November 23, 2017

Chapter 11 or 13 for Troubled Businesses ?

This month news of an oil and gas producer filing for Chapter 11 bankruptcy protection made news. The reason cited for the financial difficulty is the drop in oil prices, which have have slid some 50 percent since June. My Chapter 11 clients own small to mid-sized businesses, but they have the same problems as bigger companies who need to reorganize under the orderly process of a bankruptcy … [Read more...]

Chapter 11 Bankruptcy Primer, Part 2 of 2

While Chapter 11 bankruptcy is not as frequently employed as Chapters 7 and 13 it is appropriate in some circumstances. This post, along with the first part in the series, will answer many frequently-asked questions about Chapter 11. I also recommend downloading my guide to Chapter 11 here. Q: What questions do I ask a prospective Chapter 11 client to determine whether they should “collapse … [Read more...]

Chapter 11 Bankruptcy Primer, Part 1 of 2

Chapter 11 bankruptcy cases by large corporations make the news more frequently than smaller companies using Chapter 11, leaving some business owners and nonprofit organizations like churches wondering whether Chapter 11 is an option for them. Chapter 11 is not as straightforward to explain as Chapter 7 or Chapter 13, so I wrote this white paper on Chapter 11 and designed this FAQ: Q: How … [Read more...]

Chapter 11 Bankruptcy and Religious Institutions

Chapter 11 bankruptcy may offer a long term solution to the problems churches now face in the wake of The Great Recession. While the recession has been painful for millions of individuals and hundreds of thousands businesses, it has also made continued existence a matter of concern for a number of churches and other religious institutions. Unfortunately, the leadership of many religious … [Read more...]

Bankruptcy Attorney: Advising Receivers

In my practice as a bankruptcy lawyer, I also have occasion to work on cases involving receivership and have advised receivers. It is important to note that a receiver must be a neutral third party, with no ties to or interest in the debtor or its business, or its creditors.  The court oversees the  receiver’s actions in accordance with the North Carolina statutes governing receiverships. Case … [Read more...]

Reorganizing a Business with Chapter 11 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...]

Receivership: North Carolina Bankruptcy Equivalent

While most people have some familiarity with the concept of bankruptcy under federal law, many people are unaware of the concept of receivership under North Carolina law. What is receivership? A federal bankruptcy judge oversees the bankruptcy case, with the help of the Bankruptcy Administrator. In a receivership, the North Carolina court appoints a receiver who is an officer of the court and … [Read more...]