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Bankruptcy

Restructuring with clarity, dignity, and strategy.

Bankruptcy

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. Filing isn't always the best option — when layoffs, medical emergencies, or divorces leave a financial picture looking bleak, our team will show you the alternatives or work directly with creditors on your behalf. Calling a bankruptcy lawyer doesn't have to be difficult; we make sure you understand every option before deciding whether to file.

Includes

  • —Chapter 7 — Liquidation
  • —Chapter 11 — Reorganization
  • —Chapter 12 — Family Farmers & Fishermen
  • —Chapter 13 — Wage-Earner Plans

Chapter 7 Bankruptcy

Liquidation under Chapter 7 is a common form of bankruptcy, available to those who cannot make regular monthly payments toward their debts. Businesses choosing to terminate their enterprises may also file Chapter 7. The principal advantage is that the debtor comes out without any future obligations on his or her discharged debts. However, this type of bankruptcy does not wipe out most mortgages or liens — if a debtor wants to keep an item such as a house or car that secures a loan, those payments must continue.

Chapter 11 Bankruptcy

Chapter 11 is used by businesses to reorganize debts and continue operations. It can also be used for individuals whose debts exceed the limits of Chapter 13. A Chapter 11 plan is submitted to the court detailing the proposed treatment of secured and unsecured claims, and a judge then approves or confirms the plan. The plan — detailing which creditors are paid, how much, and over what period — is then implemented. Plans for small businesses typically last three to five years.

Chapter 12 Bankruptcy

Chapter 12 is used by farmers or commercial fishermen to reorganize debts and continue operating their farms or fishing operations. Its advantage is that the reorganization plan allows payments to be made seasonally, when the farmer or fisherman earns income. The five-year restructuring limitation of Chapter 13 does not apply in Chapter 11 or Chapter 12 cases. Corporations, partnerships, LLCs, and individuals are all eligible for relief under Chapter 12 as family farmers or family fishermen. Debt limits exist, but they are significantly higher than the limits under Chapter 13.

Chapter 13 Bankruptcy

This is a reorganization bankruptcy that allows a person to repay some or all debts. The amount paid to creditors is based on what you want to keep, what you earn, and how much non-exempt property you have. Those who choose this option are usually behind on their house and car payments but want to catch up to keep the property. This option does not necessarily mean all creditors will be paid in full — it is also a way to repay taxes to the IRS or the North Carolina Department of Revenue, as there are no penalties when paid through a Chapter 13 plan.

Have a matter involving bankruptcy? Let's talk.

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