Board Certified Specialist in Bankruptcy
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...]
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...]
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...]
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...]
Everyone knows that in the event payments are missed, there has been a default. However, many business people overlook the fact that there can and often are other contract provisions that do not involve the payment of money which can trigger a default. These are known as non-monetary defaults.Bank loan agreements, leases, and other types of commercial contracts provide for events of … [Read more...]
We frequently advise clients who own a small business and find themselves unable to pay either their personal debts, or those of the company.Some of the company’s debts may be personally guaranteed by the individual owner(s). These clients often want to discuss filing a personal bankruptcy in order to deal with their own debts, and also want to file a bankruptcy for their business in … [Read more...]
9-22-11:THIS POST HAS BEEN SUPERSEDED BY THIS ONE. DISREGARD ALL INFORMATION BELOW.Yes, it costs money to file for bankruptcy protection. 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 making every attempt to … [Read more...]
Sure, your commercial bank is FDIC insured. Does that give you any peace of mind when you're trying to renegotiate your loan or line of credit?It shouldn't. We are aware from our clients that when the FDIC becomes involved, it’s ever so much more difficult – if not impossible – to get anywhere on a forbearance, modification, refinance, or other issues affecting commercial … [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...]