About Our Bankruptcy Practice

My name is Jonathan Hodge and our law firm helps businesses file for relief under the Bankruptcy Code.

We understand the stress that comes with financial difficulties. We take the time to learn about your overall financial situation and help you to determine if a personal or business bankruptcy is the best option for you.

The bankruptcy code was created to give people a fresh start, not to make them destitute. Many people are surprised to discover the advantages of filing. Plus, at some point, too much debt makes functioning day to day, planning for retirement and other essential tasks simply too difficult to manage successfully.

We've organized this site to be as helpful as possible. Of course, not every question you might have can be answered here. Everyone has a unique situation and we welcome the opportunity to speak with you and discuss your challenges and specific needs.

Our office is conveniently located in in downtown Louisville, a half a block north of Main Street at 100 N. Sixth Street.

What is an Adequate Protection Order?

August 19, 2009

Some Chapter 13 debtors fall behind on their trustee, mortgage, or car payments. As a result, secured lenders move for relief of stay, a motion allowing them to proceed with remedies outside the jurisdiction of the Bankruptcy Court. Unless an opposition if filed, relief of stay will typically be granted. In the face of opposition, the Court will then address the issues at a hearing. An Adequate Protection Order can be used to eliminate such a hearing.

An Adequate Protection Order ("APO") is essentially an Order granting relief of stay to the lender, saving the costs of a hearing and also providing relief of stay should the debtor fail to cure the default. For the debtor, the APO eliminates the risk of a hearing, provides additional time to cure the default and maintains the automatic stay.

An APO comes with certain contingencies - that the debtor will get current on past payments and eliminate any other post-petition defaults within a reasonable amount of time. The APO recitals detail why the debtor is in default, when the debtor will be current with payments, attendant fees and costs and the procedure to submit a final order for relief of stay in the event the debtor does not comply.

Most APO's also provide additional notice procedures. Examples include a 72 hour telephonic notice that unless the default is immediately cured, the Order will be submitted and relief of stay will be granted. It is very difficult to undue an APO at a later date if one cannot comply with the 72 hour notice. Instead, relief is typically granted as a matter of course and as such, one is at the lender's mercy once the 72 hours pass.

When an attorney suggests an APO, be sure you completely understand all the terms, dates, payments, contingencies, and time frames. While an APO is a great way to resolve a post-petition default, unless one can realistically comply with the terms of the agreement, relief of stay will be granted.

Can a small corporation file a bankruptcy without a lawyer?

Typically, the answer is no. If a corporation or LLC tries to file a bankruptcy case "pro se" through its sole stockholder or chief executive officer, most courts will say that this petition is void - essentially, an act which can only be done through an attorney.   Read more...