‘DebtStoppers’ Bankruptcy Firm Approved for Own Chapter 11 Exit

Semrad Law Firm, a Chicago-based consumer bankruptcy law firm also known as DebtStoppers, received court approval for a Chapter 11 reorganization plan which aims to pay its creditors over several years.

The plan, which calls for a third-party administrator to investigate potential claims against company insiders, will be approved after certain minor changes are made, Judge John T. Dorsey of the US Bankruptcy Court for the District of Delaware said at a hearing Tuesday. The plan is supported by the firm’s creditors.

Semrad in April filed Chapter 11 and said it owed $3.1 million in secured debt to Old National ...