Chapter 11 Bankruptcy: Businesses and Individuals

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, [...]

Chapter 7 Bankruptcy: Businesses & Individuals

The word”bankruptcy” is heard everywhere, from coffee shops to church bazaars and the evening news. It’s clear to me that, despite this general knowledge of bankruptcy, few people understand what it means to file for protection under Chapter 7, Chapter 11 or Chapter 13.
Chapter 7 is a liquidating bankruptcy.  It is normally utilized to [...]

Epicentre Contractors Turn to Bankruptcy

Contracting has always been a tough business. Subcontractors often make payroll and provide supplies and labor to a project months before they are paid by the general contractor or owner.
In the case of Charlotte’s Epicentre, a stop work order strangled cash flow for both the developer and the contractors. We’re still seeing clients whose financial [...]

Foreclosure Prevention Resources

To supplement our series for Distressed Homeowners, I found some resources to help preserve home ownership, avoid foreclosure, and protect against foreclosure and debt elimination scams.
Before you work with a firm that claims it can help you “rescue” you from foreclosure be sure to familiarize yourself with:

Foreclosure “rescue” and refinance fraud
Fake “government” modification program
Leaseback/rent-to-buy schemes
Bankruptcy [...]

NC Bar Appointment to Bankruptcy Section Council

I accepted the NC Bar’s nomination to serve on its Bankruptcy Section Council for a three year term that begins this July. It’s an honor to be recognized by your peers to serve in this capacity, and I know that my clients will benefit from my participation.
The Bankruptcy Section of the North Carolina Bar Association [...]

Bankruptcy 101: What Every Lawyer Needs to Know About Bankruptcy

In this economy, most attorneys — no matter what their practice area — have established relationships with clients who are now either in financial difficulty, or are affected by someone else’s financial difficulties. Divorce attorneys, personal injury attorneys, real estate attorneys, employment law attorneys, and construction law attorneys are just a few of the [...]

Failure Can Teach Success

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 findings. I [...]

Primer for Distressed Homeowners: Part 3 of 3

In our first post of this series we covered the foreclosure process and defined some basic real estate terms related to distressed sales.
In the second post, we answered questions on preventing foreclosure, negotiating with a mortgage company, and what to do about an adjustable rate mortgage that will soon reset.
This post addresses questions on short [...]

Bankruptcy Trustee Basics

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) [...]

Small Business Bankruptcy Basics

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 [...]

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