How business owners filing for bankruptcy can avoid foreclosure

On Behalf of | Aug 28, 2020 | Chapter 13 Bankruptcy |

For many struggling businesses in North Carolina, filing for bankruptcy might seem like the only option. However, the process can put business assets, like real estate, at risk. An individual will have to make full mortgage payments to his or her lender, and if he or she falls behind, the lender could foreclose on his or her property. However, there are steps that a business owner can take to try to prevent foreclosure from happening.

Options for a business owner who’s facing foreclosure

Once a business owner files for bankruptcy, he or she might be facing foreclosure if he or she fails to keep up with the mortgage payments. In some states, lenders are required to inform business owners before the process begins, giving people who own companies the chance to fight in court. Other states don’t have this requirement, but business owners can still argue their cases in court once the foreclosure process starts.

In some cases, business owners might be able to use the “act of God” argument to prevent their buildings from being foreclosed. They can also speak with their banks or lenders directly and try to negotiate different payment plans, particularly in the middle of a crisis.

Where to go for assistance with filing for bankruptcy

Individuals looking for assistance with filing for bankruptcy – commercial can speak with an attorney about the process. A lawyer may assist his or her clients with reviewing their options, figuring out the best way to proceed and beginning the appropriate filings. An attorney may also be able to help delay foreclosure or stave it off altogether. While working with a lawyer, a person might be able to figure out a payment plan that allows him or her to be free of his or her debts within three to five years.