November 1, 2011 the filing fees for each chapter will be as follows: Chapter 7--$306 Chapter 11--$1,046 Chapter 12--$246 Chapter 13--$281 Chapter 15--$1,046 There are other miscellaneous fee increases for certification, exemplification, audio recording, records searches, record retrieval, and returned checks. Source: http://www.wieb.uscourts.gov/ … [Read more...]
Bankruptcy Protection
October 21, 2011 By
Bankruptcy Protection for Developers, Contractors, Subcontractors and Vendors Perhaps because of the stigma of bankruptcy, or desperation to hold on to something they can no longer afford, we see clients who act against their own financial interests. They do things that can’t be undone or mitigated when they finally do file for bankruptcy protection. We see this acutely in the construction … [Read more...]
Liability for Unpaid Taxes: Five Remedies, Including Bankruptcy
October 3, 2011 By
Often, new client calls to our offices are prompted by the unpleasant discovery that a tax authority wiped out their bank accounts to pay back taxes. Callers want to know if there is anything they can do to get their money back (generally, it’s gone for good) and if bankruptcy is an option for their larger financial troubles. Five options for taxpayers who are unable to pay their taxes in full … [Read more...]
Trend: More Elderly and High Income Earners Need Bankruptcy Protection
September 20, 2011 By
I’m writing this after an unusually busy day, which finds me still in the office at the late hour of 10:45 PM. I spent some of my day assisting yet another elderly client with financial problems. Surprised? Don’t be. Rick and I and our paralegals discussed at lunch today the fact that we seem to be seeing more and more elderly people with debts that they cannot pay. The causes vary … [Read more...]
Chapter 11 Bankruptcy Primer, Part 2 of 2
August 31, 2011 By
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 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...]
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...]
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...]