When things go wrong as they sometimes do, clients may seek bankruptcy relief. The benefits may include debt relief i.e. debt negotiation to a reduced amount for manageable repayment to creditors without or with court assistance, asset protection i.e. insulation of select assets from creditor claims, lawsuits, or any other type of liability or the opportunity to re-organize personal or business debts to more advantageous terms than otherwise feasible.

Re-Organization Option
Debtor in possession activities
File plan
After approval distribute reorganization plan
Secure acceptances
File list of exempt property
Trustee meeting
Trustee liquidates non-exempt assets and distributes proceeds
Discharge of qualified debts
Final decree

Bankruptcy Option
Credit counseling requirement
Bankruptcy petition forms including schedules assets and liabilities
Current income/expenditure
Financial affairs
Contracts/leases, tax returns
Automatic “stay” of creditor collections actions