North Carolina Chapter 11 Bankruptcy Attorneys

Chapter 11 Bankruptcy Attorneys in North Carolina

Chapter 11 bankruptcy is designed to provide relief for businesses, single-asset realty entities, nonprofit organizations, and high-debt individuals. For more than 20 years, the board-certified Chapter 11 bankruptcy attorneys at the Sasser Law Firm have been helping businesses get protection from creditors and develop reorganization plans that open the door to future success.

When companies file for Chapter 11 bankruptcy, they are provided with:

Temporary relief from creditors pursuing foreclosures, levies, lawsuits, and evictions
An option for emergency action if protections are needed immediately
Opportunities to propose alternative treatments for paying existing debt, such as adjusting interest rates, extending terms of payment, and reducing principal balances
At least five years to pay off the tax debt
Control over the sale of business assets
An opportunity to emerge with a manageable financial plan for moving forward

Contact us today to set up a free consultation with our North Carolina bankruptcy lawyers. Our law firm offers competitive, flat-fee arrangements, and we accept time-sensitive cases. Our dedicated North Carolina bankruptcy attorneys have helped more than 8,500 businesses and individuals, including restaurants, churches, real estate developers, and other small businesses.

Steps for Filing for Chapter 11 Bankruptcy

Chapter 11 bankruptcy is a complex process that requires time and commitment. Our NC bankruptcy attorneys will explain how chapter 11 works, so you are prepared every step of the way. In general:

A Chapter 11 case is filed, and the debtor is granted immediate protection, known as an automatic stay. The debtor remains in control of its finances and daily operations. Any activity outside the ordinary course of business must receive court approval.
Assets, liabilities, income, expenses, and a description of certain financial events in the debtor’s recent history are all disclosed in detail.
Pre-bankruptcy bank accounts are closed, and new, debtor-in-possession, accounts are opened.
The debtor and the attorney meet with personnel from the Bankruptcy Administrator’s office.
Operating reports and bank statements are prepared and filed with the court each month while the bankruptcy case is pending (typically, 5 to 12 months).
A Plan of Reorganization is designed and filed with the court.
Creditors then vote to either accept or reject a particular plan. Under certain circumstances, the Bankruptcy Court may confirm a plan even over the objections of creditors.
If confirmed, this Plan of Reorganization becomes a new binding contract between the debtor and its creditors.

Although Chapter 11 has many benefits, it is not the best option for every business.

You should discuss your specific financial situation with our seasoned chapter 11 bankruptcy attorney to weigh all your options. We can discuss whether another type of bankruptcy might make more sense, or whether there are alternatives to bankruptcy you could pursue. Contact our North Carolina law firm today for a free consultation.

What to Consider When Evaluating Whether to File Chapter 11

Filing for bankruptcy is often a last resort, and our experienced Chapter 11 bankruptcy lawyers will be honest with you if we believe there are better options for your company.

Some of the questions we ask when companies are considering filing for Chapter 11 include:

Do you have an exit strategy? For example, do you have a plan for reorganization, liquidating assets, or arranging for the sale of assets? You should consider that reorganization plans may include deleveraging the business or cutting unprofitable ventures.
Can you afford Chapter 11? Professional fees and court fees can be quite significant. In addition to a filing fee and quarterly court fees, attorney fees (paid either before or after filing) typically range from $10,000 to $25,000.
Can your business survive Chapter 11? If your company is struggling financially, you may already be losing employees, customers, and vendors. Going through Chapter 11 will add another layer of stress for management.
Does your company have enough capital or access to capital? This includes capital through operations, sale of assets, debtor-in-possession (DIP) financing, or use of cash collateral.
Do you know how long chapter 11 takes? It depends on the company, some companies have more complications than others, for some, the chapter 11 process/timeline can take months, for other years.
Will your company withstand scrutiny and/or court oversight? Because Chapter 11 proceedings are in the public eye, dealings such as preferential payments or fraudulent conveyances may come back to haunt insiders, officers, or directors. In addition, once Chapter 11 is filed, the Bankruptcy Court must approve executive compensation.
Would it be better to close the business and create a new one? This is frequently an option for personal service businesses or those with low capitalization requirements.

If you are not sure what your next move should be, talk to the knowledgeable Chapter 11 bankruptcy lawyers at the Sasser Law Firm today. We do not charge any fees to evaluate your case, and you will at least leave our office with an idea of your options for moving forward.

Chapter 11 Bankruptcy for Small Businesses in North Carolina

Filing for Chapter 11 is a big undertaking for any business, but it can be more intimidating for small businesses. Fortunately, there are provisions in place for “small business debtors” to streamline the process and make it more affordable.

A small business case is one in which:

An individual or entity is engaged in commercial or business activities and owes $2,566,050 or less in non-contingent liquidated secured and unsecured debts.
The U.S. trustee has not appointed a creditors’ committee, or the court has decided the creditors’ committee is insufficient to provide oversight.

Small businesses filing for Chapter 11 should know:

They face some additional requirements for filing their bankruptcy petition. This includes providing the most recent federal tax returns, prepared balance sheets, statements of operations, and cash flow statements.
The U.S. trustee will provide additional oversight. This includes meeting with the small business debtor in an “initial interview” and monitoring the debtor’s activities during the case.
Small businesses have a deadline for filing a reorganization plan. Unlike other Chapter 11 proceedings, where there is generally no deadline for filing a plan, small business debtors have 300 days to propose a plan. (An extension can be granted under certain circumstances.)
They have more time to propose a plan before creditors jump in. Small businesses have an exclusivity period of 180 days to file a plan before creditors can file competing plans. In typical Chapter 11 cases, debtors have that exclusive right for 120 days.
Small businesses do not have to provide a disclosure statement. This is a time-consuming and expensive document to prepare, so skipping this step can expedite the process and make Chapter 11 more affordable for small businesses.

Talk to an Experienced Chapter 11 Bankruptcy Attorney in Cary, NC Today

Whether your business is on the verge of a financial crisis or you just want to be prepared by learning about your options, our board-certified bankruptcy attorneys can give you a straightforward evaluation at no cost and with no obligation. Our law firm prefers to arm you with information rather than pressure you into making a decision. And we will not hesitate to steer you toward a bankruptcy alternative if we feel that is what’s best.

In addition to Chapter 11 cases, our firm also helps businesses file for Chapter 7 bankruptcy, and we work with sole proprietors to develop repayment plans through Chapter 13 bankruptcy.

Schedule a free consultation with our talented business bankruptcy attorneys today to learn about your options. Our law firm assists small businesses and larger companies throughout North Carolina, including in Wake, Harnett, Johnston, Durham, Orange, Granville, Vance, Franklin, Warren, Nash, Lee, Chatham, and Moore counties. Contact us today to get started.