Yesterday General Motors announced second-quarter profits that exceeded expectations and came as G.M. was putting the finishing touches on an initial public stock offering. This is good news from a company forced into Chapter 11 bankruptcy a little more than a year ago. According to Dow Jones Daily Bankruptcy Review, "After recent years of financial distress and bankruptcy filings, … [Read more...]
Fast-Track Arbitration Helps Debtors & Creditors
August 12, 2010 By
My long experience in determining claims of creditors for distribution in liquidation cases has led to a new experience. I've been appointed by the Superior Court of Cabarrus County as the arbitrator to determine the distribution of approximately $500,000 to between more than 150 potential claimants. The process has been carefully crafted to avoid long, drawn-out, and expensive litigation. … [Read more...]
Small Business Owners, Plan to Stay OUT of Bankruptcy
July 7, 2010 By
A recent column in Business Week about small business lending examined the role of the personal guarantee. "Given that most business loans are unsecured, a lender has little recourse, when a loan goes sour, beyond the personal guarantee of principals. And if the principals backing a loan are broke, a personal guarantee is virtually useless." The article went on to tell prospective borrowers … [Read more...]
Personal Loan Guarantees for Business
June 24, 2010 By
After forty years of helping small business owners with their financial difficulties, I wish more of them understood how the personal guarantee can send them into bankruptcy. It's difficult for self-employed people and small business owners to get capital, and the lack of capital is a big part of the reason business owners file for bankruptcy when their businesses stumble or fall -- a vicious … [Read more...]
Cash for Keys?
March 25, 2010 By
The copywriter who thought up "Cash for Keys" did a good job. Unfortunately, the process isn't as simple as the catchy title implies. You don't simply hand the keys over to the mortgage company, take your $1000 to put down on an apartment and walk away. [important]Unless you file for bankruptcy protection, any time you sell or surrender your home for less than the balance due on the mortgage(s) … [Read more...]
Rick Mitchell: Included in 2010 Super Lawyers
March 4, 2010 By
Each year Super Lawyers magazine names attorneys in each state in 70 practice areas who have attained a high degree of peer recognition and professional achievement. Nevertheless, they included me in their listing for the third year running. I probably would have named it something besides Super Lawyers, but since the selection process has been blessed by courts and bar associations, I'll just … [Read more...]
Charlotte Bankruptcy Education for Realtors & Financial Professionals
January 19, 2010 By
With bankruptcy filings surging, people are turning to non-bankruptcy financial professionals for bankruptcy counseling. These professionals include real estate agents, non-bankruptcy attorneys, financial advisors and others. Then there's the internet. It's human nature to try to help a client, but sometimes the advice given by someone with no bankruptcy training can do the person in … [Read more...]
Failure Can Teach Success
December 22, 2009 By
The Kauffman Foundation just published a study of 549 company founders of successful businesses in high-growth industries. I zeroed in on this finding: "40 percent cited lessons learned from failures as extremely important – the second-highest “extremely important” rating." Lessons from forty years in bankruptcy court After forty years of practicing law I can validate Kauffman's … [Read more...]
Bankruptcy Trustee Basics
October 31, 2009 By
In addition to my private practice, I serve as a Chapter 7 Trustee for the United States Bankruptcy Court for the Western District of North Carolina. Few people know what this means and how this service helps my private practice clients, so here's a primer. What's a bankruptcy trustee? Chapter 7 Trustees (also known as panel trustees) are not government employees. Here in the Western District … [Read more...]
Small Business Bankruptcy Basics
October 30, 2009 By
My friend and fellow bankruptcy attorney Susanne Robicsek and I recently spoke to a group of local small business owners gathered at Central Piedmont Community College in Charlotte, North Carolina. In this tough economy business owners are wise to acquaint themselves with the legal options they may need to employ if their companies hit the shoals. It was a pleasure spending an afternoon trying … [Read more...]