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...]
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 … [Read more...]
Each state has different laws on what is recognized as exempt property, that is, property that is out of the reach of creditors (including bankruptcy trustees). Further, there are federal exemptions. I wrote about this extensively and you may find it helpful reading. Here's the kind of question that occasionally comes up when we counsel a married couple about bankruptcy. Q: The exempt … [Read more...]
Look, I know why people have joined or are considering joining so-called "debt resolution" programs; we humans have an innate desire to “do the right thing” and honor our debts. But with so many people turning to me to pick up the pieces of a debt resolution program gone bad, it's time to take a stand against them. The ugly downside of debt arbitration programs As I work with new clients in … [Read more...]
Some of the best advice a bankruptcy attorney can give is about timing: when to file. In many circumstances, I advise clients to wait until a date certain to file, and to maintain the status quo until then, which often means dealing with a deluge of creditor and bill collector calls until their cases are filed. Don't allow yourself to be railroaded by creditor calls Many clients want and … [Read more...]
There are financial and emotional reasons to seek bankruptcy protection. Let's consider both categories. Financial questions to ask yourself Are you able to make more than a minimal payment on your debts every month? How many times in the last year have you been late or skipped a payment on a debt? What is your total debt relative to your annual income? The higher your debt to annual … [Read more...]
You may know that North Carolina law allows judgment creditors to collect judgments owed to them in certain ways and under certain circumstances, and that these laws vary from state to state. You may also know that North Carolina does not allow wage garnishment for consumer debts (credit cards, auto loans, mortgages, and the like) or for many private business debts (money owed to vendors, banks, … [Read more...]
Often, new client calls to my office are prompted by the unpleasant discovery that a tax authority wiped out their bank accounts to pay back taxes. Callers want to know if there is anything they can do to get their money back (generally, it’s gone for good) and if bankruptcy is an option for their larger financial troubles. Five options for taxpayers who are unable to pay their taxes in full … [Read more...]
Most of my bankruptcy clients have credit card and medical debts they wish to discharge. It is rare that a personal bankruptcy filing does not include both. To understand the relationship between the two debts, Dēmos, a nonpartisan public policy research and advocacy organization, conducted the 2012 National Survey on Credit Card Debt of Low- and Middle-Income Households this February and … [Read more...]
Filing a Chapter 13 bankruptcy case isn’t as straightforward as a Chapter 7 case. I usually find that my Charlotte area clients who need Chapter 13 bankruptcy protection have issues with businesses and partnerships that need to be unwound or otherwise dealt with; they often have unpaid tax liabilities with the state and IRS; and they may have a number of mortgaged properties and other … [Read more...]