Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Restructuring & Insolvency law in Omaha guides individuals and businesses experiencing financial distress through the legal processes of rearranging debts, negotiating with creditors, or formally declaring bankruptcy to address liabilities. This field encompasses both preventative measures for struggling entities hoping to regain financial stability, as well as procedures for orderly dissolution or reorganization under United States federal bankruptcy laws. Operating within Nebraska's jurisdiction, Omaha has access to both the federal bankruptcy courts and state regulations that shape the local landscape of restructuring and insolvency.
Seeking experienced legal assistance is critical when navigating restructuring or insolvency matters. Here are common situations where an Omaha lawyer's expertise is invaluable:
In Omaha, most bankruptcy and insolvency proceedings are governed by federal law, specifically the United States Bankruptcy Code. However, Nebraska state law also plays a critical role, particularly regarding exemptions - property and assets that individuals can keep in bankruptcy. The local U.S. Bankruptcy Court for the District of Nebraska handles cases filed in Omaha. Key aspects of local law include requirements on pre-filing credit counseling, trustee assignments, means testing for individuals, and guidelines for creditor meetings. Additionally, Nebraska-specific statutes may influence business dissolutions, creditor priorities, and certain restructuring alternatives outside formal bankruptcy, such as voluntary workouts or assignments for the benefit of creditors.
Restructuring involves making changes to the financial or operational structure of a company or an individual’s finances to avoid insolvency. Insolvency is the state in which a person or business cannot pay its debts as they come due. Restructuring often occurs before or alongside insolvency proceedings to resolve financial issues.
The most common types are Chapter 7 (liquidation), Chapter 13 (wage earner’s plan), and Chapter 11 (business reorganization). Each has distinct eligibility requirements and outcomes, and an attorney can help determine the best option for your situation.
Nebraska has its own list of exemptions that residents must use, which determines what property and assets you may be able to retain after filing for bankruptcy. These exemptions may include your home, vehicle, personal property, wages, and retirement accounts up to specified amounts.
It depends on the value of your equity in these assets and Nebraska’s exemption limits. If the equity is less than the exemption amount, you may be able to retain your home or car.
Filing for bankruptcy will have a negative impact on your credit. Chapter 7 bankruptcies remain on your credit report for up to 10 years, while Chapter 13 remains for 7 years. However, bankruptcy can give you a fresh start and may be better for your credit in the long run compared to ongoing defaults.
Most filers must attend a meeting of creditors known as a 341 meeting, which is typically less formal than a court hearing. In some cases, if disputes arise, you may have to appear before a bankruptcy judge.
No minimum debt amount is required. Bankruptcy eligibility depends on several factors including your ability to repay debts, types of debts, and your financial situation.
Chapter 7 cases typically take three to six months from filing to discharge. Chapter 13 repayment plans last three to five years. Chapter 11 cases can vary depending on complexity.
No. After filing, an automatic stay goes into effect that stops most collection actions, including phone calls, wage garnishments, and lawsuits.
No. Certain debts like child support, alimony, student loans (in most cases), and some taxes typically cannot be discharged. An attorney can advise which of your debts are eligible for discharge.
Several resources and organizations in Omaha and Nebraska can help individuals and businesses with restructuring and insolvency issues:
If you are facing financial difficulties or considering restructuring or insolvency, consider the following steps:
Seeking legal advice tailored to your unique circumstances can protect your interests, preserve crucial assets, and help you achieve the best possible financial outcome.
