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...]
Marital Property and Bankruptcy: Allocating Exempt Property
October 7, 2011 By
Each state has different laws on what is recognized as exempt property, that is, property that is out of the reach of creditors (including bankruptcy trustees). Further, there are federal exemptions. We wrote about this extensively and you may find it helpful reading. Here's the kind of question that occasionally comes up when we counsel a married couple about bankruptcy. Q: The exempt … [Read more...]
Charlotte Bankruptcy Fees UPDATED
September 22, 2011 By
Yes, it costs money to file for bankruptcy protection. This post covers court costs and legal fees related to Chapter 7, Chapter 13 and Chapter 11 bankruptcy cases. Too often, we counsel folks who qualify for bankruptcy but who’ve been spending their money trying to avoid filing. They spend it on so-called debt relief programs, they spend it trying to keep their home out of foreclosure, and … [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...]
University of Miami Football Players Could Face Clawback Powers of the Bankruptcy Trustee
August 29, 2011 By
Sports fans familiar with some University of Miami football players' affiliation with Nevin Shapiro, a convicted Ponzi schemer who reportedly lavished them with gifts, may not realize that those same players may find themselves facing Shapiro's bankruptcy trustee. "Certainly, we have reviewed the various reports regarding certain athletes receiving, cash, gifts, and other benefits from Mr. … [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...]