellahie carries a Martindale-Hubbell AV-rating, the highest rating of legal knowledge and ethics, and has over 30 years of experience in bankruptcy and financial restructuring. Mr. Ellahie is a certified bankruptcy law specialist (certified by the State Bar of California and Board of Legal Specialization) and has lectured at bankruptcy law seminars organized by the San Jose Bankruptcy Bar.
Mr. Ellahie has also served as a trustee to the Santa Clara County Bar Association and the West-Valley Mission Community College District.
Mr. Ellahies bankruptcy law experience includes representing over 5,000 individuals and sole proprietorships in their bankruptcy matters and providing them relief under Chapters 7, 11, and/or 13 of the Bankruptcy Code.
Mr. Ellahie has also represented individuals and corporations under Chapter 11 of the Bankruptcy Code and has successfully assisted individuals and corporations in their reorganization efforts in Chapter 11 proceedings.
Bankruptcy Options
Chapter 7 bankruptcy allows for an orderly liquidation of a business that intends to close down. The trustee takes any assets that he/she believes can be sold and distributes the proceeds amongst creditors (after paying his/her expenses).
Chapter 13 bankruptcy (available only for individuals and sole proprietorship businesses). The debtor continues in business and proposes a plan for repayment of debts. The payments required depend (to a large extent) on the net worth of the debtor and the amount available to make payments to the creditors.
Chapter 11 bankruptcy reorganization is available to individuals whose debts exceed the allowed limits of a Chapter 13 and to corporate and other business entities.
Related Practice Groups
Sometimes, it is better not to file bankruptcy and do a work out or a liquidation outside the bankruptcy setting. We believe that the decision as to whether to file and when to file are the most important matters to be considered in a bankruptcy filing.
Our attorneys can review all the available options and make an informed decision about whether filing a bankruptcy is the best choice for you. Bankruptcy may still be the best and only way to discharge debts and prevent harassment from creditors. It may be the only way to save a residence and a business from mortgage lenders, secured creditors, and even tax collectors.
Related Practice Groups
We utilize our interdisciplinary expertise in corporate and finance, estate planning, and probate and litigation to provide value-added service and support to our clients.
