I'm a bankruptcy attorney, not a marriage counselor. But this article in INC magazine resonated with me, based on the number of business owners and their spouses I've seen struggle with the aftermath of a failed business. Here's an excerpt: One reason business failure is so hard on marriage is that the entrepreneur and the spouse experience it differently. The entrepreneur may regret his … [Read more...]
Chapter 11 Bankruptcy Primer, Part 1 of 2
August 23, 2011 By
Chapter 11 bankruptcy cases by large corporations like bookseller Borders make the news more frequently than smaller companies using Chapter 11, leaving some business owners wondering whether Chapter 11 is an option for them. Chapter 11 is not as straightforward to explain as Chapter 7 or Chapter 13, so we designed this FAQ: Q: How "big" does the owner's business have to be to even consider … [Read more...]
Small Business Forecast for Charlotte: Troubled
August 17, 2011 By
A recent economic report focused on the outlook for small businesses. It highlighted several sectors that are important in the Charlotte region. ...cost and pricing pressures will need to be managed differently depending upon which industry a small business operates. Summarizing these differences for several key industries: The construction industry will face higher costs combined with lower … [Read more...]
Receivership: North Carolina Bankruptcy Equivalent
August 12, 2011 By
While most people have some familiarity with the concept of bankruptcy under federal law, many people are unaware of the concept of receivership under North Carolina law. What is receivership? In a receivership, the debtor’s affairs are generally wound down and the debtor dissolved (if it is a corporate entity); however, it is possible for the debtor to regain control of its financial … [Read more...]
Chapter 11 Bankruptcy Case Results From Legal Defense Costs
August 11, 2011 By
Here is a cautionary tale for those considering costly litigation: it might force you out of business. This summer, the U.S. Bankruptcy Court for the Western District of North Carolina approved the sale of a manufacturer's assets as part of its Chapter 11 bankruptcy case filed by Mitchell & Culp, PLLC. The Chapter 11 case was filed in 2010 in order to allow the debtor to reorganize its … [Read more...]
Prevent Homeowners Association Foreclosure With Bankruptcy
July 29, 2011 By
This video of a Charlotte, NC family being foreclosed upon by their homeowners association (HOA) is a cautionary tale illustrating the power of HOAs. If you are facing a foreclosure by your homeowners association, or are substantially behind on HOA dues and have concerns about how to resolve this, you are not alone and a bankruptcy filing may be a viable solution. A story in The … [Read more...]
Small Business Financial Literacy: The Cash Flow Statement
July 25, 2011 By
When we engage small business owners in a bankruptcy counseling session we often ask, how much revenue does the business need to simply break even: pay its debts and obligations (including payroll and taxes) as they become due? Often, the owner sitting across from the table from us has no idea how to answer that question. This Q&A on small business finance should be read by all small … [Read more...]
Second Mortgages and Bankruptcy
July 15, 2011 By
According to the Wall Street Journal, nearly 40% of homeowners who took out second mortgages are underwater on their loans, more than twice the rate of owners who did not take out such loans. Second mortgages have made it more difficult for troubled borrowers to negotiate loan modifications with lenders. Economists say borrowers with second mortgages on homes that are underwater are far more … [Read more...]
Threatened With Foreclosure? Bankruptcy May Help You Save Your Home
July 12, 2011 By
We have seen how sloppy and aggressive foreclosure processes have taken a toll on homeowners, neighborhoods and the economy in general. Last week's news of a House panel examining lapses and gaps in mortgage servicing regulation caught my attention, but I don't expect a speedy resolution. State attorneys general and the Justice Department are advanced talks with JPMorgan Chase & Co. … [Read more...]
A Bookkeeper or Bankruptcy?
July 6, 2011 By
This article on hiring a bookkeeper resonates with me, because I so often see business owners who could have avoided bankruptcy if they had done so. Entrepreneurs thrive on a DIY mentality: Do everything you can yourself and don't pay for anything new until you have absolutely have to. It's especially difficult to justify hiring financial help like a bookkeeper. With user-friendly software … [Read more...]