Bankruptcy and Preservation

Bankruptcy laws have traditionally been utilized by people struggling financially to remedy their financial difficulties. There are several forms of bankruptcy: Chapter 7, Chapter 11, Chapter 12 and Chapter 13. The type of bankruptcy you need to file depends on your personal circumstances.

There used to be a stigma associated with bankruptcy, but it has become more widely accepted because financial problems can arise through no fault of the person, such as loss of employment or a business due to a medical crisis (e.g. COVID19) or other unavoidable circumstances. In fact, in recent years, bankruptcy has been utilized as a financial tool for both business and personal estate and preservation planning. While most people would not view bankruptcy as an estate-planning tool; however, there are situations when bankruptcy law can be helpful in preserving a portion of your estate assets (e.g. home and retirement accounts) and can also help you regain financial security. In some cases, individuals can also keep their interest in a company.