Common Forms of Bankruptcy

Edward Adams
Image: law.umn.edu

As the Howard E. Buhse professor of law and finance and director of CLE programs at the University of Minnesota Law School, Edward Adams lectures on bankruptcy and bankruptcy theory in his classes.

The two most commons form of bankruptcy are called Chapter 7 and Chapter 11. Chapter 7 bankruptcy is filed by individuals or businesses whose income is insufficient to form a repayment plan. In Chapter 7, some of your assets are sold off to pay down your debt. In return, debt for which collateral has not been pledged, most often credit card debt or medical bills, is forgiven and erased.

If you have filed Chapter 7 and you owe on debt classified as secure (for example, a car loan), you have the option to allow the creditor to repossess the property or to continue to make payments if the lender agrees.

Chapter 13 bankruptcy is filed if the individual’s income is sufficient to form a repayment plan. In this form of bankruptcy, you are expected to repay your debts in three to five years.

What Bankruptcy Can and Cannot Do for Individuals in the United States

Bankruptcy
Image: blog.nolo.com/bankruptcy

Edward Adams teaches law and finance and directs CLE programs as the Howard E. Buhse Professor of Law and Finance at the University of Minnesota Law School. In addition to his teaching duties, he serves as acting general counsel for the Devenir Group, LLC. Edward Adams is known for his expertise in corporate finance and law, secured transactions, entrepreneurship, commercial paper, and bankruptcy.

The concept underlying bankruptcy is that at some point, the weight of debt becomes onerous, and the debtor should be able to “wipe the slate clean” and start anew. Bankruptcy is the legal process by which this is accomplished. The United States Bankruptcy Code recognizes six different types of bankruptcy, two of which, Chapters 7 and 13, are most commonly used by individuals.

A bankruptcy can eliminate certain kinds of debt, especially unsecured debt, such as most credit card debt, revolving lines of credit in stores, and signature loans. Under Chapter 7, most of the debtor’s assets are liquidated and the proceeds used to pay off secured creditors. Some assets, like clothing, furniture, and an automobile, are exempt from liquidation. After the proceeds of the liquidation are exhausted, balances due on secured debt are eliminated. A debtor must pass a means test to qualify for Chapter 7; if his income is too high, he must file Chapter 13.

Under Chapter 13, debtor with reliable, steady incomes submit a plan to the court under which debts are paid off, usually over a longer period of time than provided in the original loan, often 3 – 5 years. Chapter 13 filers generally get to keep their assets; however, they must also pass a means test as to the extent of their indebtedness.

Bankruptcy can erase unsecured and even some secured debt, as well as stop collection efforts. It cannot, however, eliminate or reduce amounts owed for child support, student loans, alimony, or taxes due. Some debtors are able to renegotiate such items directly with their creditors.

Reasons to Attend the University of Minnesota Law School

Edward Adams is a partner at Adam Grumbles, LLP, a law firm launched in 2014. He has served as a professor of law at the University of Minnesota Law School since 1992 and also teaches courses in the MBA program at Carlson School. Edward Adams is internationally recognized for his work in corporate finance and corporate law.

Ranked as a first-tier school, the University of Minnesota Law School offers many advantages to students embarking upon legal careers. Three of the best reasons to attend the University are practice, location, and community.

The University of Minnesota Law School emphasizes experiential learning and offers one of the country’s largest clinical education programs. Additionally, the school offers a unique first-year Law in Practice opportunity, numerous corporate externships, and the choice of nine concentrations. As for location, the Twin Cities is one of the country’s most literate and energetic areas, with many distinctive neighborhoods and access to federal, state, and local courts as well as the state capitol. Finally, the law school and the larger university boasts a welcoming and supportive community of students who are both serious, accomplished scholars and eager mentors.

Geography a Big Factor in Lawyers Making Partner at Big Firms

Internationally recognized for his experience in corporate finance and law, Edward Adams serves as a professor at the University of Minnesota Law School. Edward Adams is committed to remaining updated on developments in the legal field, such as a new study that discovered a correlation between a lawyer’s success in becoming a partner at a major law firm and the geographical distance between law schools and partnering firms.

The study examined 33,000 lawyers from 115 of the largest law firms in the country, and compiled data based on their position at their firm and the institution from which they received their education. Individual law school factors taken into account include its prestige, number of alumni serving as partners, and the distance from major partnership prospects.

According to the study, a considerable percentage of law partners did not necessarily earn their education from the highest-ranking institutions. The study instead found that the institution’s proximity to major law firms played a bigger role in attorney advancement than its level of prestige. For instance, the alumni records of six mid-tier academies with close ties to New York and Washington legal markets displayed higher instances of partnership advancement than records from higher ranking schools.

The Role of Intellectual Property Lawyers

A professor at the University of Minnesota Law School, Edward Adams has over 25 years of experience in the legal sector. In addition to teaching, Edward Adams is partner at a law firm that specializes in corporate advisory and intellectual property law.

An intellectual property lawyer is a legal representative for owners of property that results from mental labor. Commonly divided into two categories, intellectual property law consists of industrial property and copyright. Industrial property includes patents for inventions, industrial designs, trademarks, and geographic indications of source, while copyright includes literary and artistic works.

People who might use an intellectual property lawyer include authors, song producers, or painters whose work has been copied without permission in order to make a profit. Inventors may seek out an intellectual property lawyer in order to correctly and legally prepare and file a patent application. Additionally, a corporation may also hire an intellectual property lawyer in the interest of not infringing upon the rights of another company.