Board Certified Specialist in Bankruptcy
My typical Chapter 11 client is a small to mid-sized, closely held and viable business with cash flow problems. The business offers either goods or services that are in demand,but needs to be reorganized in an orderly manner instead of haphazardly responding to creditor demands. The source of the financial problems varies; common problems include the decline of the housing market, growth and … [Read more...]
I was quoted in The Charlotte Observer in 2009 regarding a $515 million luxury condo, office and retail project in Cornelius, NC that wass being foreclosed upon. Many people are surprised to learn that the developers hadn't missed payments. Then why the foreclosure? Because the project wasn't hitting agreed-upon milestones -- the developers hadn't leased enough of the space. This is what … [Read more...]
Everyone knows that in the event payments are missed, there has been a default. However, many business people overlook the fact that there can and often are other contract provisions that do not involve the payment of money which can trigger a default. These are known as non-monetary defaults. Bank loan agreements, leases, and other types of commercial contracts provide for events of … [Read more...]
I frequently advise clients who own a small business and find themselves unable to pay either their personal debts, or those of the company. Some of the company’s debts may be personally guaranteed by the individual owner(s). These clients often want to discuss filing a personal bankruptcy in order to deal with their own debts, and also want to file a bankruptcy for their business in order … [Read more...]
The word"bankruptcy" is heard everywhere, from coffee shops to church bazaars and the evening news. It's clear to me that, despite this general knowledge of bankruptcy, few people understand what it means to file for protection under Chapter 7, Chapter 11 or Chapter 13. Chapter 7 is a liquidating bankruptcy. It is normally utilized to obtain a “fresh start” for an individual … [Read more...]
My friend and fellow bankruptcy attorney Susanne Robicsek and I recently spoke to a group of local small business owners gathered at Central Piedmont Community College in Charlotte, North Carolina. In this tough economy business owners are wise to acquaint themselves with the legal options they may need to employ if their companies hit the shoals. It was a pleasure spending an afternoon trying … [Read more...]