Bad things happen to good people (Speaking from experience).

Personal History:
Several years ago I owned a large middle market company. The bank or secured creditor took over the company using the Universal Commercial Code Article 9 (UCC Article 9), sometimes referred to as a ‘UCC Article 9 takeover.’ I did not react as quickly as I should have. What I should have done was contact a competent business attorney / bankruptcy attorney early on to review potential reorganization or other options. Unfortunately I waited too long. I also signed things that I probably shouldn’t have as I did not have proper legal representation early on.

To make a long story short, yours truly Attorney Kirk E. Mentch, Esquire, ended up in Chapter 7 personal bankruptcy several years ago. The experience was a major factor in my going back to school to earn my Dr. of Law degree and become a licensed attorney in Pennsylvania. Near the same time frame I was in a serious accident and I was in a wheel chair for a while. I have been blessed to have near 100% healing and walk again. Near the same time frame I was also diagnosed with cancer, which I was also blessed to have near 100% healing from. After several humbling surgeries and a humbling bankruptcy, I developed a deep understanding compassion and desire to help others. I would like to hear your story. I would like the opportunity to possibly help you as well if you need legal assistance. If you are struggling, who knows hearing more of my story might make you feel good about yourself and your situation. Please consider making an appointment with Attorney Kirk E. Mentch, Esquire at Mentch Law if you have a legal need.
www.MentchLaw.com

Bankruptcy History:
Centuries ago there was something call debtors’ jail or debtors’ prison. People who were unable to pay their debt(s) were sometimes sentenced to debtors’ prison until they were able to work off their debt or find funding elsewhere.

Article I Section 8 Clause 4 of the United States Constitution grants power to congress to establish uniform laws for Bankruptcies in the United States. USCS Const. Art. I, § 8, Cl 4.

The Supreme Court of the United States in 1934 stated “A primary purpose of the Bankruptcy Act is to relieve the honest debtor from oppressive indebtedness and permit him to start afresh free from the obligations and responsibilities consequent upon business misfortunes.” Local Loan Co. v. Hunt, 292 U.S. 234, 244, 54 S. Ct. 695, 699 (1934).

TITLE 11-BANKRUPTCY of the United States Code was enacted in 1978.

Bankruptcy Overview:
Bankruptcy is a federal proceeding. In Pennsylvania there are three federal court districts. There is the United States Bankruptcy Court Eastern District of Pennsylvania located in Philadelphia, PA; the United States Bankruptcy Court Middle District of Pennsylvania located in Harrisburg, PA; and the United States Bankruptcy Court Western District of Pennsylvania located in Pittsburgh, PA.

Chapter 7 Liquidation Bankruptcy for Individuals
Chapter 7 individual bankruptcy, also known as Chapter 7 personal bankruptcy, may provide for a fresh start for debtors. A means test is used to determine if an individual debtor is eligible for chapter 7 bankruptcy relief. When filing a Chapter 7 personal bankruptcy, subject to certain exceptions, an automatic stay typically goes into effect stopping or at least suspending collection activities from creditors. Nonexempt property or nonexempt assets are liquidated by the bankruptcy trustee and distributed to creditors. Exempt property or exempt assets may be kept by the individual debtor. A bankruptcy case without nonexempt property may be referred to as a no-asset case. If the debtor receives a discharge, then the debtor can be released from dischargeable debt. Certain types of debt may be considered non-dischargeable debt however.

Chapter 7 Liquidation Bankruptcy for Businesses
Chapter 7 business bankruptcy may be available for certain types of businesses. When filing a Chapter 7 business bankruptcy, subject to certain exceptions, an automatic stay typically goes into effect stopping or at least suspending collection activities from creditors. Unlike individuals, businesses do not receive a Chapter 7 bankruptcy discharge of debts. Businesses obtain Chapter 7 relief via dissolution.

Chapter 11 Bankruptcy
Debtors can liquidate under a Chapter 11 bankruptcy, but often a Chapter 11 bankruptcy filing is used for reorganization. Chapter 11 reorganization bankruptcy for individuals and Chapter 11 reorganization bankruptcy for businesses are both possible, but are typically more common with businesses. Chapter 11 individual bankruptcies can be filed by individuals that do not meet the Chapter 13 bankruptcy debt limits. When filing a Chapter 11 bankruptcy, subject to certain exceptions, an automatic stay typically goes into effect stopping or at least suspending collection activities from creditors. In Chapter 11 reorganization bankruptcies, the debtor must receive Chapter 11 plan confirmation from the bankruptcy court for the Chapter 11 debtor’s reorganization plan. This plan is sometimes referred to as the Chapter 11 reorganization plan, Chapter 11 plan of reorganization, or simply the Chapter 11 plan. Chapter 11 bankruptcies are typically more complex than Chapter 12 bankruptcies and Chapter 13 bankruptcies.

Chapter 12 Bankruptcy
Chapter 12 bankruptcies may be utilized by family farmers and fishermen that do not qualify for Chapter 13 bankruptcies because they exceed the Chapter 13 bankruptcy debt limits. When filing a Chapter 12 bankruptcy, subject to certain exceptions, an automatic stay typically goes into effect stopping or at least suspending collection activities from creditors. In Chapter 12 bankruptcies, the debtor submits a Chapter 12 repayment plan that must receive Chapter 12 plan confirmation from the bankruptcy court. The plan may be referred to as a Chapter 12 repayment plan, Chapter 12 plan of repayment, or simply the Chapter 12 plan. Most Chapter 12 repayment plans are three to five years in length. Chapter 12 bankruptcies are typically less complex than Chapter 11 bankruptcies.

Chapter 13 Bankruptcy
Chapter 13 bankruptcies are only available to individuals and are not available to businesses. When filing a bankruptcy petition, an individual debtor filing under Chapter 13 must have a regular income. The individual debtor must also have unsecured debts under the Chapter 13 unsecured debt limit, and secured debts under the Chapter 13 secured debt limit. When filing a Chapter 13 bankruptcy, subject to certain exceptions, an automatic stay typically goes into effect stopping or at least suspending collection activities from creditors. In Chapter 13 bankruptcies, the debtor submits a Chapter 13 repayment plan that must receive Chapter 13 plan confirmation from the bankruptcy court. The plan may be referred to as a Chapter 13 repayment plan, Chapter 13 plan of repayment, or simply the Chapter 13 plan. Most Chapter 13 repayment plans are three to five years in length. Chapter 13 bankruptcies are typically less complex than Chapter 11 bankruptcies.

Chapter 15 Bankruptcy
Chapter 15 Ancillary and Other Cross-Border Cases is another chapter in Title 11 of the Bankruptcy Code. Chapter 15 deals with situations where a debtor, or a debtor’s property, may be regulated by both laws of the United States and laws of a foreign country(s).

If you are searching for a business attorney near me, bankruptcy lawyer near me, bankruptcy attorney near me, a lawyer for troubled businesses near me, or an attorney for troubled businesses near me, it is hoped that you will consider working with Mentch Law.

Attorney Kirk E. Mentch, Esquire
www.MentchLaw.com