YOUR GUAM LAWYER

Attorney George M. Butler of BUTLER TELFORD BUTLER has been the foremost bankruptcy practitioner on Guam.  Mr. Butler has more than 25 years experience in this highly technical specialization of law.  He is known throughout the community for his compassion and sensitivity to the needs of familes and indivduals suffering from severe financial burden.  Respected for his candor and zealous advocacy for the debtor, George remains a formidable ally to those in need of serious debt relief.  Mr. Butler has relocated, but will continue his service as a bankruptcy practitioner on Guam through an exclusive Of Counsel relationship with Attorney Gary Wayne Francis Gumataotao.  In this manner, the attorneys intend to expand and solidify their critical and unique services to our community.  Both are participating members of the National Association for Consumer Bankruptcy Attorneys.   

                                    Bankruptcy Basics

Chapter 7: Liquidation 

• Chapter 7 is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. Petitioners whose debts are primarily consumer are subject to a "means test" designed to determine whether the case should be permitted to proceed under chapter 7. If your income is greater than the median income for the territory of Guam (residence) and your family size, in some cases, creditors have the right to file a motion requesting that the court dismiss your case under § 707(b) of the Code. It is in the discretion of the court to decide whether the case should be dismissed.
• Under chapter 7, you may claim certain of your property as exempt under governing law. A trustee may have the right to take possession of and sell the remaining property that is not exempt and use the sale proceeds to pay your creditors.
• The purpose of filing a chapter 7 case is to obtain a discharge of your existing debts. If, however, you are found to have committed certain kinds of improper conduct described in the Bankruptcy Code, the court may deny your discharge and, if it does, the purpose for which you filed the bankruptcy petition will be defeated.
• Even if you receive a general discharge, some particular debts are not discharged under the law. Therefore, you may still be responsible for most taxes and student loans; debts incurred to pay non-dischargeable taxes; domestic support and property settlement obligations; most fines, penalties, forfeitures, and criminal restitution obligations; certain debts which are not properly listed in your bankruptcy papers; and debts for death or personal injury caused by operating a motor vehicle, vessel, or aircraft while intoxicated from alcohol or drugs. Also, if a creditor can prove that a debt arose from fraud, breach of fiduciary duty, or theft, or from a willful and malicious injury, the bankruptcy court may determine that the debt is not discharged.

Chapter 13: Repayment of All or Part of the Debts of an Individual with Regular Income 

• Chapter 13 is designed for individuals with regular income who would like to pay all or part of their debts in installments over a period of time. You are only eligible for chapter 13 if your debts do not exceed certain dollar amounts set forth in the Bankruptcy Code.
• Under chapter 13, you must file with the court a plan to repay your creditors all or part of the money that you owe them, using your future earnings. The period allowed by the court to repay your debts may be three years or five years, depending upon your income and other factors. The court must approve your plan before it can take effect.  Note that the first payment under the proposed plan must be paid by the debtor no later than thirty days after the filing of the petition. 
• After completing the payments under your plan, your debts are generally discharged except for domestic support obligations; most student loans; certain taxes; most criminal fines and restitution obligations; certain debts which are not properly listed in your bankruptcy papers; certain debts for acts that caused death or personal injury; and certain long term secured obligations.

Chapter 11: Reorganization 

• Chapter 11 is designed for the reorganization of a business but is also available to consumer debtors. Its provisions are quite complicated, and any decision by an individual to file a chapter 11 petition should be reviewed with an attorney.

Chapter 12: Family Farmer or Fisherman 

• Chapter 12 is designed to permit family farmers and fishermen to repay their debts over a period of time from future earnings and is similar to chapter 13. The eligibility requirements are restrictive, limiting its use to those whose income arises primarily from a family-owned farm or commercial fishing operation.

Bankruptcy Crimes

A person who knowingly and fraudulently conceals assets or makes a false oath or statement under penalty of perjury, either orally or in writing, in connection with a bankruptcy case is subject to a fine, imprisonment, or both. All information supplied by a debtor in connection with a bankruptcy case is subject to examination by the Attorney General acting through the Office of the United States Trustee, the Office of the United States Attorney, and other components and employees of the Department of Justice.

A Word About Fees in Bankruptcy Cases.

We are not the least expensive law firm nor do we advertise "low ball" prices in order to "drive" our business.

Instead, we never charge for first consultation in consumer bankruptcy matters and we fully disclose all fees and costs at the onset. 

We will initiate paperwork and accept clients upon as little as $200 in down payment for a Chapter 7 or a Chapter 13 case.

Clients have access to an attorney from the beginning to the close of the case.  Some other firms relegate intake to a paralegal and the client only meets the attorney after he has paid in full.

We always accompany our clients to the creditor meetings at the Court.

Mr. Butler has more than 25 years experience in bankruptcy practice.

Mr. Gumataotao has 30 years experience in business, management, insurance & surety bond claims, collections and commercial transactions.