Board Certified Specialist in Bankruptcy
While Chapter 11 bankruptcy is not as frequently employed as Chapters 7 and 13 it is appropriate in some circumstances. This post, along with the first part in the series, will answer many frequently-asked questions about Chapter 11. Q: What questions does Mitchell & Culp, PLLC ask a prospective Chapter 11 client to determine whether they should “collapse the company” or restructure in … [Read more...]
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...]
Individuals in need of Chapter 13 bankruptcy protection often begin searching for a law firm on the internet, a confusing endeavor at best thanks to the troubled economy because the demand for bankruptcy lawyers has increased faster than the supply of knowledgeable and experienced practitioners.How do we know this? Because we so often find ourselves unwinding the messes that … [Read more...]
I recently filed a Chapter 11 bankruptcy case to stop a foreclosure that was threatening a well known local church, demonstrating the power of the automatic stay. Chapter 11 is not just for businesses Greater Salem Church was threatened with the loss of its church building. The Chapter 11 filing caused the automatic stay to stop the foreclosure proceeding. This will allow the church membership … [Read more...]
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...]
Since a good percentage of our bankruptcy clients are small business owners, I keep an eye out for articles on financing.This article from Christian Science Monitor caught my eye because of the contradictory messages about small business lending. While the federal reserve system is "encouraging" banks to lend to small businesses, banks counter that small businesses simply aren't asking for … [Read more...]
Chapter 11 bankruptcy is a reorganization. More businesses than individuals file for Chapter 11; it is an orderly process that allows the debtor time and space to reorganize its financial affairs and repay its creditors some or all of the debt owed.It is a vehicle through which debtors can reject or cancel certain leases, contracts, and other debt obligations, and get breathing room to obtain … [Read more...]
With the jobless recovery hitting the Charlotte region particularly hard, we're getting a steady stream of calls asking for help preventing home foreclosures, forced sales and sheriff's sales, and facilitating short sales.The general news press has gotten sloppy in the language it uses for distressed real estate, so let's start there:Forced sale is not used often, but when it is it would … [Read more...]
Reader's Digest just announced that it is filing a prepackaged Chapter 11 bankruptcy case. Its goal is to reduce its debt to one-fourth of the present level ($2.2 billion). The company is essentially using Federal bankruptcy law as a financial planning tool.At the present level of debt, Reader's Digest is not a viable company. At the reduced level, it will be viable, thus allowing a … [Read more...]