Janvier Law Firm, PLLC

Raleigh Bankruptcy Law Blog

Recent personal and commercial bankruptcy filings increase

Personal bankruptcy protections are a valuable resource that can help struggling consumers looking to offload debt and enjoy a fresh financial start. The American Bankruptcy Institute recently reported that bankruptcies increased during the month of August, though year-over-year bankruptcy numbers are down. Both consumer and commercial bankruptcies were up during the month of August. Consumer bankruptcies increase by 4% in August. Commercial bankruptcies increased by 3% in August.

Bankruptcy protections can help struggling consumers and businesses enjoy debt relief. Recent changes in bankruptcy laws have increased access to bankruptcy protection for struggling businesses, family farmers and veterans. Dealing with debt everyday can be overwhelming which is why there are both liquidation and reorganization bankruptcy options for both struggling consumers and struggling businesses. Chapter 7 bankruptcy is a liquidation bankruptcy option that allows the filing party to repay creditors by liquidating non-exempt assets.

How to manage credit card debt

What could we do as a society if someone spread $1 trillion among the citizens of the United States? People might pay off their homes, put their kids through college or invest for the future. After all, even a portion of that amount is life-changing money.

Why $1 trillion? That’s the collective amount Americans owe in credit card debt.

Chapter 13 bankruptcy help with a fresh financial start

Chapter 13 personal bankruptcy protection is important for struggling consumers to fully understand because it serves as such a valuable resource to consumers seeking debt relief from their overwhelming debt. Chapter 13 bankruptcy is a reorganization bankruptcy option for struggling consumers and homeowners with a reliable source of income to consider.

Chapter 13 bankruptcy works by developing a repayment plan that will allow the filing party to repay their debt in installments over a 3 to 5-year period. It is important to note that the what is repaid is part of the bankruptcy process and may vary based on the filing party's income, assets and circumstances. Once the repayment plan is complete, the filing party will receive a debt discharge and any debts not addressed in the bankruptcy will be discharged.

North Carolina barbecue finds buyer in bankruptcy

Business bankruptcy resources are useful for struggling businesses to be familiar with. A famed North Carolina barbecue restaurant looks to be sold as part of a bankruptcy process after the restaurant filed for bankruptcy protection earlier this year. The barbecue restaurant has been in business for 6 decades prior to its recent financial trouble. A recent purchase agreement for the barbecue was filed in the bankruptcy court. The proposed sale, if approved by the bankruptcy court, will be for $350,000.

The purchaser is a group of community members who came together to form a company to purchase the restaurant so it could continue to serve the community. The bankrupt barbecue claimed $350,000 in debts and $100,000 in assets in its earlier bankruptcy filing. Its debts include liens on equipment loans and unpaid state and federal taxes. A representative for the purchaser noted that the hope is for the barbecue business to return to its former glory.

How jewelry and other property is handled during bankruptcy

Knowing what to expect from the bankruptcy process can help calm some of the nerves individuals filing for bankruptcy may have. Personal bankruptcy protection options are an important resource for struggling consumers which is why they should be familiar with how bankruptcy protections work and can help them.

In a recent episode of a popular television show, a wealthy couple must file for bankruptcy and learns they may lose their home, car and the wife's wedding ring. When a filing party is going through the Chapter 7 bankruptcy process, it is helpful for them to be familiar with how asset liquidation is handled. Chapter 7 bankruptcy is a personal bankruptcy protection option that allows assets to be liquidated to repay creditors. Some assets are protected, or exempted, from the process such as some personal property or jewelry.

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.

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