Janvier Law Firm, PLLC

Raleigh Bankruptcy Law Blog

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:

Comparing and contrasting bankruptcy options

There are different personal bankruptcy protection options to suit different needs which is why it is helpful to be familiar with those are when a consumer finds themselves struggling with overwhelming debt. Different personal bankruptcy options are better suited for the different circumstances and goals of the filing party but all afford the opportunity to enjoy debt relief.

There are two primary types of personal bankruptcy. Chapter 7 bankruptcy protection is for filing parties that do not meet a certain income threshold who wish to liquidate their non-exempt assets to repay creditors. It is important to note that certain assets are exempted from the process which affords addition protections to the filing party. Chapter 13 bankruptcy is the other primary type of personal bankruptcy protection.

Can Chapter 13 bankruptcy help with foreclosure?

Personal bankruptcy options can help with the many concerns those facing overwhelming debt face. Those with overwhelming debt are also likely facing a significant amount of stress related to their debts, especially if they are facing the foreclosure process and the prospect of losing their family home.

Different personal bankruptcy options are available to help struggling consumers and homeowners in their individual circumstances, based on the needs they may have for the process. Chapter 13 bankruptcy, for example, is an option that may be able to help with the foreclosure process. Chapter 13 bankruptcy may be able to help homeowners who are facing the foreclosure process .

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.

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