Janvier Law Firm, PLLC

Raleigh Bankruptcy Law Blog

North Carolina company files for Chapter 11 bankruptcy protection

Chapter 11 bankruptcy can help struggling businesses get back on track. A logistics company based in North Carolina recently filed for Chapter 11 reorganization bankruptcy protection. The owner of the company cited natural disasters in recent years as having a negative impact on the business. The filing company listed that is has three truck and employs five drivers and also operates a storage facility. The trucking business and storage facility will continue to operate as the company reorganizes.

In its Chapter 11 bankruptcy filing, the company listed that is has between 50 and 99 creditors and fewer than $1 million in assets. It also listed that is has liabilities greater than $3 million which includes $1.3 million in secured claims and approximately $1.7 million in unsecured claims. The company also listed its current revenue as approximately $3.2 million. According to the bankruptcy filing, the company earned close to $10.4 million in 2018 and approximately $8.7 million in 2017.

Surprise! You owe the hospital a lot of money

Navigating the health care system today is no easy feat. Patients often attempt to understand their policy and spend countless hours selecting in-network facilities that should provide them with the care they think kis covered under their health insurance. Unfortunately, recent studies have revealed that despite their best efforts, many patients are left with additional medical bills that take them by surprise.


Broad protections against creditor harassment during bankruptcy

One of the most difficult aspects of struggling with overwhelming debt is creditor harassment. This blog recently discussed the automatic stay during bankruptcy that can help provide some relief to struggling consumers and homeowners in North Carolina from creditor harassment but it is important for those seeking debt relief to be familiar with the full range of personal bankruptcy protections available to help them.

Because of the automatic stay protections, once the filing party has filed for bankruptcy protection, creditors are prohibited from pursuing further collection actions during the bankruptcy process. If the creditor violates these protections, the filing party may be able to pursue damages against them. Automatic stay protections are available in both Chapter 7 bankruptcy and Chapter 13 bankruptcy which are both personal bankruptcy options.

A closer look at the automatic stay during bankruptcy

Both primary types of personal bankruptcy protection, Chapter 7 and Chapter 13 bankruptcy, and including any type of bankruptcy relief, serves as a resource to help struggling consumers protect what they care about a enjoy a fresh financial start. The automatic stay that is associated with both types of personal bankruptcy protections, as well as business bankruptcies, can help provide valuable breathing room for the struggling consumer while they seek bankruptcy relief.

In general, Chapter 13 bankruptcy serves as a reorganization bankruptcy option for struggling consumers while Chapter 7 bankruptcy serves as a liquidation bankruptcy option that allows the filing party to liquidate non-exempt assets to repay creditors. Certain property is exempted, or protected, from the process and there are requirements to be eligible for either type of bankruptcy that anyone contemplating bankruptcy protection should be familiar with.

A look at the different personal bankruptcy protections

Different bankruptcy options are available for individuals in different situations so it is helpful to take a look at the different options and compare and contrast which is best for the party considering filing for bankruptcy. All personal bankruptcy protections provide certain types of help to filing parties, including a consumer debt relief and an automatic stay, but is helps to be familiar with the benefits and workings of different types of personal bankruptcy.

There are two primary types of consumer bankruptcy protection including Chapter 7 bankruptcy and Chapter 13 bankruptcy. Taking a look at Chapter 7 bankruptcy first, it is a liquidation bankruptcy process that allows the filing party to liquidate non-exempt assets to repay creditors and enjoy a fresh financial start. Just like Chapter 13 bankruptcy, there are requirements to qualify based on income and debt and filing parties enjoy the automatic stay which prevents creditor collection actions while the bankruptcy process progresses.

Chapter 11 bankruptcy help for struggling businesses

Chapter 11 bankruptcy can help struggling businesses through a challenging time. Chapter 11 bankruptcy provides a bankruptcy reorganization resource to struggling businesses that have heavy debt burdens but want to remain in business and get the business back on its feet.

Chapter 11 bankruptcy involves the development of a reorganization plan with the help of the bankruptcy court. The process provides an opportunity for the struggling businesses to renegotiate leases and contracts and seek additional sources of capital to pay down debts. Creditors have an incentive to work with the business in a Chapter 11 bankruptcy because they will generally fair better and receive more through that process than if the struggling business goes through a Chapter 7 liquidation bankruptcy.

Bankruptcy help with foreclosure

Facing foreclosure can be alarming and even terrifying, which is why those facing the uncertainty of losing their home should be familiar with the legal protections available to them. Chapter 13 bankruptcy may be one option that may be able to help protect a family home.

When a struggling consumer is facing overwhelming debt and all the stress that goes along with that, the last thing they want to also have to face is the prospect of losing their home. Different legal options may be able to help them guard against this. Chapter 13 bankruptcy is a personal bankruptcy option that allows the struggling consumer to reorganize their debt and repay it over a period of time and may be able to help with foreclosure.

How Chapter 7 bankruptcy exemptions can help

Chapter 7 bankruptcy exemptions are one of the most important parts of the Chapter 7 personal bankruptcy process to understand. Chapter 7 bankruptcy can help those struggling with overwhelming debt discover the debt relief they need which is why struggling consumers considering filing for Chapter 7 bankruptcy protection should be familiar with how the process works and how it can help them.

The way that Chapter 7 bankruptcy protection works is that it allows the filing party to liquidate non-exempt assets to repay creditors and enjoy debt relief. Assets that are exempted are protected from the process. Property that is protected includes several categories of property, as well as a possible wild card exemption which can protect property that does not fall under one of the other exemptions or has reached the value limit for the property category.

Rebuilding your credit score after bankruptcy

Many across North Carolina hesitate to make the decision to file bankruptcy out of fear on how it will affect their financial futures. Will you be able to get a credit card or a loan? Will you be able to purchase real estate or a car? Will bankruptcy follow you around forever?

For those considering Chapter 7 bankruptcy, the bankruptcy will stay on your credit report for 10 years and cause an initial drop in your credit score. However, you can begin to take steps almost immediately after filing to improve your credit score:

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