Chapel Hill is home to the University of North Carolina, Ackland Art Museum, and the North Carolina Botanical Garden. It has a population of nearly 60,000, a beautiful historic district, and was voted one of the best towns and small cities in the U.S. In other words, there’s a little bit of something for everyone in Chapel Hill.
In the beautiful Chapel Hill area, we have business owners who wake up each morning overwhelmed with anxiety about debt. It can feel like an insurmountable problem when you are harassed by creditors and preoccupied with the possibility of losing your business.
Thankfully, there are a variety of ways to manage this debt. Bankruptcy is just one option to help you move on to a fresh start. There are several types of bankruptcy, each of which has its own advantages and disadvantages.
At Bradford Law Offices, our Chapel Hill bankruptcy attorneys can walk you through the options you have to deal with your present challenges. We will review the details of your specific situation to help you understand the options that can provide you with relief.
Common Types of Bankruptcy
Bankruptcy is a general term that encompasses six actions that the law allows for businesses to deal with debt. We’ll discuss four of those six types of bankruptcy since the fifth one, Chapter 13, is for individuals rather than businesses, and the sixth one, Chapter 15, deals with debt that occurs in more than one country.
Each type of bankruptcy has a different ultimate goal that addresses assets, debts, creditors, restructuring, and repayment.
Chapter 7: Chapter 7 bankruptcy is intended for individuals, partnerships, or corporations. It is also sometimes called liquidation, since the entity filing for Chapter 7 bankruptcy will have forgiveness of most of its debts and after assets are sold, and the proceeds are used to pay the creditors.
The court appoints a trustee to oversee the sale of the assets and pay off the creditors. Certain unsecured debts may be discharged, or erased, during a Chapter 7 bankruptcy.
Chapter 9: This section of the law allows municipalities to declare bankruptcy, such as a school district, city, or county. The debt is restructured, and a plan is developed to pay off the debt without selling the assets.
Chapter 11: This section of the law is also called reorganization. It can be used for individuals, but more commonly is used for businesses to restructure debt. The entity filing Chapter 11 will draft a plan to repay the debt while retaining its assets. Chapter 11 bankruptcy is more complicated than Chapter 7 and may be more viable for businesses.
Chapter 12: This section of the law is designed for family farmers and family fishermen who have a regular income. It allows them to reorganize their debts in a similar fashion to Chapter 13. However, chapter 12 bankruptcy has greater advantages for farmers who don’t meet the Chapter 13 criteria. The process is more straightforward than Chapter 11 repayment can be spread out over three years, but the court has the discretion to extend that to five years.
Bankruptcy Is a Tool
Bankruptcy has been a crucial tool for individuals, businesses, and the nation over the last two hundred plus years. When consumers and companies can restructure their debt or have debt forgiveness, they’re better able to recover, which in turn improves their community and the nation.
People mistakenly associate bankruptcy with a punishment or a future that may be plagued by damaged credit. Yet, as our clients have discovered, bankruptcy is a tool to help them repair their finances and create a better future.
The legal team at Bradford Law Offices is committed to helping businesses in Chapel Hill, North Carolina, understand the benefits of bankruptcy. Our clients are armed with the resources and information they need to take meaningful steps toward a better financial future.
We are confident that we have the tools you need to regain control of your company’s finances. Call our offices today for an initial confidential consultation where we will review your situation and answer your questions.
Bankruptcy laws offer businesses the tools they need to deal with outstanding debt. For millions, this has become a fact of life. Filing for business bankruptcy can be a confusing and overwhelming process.
Many people have questions and are unsure of where to turn to get accurate and informative answers. If you are confused about how bankruptcy may help your situation or you need more information, don’t hesitate to call Bradford Law Offices at (919) 758-8879. Our experienced team can help you through the process.
Filing bankruptcy can help protect you from creditors who are pursuing legal action and can help you either discharge your debt or restructure payments so they are manageable. According to the Small Business Association, 67.6 percent of all new businesses survive only two years, and 48.9 percent survive only five years.
If your small business is falling into debt, you may want to consider how filing for bankruptcy could save your business and allow you to continue on a path to success. Our experienced Chapel Hill bankruptcy attorney of Bradford Law Offices is ready to help you explore how you can save the business you’ve worked so hard to create. Call us today at (919) 758-8879 for your initial consultation to discuss how bankruptcy may help.
Steps to File Bankruptcy in North Carolina
There are several steps to filing for bankruptcy in North Carolina. When you work with our legal team, we will walk you through those steps and ensure that the correct information is filed with the right paperwork, and on time.
Initially, we will advise you to gather all your financial documents so that we can review your debts and assets. This helps determine which type of bankruptcy is best for your situation. Will evaluate those options with you and come to a decision that best meets your needs.
When a bankruptcy action is filed, depending upon the type of bankruptcy, a trustee may be appointed to handle the administrative tasks and, in some instances, will organize a creditor’s meeting. The representative of the organization filing for bankruptcy must attend this meeting so they can answer questions about their financial situation.
Contact Experienced Chapel Hill Bankruptcy Lawyers
If your business is struggling under a mountain of debt and needs some financial relief, you will benefit from the counsel of our experienced Chapel Hill bankruptcy lawyers. Debt can raise your stress and anxiety level, which in turn has a significantly negative effect on your physical health.
The experienced, compassionate, and skilled team at Bradford Law Offices understand how bankruptcy can be a valuable tool for businesses. Call our office today at (919) 758-8879 for your initial consultation. We’ll discuss your options with you and answer your questions.