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...]
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...]
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...]
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...]
Can Bankruptcy Cancel a North Carolina Judgment?
February 4, 2011 By
If you have been sued by a creditor and a judgment has been entered against you, the creditor may docket that judgment in any county in which you reside or own real or personal property. The judgment then becomes a lien on all real and property you own that is located within the county, not unlike another mortgage. As long as the judgment amount goes unpaid, it usually increases as the … [Read more...]
Charlotte Home Equity Falls, Self-Financing Options Diminish for Unemployed
January 27, 2011 By
Charlotte made the news this week, but not in a way that makes homeowners happy, especially those who are un- or under-employed. The Case-Shiller Home Price Index found that values in the Charlotte market are back down to 2004 levels. In Charlotte, homes are going for 2004 prices. Last year, more than half of the homes sold in surrounding Mecklenberg County were foreclosures, says Mark Vitner, … [Read more...]
2011 Super Lawyer Richard Mitchell and 2011 Rising Star Heather Culp
January 24, 2011 By
Rick and Heather are pleased to be recognized by the 2011 edition of North Carolina Super Lawyers , Rick as a Super Lawyer and Heather as a Rising Star.Rick is recognized by his peers for excellence in the practice areas of Bankruptcy & Creditor/Debtor Rights (80%), Tax (20%). 2011 marks the fourth consecutive year he has been so honored.Heather won recognition as a "Rising Star" in … [Read more...]