Everyone likes it when a plan works out. But in today’s economic climate, sometimes the best-laid plans fall short and it may become necessary to protect your rights. At Cloud Willis & Ellis, we provide practical solutions for both creditors and debtors in reorganization and restructuring situations, both inside and outside bankruptcy court. Our lawyers are highly experienced in business reorganizations and have particular expertise in complex situations involving secured financings, bond defaults and bankruptcy-related litigation.

Whether you are a creditor in need or representation, or a debtor in need of protection under bankruptcy laws, the experienced Birmingham bankruptcy attorneys at Cloud Willis & Ellis are able to help you in all aspects of bankruptcy. Find out more about this practice area by contacting a member of our team.

Types of Claims

The type of loan has a lot of say in how a bankruptcy case will be pursued, as well as what the creditor or debtor can expect to happen to the assets involved. A secured loan or claim is a loan that is bolstered by an asset of the debtor’s, such as a mortgage or car loan. The creditor can take back the house or automobile if the debtor does not come up with the payments, in most cases anyways. There are conditions that apply in which the debtor may be able to keep said items.

Another type of loan is an unsecured loan, such as the finances loaned by a credit card company. Medical bills are another common reason for a person to file for bankruptcy and have the debt discharged. Student loans are not absolved even if filing for bankruptcy. Priority claims, similar to student loans, cannot be forgiven even after bankruptcy is filed. Examples of priority claims are taxes owed and child support.

Debtor Representation

A debtor, also termed a borrower, is a person who owes a debt to another person, business, or institution, such as a credit card company, loan office, or bank. At Cloud Willis & Ellis, LLC, we represent debtors or borrowers in order to help get their lives back on track after a tragic accident, unfortunate credit card use, or after the loss of a job or home.

Representation of Creditors

A creditor is a person, business, or institution that provides something of financial value to a debtor, with the intention of being paid back, usually along with the agreed upon interest. We represent creditors in order to protect their rights in bankruptcy cases and to assure that they are awarded what they are owed.

How Bankruptcy Occurs and the Rise of Bankruptcy in the Last Fifty Years

Bankruptcy rates have grown significantly over the last four decades. In fact, in 2004, before the economic crash of 2008, more than four times as many people filed for bankruptcy than in 1980, according to the Federal Reserve Bank of St. Louis. While economic conditions have caused bankruptcy rates to rise due to loss of jobs, so too has the availability of credit, as well as the inexpense of filing for bankruptcy. The makeup of the average bankruptcy filer is a blue collar worker or lower middle class family, according to studies, though nearly everyone is susceptible to bankruptcy under the wrong conditions. There are countless examples of multi millionaire executives and real estate moguls who have had to file for bankruptcy. A common chord of both upper and lower class citizens is that the debtor, in both cases, had relied heavily on credit to make ends meet or finance their projects. When a high level of consumer debt or business debt is coupled with an unforeseen event such as a death in the family, serious injury or illness, a loss of income, or another catastrophic event that an insured or underinsured debtor experiences, bankruptcy becomes a likely scenario.

Don’t face this situation without the help of an advocate. Call today for help if you are a creditor or debtor to speak with a skilled Birmingham bankruptcy attorney at Cloud Willis & Ellis, LLC.