Filing Business Bankruptcy in North Carolina
Advocating the rights of debtors
Debtors can rely on the experience of G. Martin Hunter to represent you in state or federal courts to protect your rights against lenders, creditors, equity holders, and others in cases involving liens, debt discharge, fiduciary duty, and more.
Bankruptcy as a business tool
Under current economic conditions, bankruptcy is increasingly used as an effective tool to achieve business goals. Chapter 11 can provide a distressed business with financial options to help it weather its storm. If and when liquidation seems the only solution, Chapter 7 may sometimes provide the path.
Corporations, limited liability companies (LLCs), partnerships, and individual business owners can file for bankruptcy under the U.S. Bankruptcy Code's Chapter 11 or Chapter 7. G. Martin Hunter can help you formulate the best plan of action to meet your needs and your unique situation.
Filing under Chapter 11-Reorganization
Some benefits of filing Chapter 11 bankruptcy include:
- Continuation of operations
- Level of control over business operations
- Level of control over restructuring plan negotiation
- Asset retention
- Employee retention
Once you file, most collection activities against you temporarily stop through an automatic stay. You can get financing to continue your business's operations during this time. You can also use, sell, or lease your business property.
The focus of Chapter 11 is on reorganization. Within the first 120 days of filing Chapter 11 bankruptcy, you as the debtor propose a plan for your company's reorganization. Your plan may call for paying creditors from your business's future profits, from asset sales, or funds gained through a merger or recapitalization.
The Bankruptcy Administrator, a court official, enters an "operating order," which contains requirements for operating in Chapter 11. The Bankruptcy Administrator also forms a committee of your largest unsecured creditors. G. Martin Hunter has the experience you need for filing Chapter 11 bankruptcy. All three attorneys have experience in representing business debtors in Chapter 11 cases. In addition, Mr. Hunter has served as counsel for committees of unsecured creditors in bankruptcy cases. Your attorney usually negotiates with creditors' lawyers the terms of a reorganization until an agreement is reached. Then a "Disclosure Statement" and "Plan of Reorganization" are filed with the court. The plan is submitted to creditors for a vote, and then the bankruptcy court either approves or rejects your plan.
Counsel for the committee and your own lawyer usually negotiate the terms until they reach an agreement. Then your plan is submitted to the creditors for a vote, and the bankruptcy court either approves or rejects your plan.
When your plan is approved, your path is clear to implement it and be on your way to a better financial future.
Filing under Chapter 7-Straight Bankruptcy
Not all businesses in distress can benefit from reorganization and Chapter 11. In some cases, selling your company assets through a court-appointed trustee to pay your creditors under Chapter 7 is your best path to financial relief.
To begin the process of filing Chapter 7 bankruptcy, you must file a petition, schedules, and a statement of financial affairs with the Bankruptcy Court and provide-
- A list of all your business's creditors, including the amount and type of each of their claims
- The source, amount, and frequency of your company's income
- A list of all your property holdings
- A list of all your monthly expenses
As in Chapter 11, filing your petition invokes an automatic stay, giving both you and your creditors some breathing room. About 20 to 40 days after you file, you meet with your creditors in a § 341 meeting, where you answer any questions posed by your trustee and creditors.
Filings, requirements, deadlines, committees, meetings-all bankruptcy proceedings benefit from the advice you can get from experienced legal counsel. Based in Charlotte, G. Martin Hunter can help you determine which business bankruptcy option is right for your circumstance.
Out-of-court debt relief options-alternatives to Chapter 11
Reorganizing debt through an out-of-court workout or restructuring
An out-of-court workout or restructuring can help your business reorganize its debt more quickly than filing under Chapter 11. We can help you determine whether this alternative is right for you and assist you with a contractual agreement with your creditors that resolves your obligations to them. This course of action can provide many benefits, including the following:
- Cost effectiveness
- A plan for financial stability
- Minimized business operations impact
- Use of cash without a court order
- Maintenance of employee morale
- Protection against exploitative competitive action
- Minimized public scrutiny
At G. Martin Hunter, I guide you through this process that may proceed more quickly than you might think. I draft and help negotiate your workout agreement so you can focus on your business.
Contact G. Martin Hunter today
If your business finds itself in a financial bind, contact the debtor-creditor attorney G. Martin Hunter. I can help your North Carolina company find its way to financial stability through a course of action that is right for you. Call me at 704-377-8764 or contact me online.