Raleigh Breach of Contract Attorney

If you are being sued for breach of contract, consider consulting with a bankruptcy attorney. A breach of contract lawsuit can be complicated and stressful, so understanding your options is crucial. Filing for bankruptcy might be one of those options.

A Raleigh business bankruptcy attorney can help you understand your rights, guide you through the legal system, and determine if bankruptcy may be an option for your situation. Call Bradford Law Offices at (919) 758-8879 for a confidential consultation with an attorney about the basics of breach of contract and how a bankruptcy attorney can help.

What Is a Breach of Contract?

A breach of contract is a violation of the terms of an agreement between two parties, typically referred to as a “breaching party” and a “non-breaching party.” This can occur when one of the parties fails to fulfill their obligations under the agreement, either by failing to provide payment, goods or services, providing inferior goods or services, or failing to meet deadlines. A breach of contract can also occur when one of the parties deliberately breaches the agreement, for example, by disclosing confidential information.

When a breach of contract occurs, both parties may suffer significant financial losses, depending on the severity of the breach. It is essential for both parties to understand the legal implications of a breach of contract and to be aware of the options available for resolving the dispute.

Will Filing for Bankruptcy Help Me if I’ve Been Sued?

Many small businesses don’t have cash set aside to settle civil lawsuits. In some cases, filing for bankruptcy can help businesses to protect themselves and hold off litigation while they get their finances in line.

Filing for bankruptcy may stop creditor lawsuits and any collection efforts against you. When you file for bankruptcy, an automatic stay goes into effect that stops creditors from contacting you or taking legal action against you. This provides time and protection while you work with your lawyer to determine the best course of action. The other party may still attempt to pursue their claim against you after the bankruptcy has been completed. However, the automatic stay stops them from taking legal action in the meantime.

In order to determine whether or not filing for bankruptcy is the best option for you and your business, you should consult with an experienced business bankruptcy attorney. They can review your case and advise you on the best course of action.

What Are the Different Types of Contract Breaches?

When it comes to contract breaches, several different types can occur. Some common types of breaches include:

  • Material breach: A material breach of contract is the most serious type and is usually the result of one party refusing to honor the agreement entirely. For example, if someone agrees to pay for goods or services and fails to do so, they may be liable for a material breach.
  • Minor breach: A minor breach occurs when one party fails to meet one or more obligations under the contract but not all of them. The contract may still be enforced, but the party responsible for the breach may be liable for damages.
  • Anticipatory or constructive breach: An anticipatory breach of contract is when one party indicates that they are unable or unwilling to fulfill their contractual obligations before the time of performance. This can happen if one party declares that they are not going to meet their obligations or fail to take action in anticipation of their commitments.
  • Implied breach: An implied breach occurs when one party fails to meet a duty that was implied by their actions but not explicitly stated in the contract. This type of breach usually occurs when one party fails to act in accordance with what was expected by the other party based on their past behavior.

Types of Bankruptcies Available for Breach of Contract Lawsuits

When it comes to bankruptcy proceedings and breach of contract lawsuits, there are three main types of bankruptcies available: Chapter 7, 11, and 13. All of these can provide relief from debt obligations, but they each have different requirements.

  • Chapter 7: This type of bankruptcy is known as a “liquidation” bankruptcy and is the most common type. It eliminates most unsecured debts (such as credit card debt and medical bills) and allows the debtor to keep certain assets, such as a home or vehicle. This type of bankruptcy is mostly used by businesses organized as sole proprietorships or by those that intend to close their doors.
  • Chapter 11: This type of bankruptcy is often referred to as a “reorganization” bankruptcy and is primarily used by businesses. It allows the debtor to keep certain assets in order to continue operations and restructures the payment of debts over time.
  • Chapter 13: This type of bankruptcy is also known as a “wage earner’s plan” and is best for small businesses with few creditors. It’s a less costly and simplified reorganization. It restructures the payment of debts over a period of three to five years and allows the debtor to keep certain assets.

Speak With a Raleigh Business Bankruptcy Attorney

If you are dealing with a breach of contract, it may be in your best interest to speak with an experienced Raleigh business bankruptcy attorney who can advise you about your legal rights and options. At Bradford Law Offices, our experienced business bankruptcy attorney understands the ins and outs of contract law, and we have the knowledge and resources to help you make the best decision for your business. We know how stressful this time can be, and we will work to ensure that your rights are respected and that any necessary legal action is taken.

If your business is facing a breach of contract lawsuit, our knowledgeable Raleigh bankruptcy attorney can help you find the best possible solution for your situation. Call Bradford Law Offices at (919) 758-8879 today to schedule an initial confidential consultation and learn more about your options after being sued for breach of contract.

 

Written By: Danny Bradford Last Updated: January 24, 2023