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Raleigh Bankruptcy Law Blog

The basics of Chapter 11 bankruptcy protection

Chapter 11 bankruptcy is in important tool for struggling business and individuals to use that can both help a business get back on its feet and protect the personal assets of the business owner. Chapter 11 bankruptcy can help a struggling business create a repayment plan that provides the opportunity for future growth of the business.

In addition to providing a reorganization plan opportunity for the struggling business, and allowing it to renegotiate some debts or seek new sources of capital, Chapter 11 bankruptcy can protect some of the personal assets of the business owner in circumstances when they have a sole proprietorship or partnership. Any type of business, including corporations, may benefit from the Chapter 11 bankruptcy process which is important to understand. It also typically allows the business owner to remain in day-to-day operation of the business.

How Chapter 7 bankruptcy protection works

Chapter 7 bankruptcy is a type of personal bankruptcy protection which can help struggling consumers get out of debt. Living with overwhelming debt can be stressful which is why struggling consumers should be familiar with the personal bankruptcy protection options available to them to help them overcome crushing debt.

Chapter 7 bankruptcy is generally considered a liquidation bankruptcy. The bankruptcy court will provide protection to the struggling consumer. An automatic stay is the first step when the filing party files for bankruptcy protection. The automatic stay protects the filing party from any further collection actions and creditors while the bankruptcy process progresses. This can provide some initial relief for the struggling consumer. Further relief will also be provided through the process.

Raleigh restaurant owner files for bankruptcy protection

Chapter 11 bankruptcy is designed to help struggling businesses become successful once more. A company that owns several restaurants in the Raleigh area recently filed for Chapter 11 bankruptcy protection. The restauranteur currently owns 4 restaurants in the area and used to own others. According to the court filing, the restaurant owner has assets totaling $1.1 million but owes $2.57 million in debts. Court records show that the restaurant owner owes money to a bank, a realty company and in taxes.

The restaurant owner noted the hospitality business has been difficult and margins have been small. In his statement he further noted that filing for Chapter 11 bankruptcy protection was necessary to protect employees, the investments of shareholders and the business operations. The restaurant owner also noted that the bankruptcy filing will not impact the current operations of his 4 restaurants in the Raleigh area.

How Chapter 13 bankruptcy may be able to help you

Chapter 13 bankruptcy is a personal bankruptcy option that allows the filing party to repay creditors according to a repayment plan developed with the help of the bankruptcy court. It differs from Chapter 7 personal bankruptcy because it does not involve the liquidation of assets but it is also important to keep in mind that it helps the filing party reorganize their debts so the amount they have to repay will also be worked out with the help of the bankruptcy court.

Chapter 13 bankruptcy is an option for those with a reliable source of income with which they can repay debts according to the established repayment plan to consider. The repayment plan will allow them to repay their debts over a period of time which is usually 3 to 5 years. Chapter 13 bankruptcy protection has the benefits of allowing struggling consumers to repay their debts over time and enjoy a debt discharge at the end of the process.

An automatic stay will quiet creditors

Anyone with debt knows the feeling you get when a creditor calls or a collection letter comes in the mail. The twisting knot in your stomach, the prickling fear on your neck, the resulting feeling of hopelessness as they recite the same old demands and threats; it’s a painful experience, but it can be stopped.

When debt seems insurmountable, the answer may be Chapter 7 bankruptcy. This process will eliminate virtually all your credit card bills, medical bills and other unsecured debt. Possibly more importantly though, once you file, creditors – by law – will no longer be able to contact you.

North Carolina bicycle company closing its doors

This blog recently discussed how business bankruptcy options can help struggling businesses. As is true of personal bankruptcy, there are both reorganization and liquidation bankruptcy options for struggling businesses and the best option depends on the needs and goals of the business.

A North Carolina-based bicycle store is closing its doors throughout the country. One of the nation's largest bicycle stores will close 102 stores nationwide as part of the bankruptcy process. The company operates stores in 20 states. The stores are in the process of liquidation. The liquidation process will involve discharging debts, usually to obtain the greatest amount possible to repay creditors.

Bankruptcy protection for struggling businesses

When a business is struggling, its owners should be familiar with business bankruptcy protections that may be available to help. Corporations, partnerships and sole proprietorships that are struggling with overwhelming business debt and looking to get back on their feet may all benefit from Chapter 11 bankruptcy protection.

Corporations, partnerships and sole proprietorships would certainly benefit from understanding Chapter 11 bankruptcy protection and what it involves. Chapter 11 bankruptcy is a reorganization bankruptcy option that allows the struggling business to reorganize its debts and seek sources of new capital while remaining in business. Guided by the bankruptcy court, the business can usually remain in business during the process and the business owners can remain in charge of the daily operations of the business.

Qualifying for Chapter 7 bankruptcy

This blog recently discussed Chapter 7 bankruptcy exemptions and their importance to consumers filing for Chapter 7 bankruptcy protection. Because Chapter 7 bankruptcy provides important protections for consumers, it is helpful for struggling consumers to know how to qualify for Chapter 7 bankruptcy.

Chapter 7 bankruptcy is a personal bankruptcy option that allows the filing party to liquidate assets to repay creditors. To qualify for Chapter 7 bankruptcy, the filing party must meet what is referred to as the means test. The means test looks at the average income of the filing party for six months preceding the filing party's application for bankruptcy. The average monthly income is then compared with the state's median income.

Chapter 7 bankruptcy exemption basics

Chapter 7 bankruptcy is an important resource for struggling consumers seeking options to help them with their financial struggles. Chapter 7 bankruptcy is a personal bankruptcy option that can provide important protections to struggling consumers, as well as debt relief.

Chapter 7 bankruptcy is a personal bankruptcy option that allows the filing party to liquidate non-exempt assets to repay creditors and enjoy a fresh financial start. Chapter 7 bankruptcy is one type of personal bankruptcy protection and it is worthwhile for interested consumers to understand the options available and which might be best for them. While Chapter 7 bankruptcy is a liquidation bankruptcy option for individuals who qualify, certain categories and types of property may be protected from the process.

Sears announces additional store closures as part of bankruptcy

This blog recently discussed how Chapter 11 bankruptcy can help struggling businesses. Sears recently announced that it will close an additional 40 stores as part of its Chapter 11 bankruptcy process to help it in its efforts to return to profitability. The retailer is currently in the process of closing 188 stores including at least 4 in North Carolina, including one in Raleigh. Both Sears and Kmart stores are included in the store closures.

Following all of the closures, the company is expected to have fewer than 500 location remaining open. The company estimates that if it survives the Chapter 11 bankruptcy protection process, 400 stores could remain profitable on their own. As this blog recently discussed, the Chapter 11 bankruptcy process for businesses is a reorganization bankruptcy and the goal of the process is for the company to stay in business and return to profitability.

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