Hatch, Little & Bunn, LLP's bankruptcy specialist, Douglas Q, Wickham, has over three decades experience assisting both business and individual clients to resolve debt problems. He and his staff give each matter the personal attention it needs to achieve the best possible result for each of our clients. He assists both debtors and creditors in bankruptcy courts in the Eastern and Middle Districts of North Carolina. He is board certified in both individual and business bankruptcy.

A substantial number of changes to the Bankruptcy Code became effective last October. YOU NEED TO KNOW THAT CHAPTER 7 RELIEF IS STILL AVAILABLE TO THE VAST MAJORITY OF PEOPLE. The exemptions available to North Carolina residents increased as of January 1, 2006. If you are eligible for Chapter 7 relief, you will more likely be able to keep what you now own.

One of the changes to the Bankruptcy Code is that attorneys who assist clients to file bankruptcy must disclose the obvious: “We are a debt relief agency. We help people file for relief under the Bankruptcy Code”. I am placing this on our website in compliance with the law.

Now, more than ever, it is important that you consult with an experienced attorney who will give personal attention to your case. I have over 30 years experience assisting individual and business clients. When I moved to Raleigh in 1987, the North Carolina Bar Association immediately certified me as a bankruptcy specialist for both business and consumer clients. Contact me for a free initial consultation.

For Individuals:

Last year over 1.3 million individuals obtained relief from debt through the bankruptcy courts. We understand that financial difficulties are usually the result of things that happen to you. Loss of a job, divorce, uninsured medical expenses, and business disasters are the chief causes of debt that you cannot resolve.

If you have debt that you simply cannot pay, or if the payments you send no longer cause the amount of debt to go down, you should seriously consider obtaining a fresh start with the help of a bankruptcy discharge. Although bankruptcy is a fact in your credit history for 7 to 10 years, most people who file bankruptcy can obtain normal credit in about 2 years. You no longer have the debt that has been discharged. Bad payment history is no longer recent. If you have been able to live within your income after the bankruptcy filing, you will probably have some savings as well.

There are two Chapters which individuals may use to resolve their debts. The most common and useful is a filing under Chapter 7. Under that Chapter, Debtors keep all property protected by exemptions. Most Chapter 7 personal bankruptcy cases result in the debtor keeping all of his or her property. If there is non-exempt property, the Trustee will turn that property into cash and pay it to creditors. The debtor receives a discharge of debt and moves on with life.

Individuals may sometimes file under Chapter 13 which is more like a personal reorganization. The net household disposable income is paid to a Trustee who, in turn, distributes the money to creditors who file proofs of claim. Chapter 13 cases run from 36 to 60 months, and upon completion of the case remaining unpaid debt is discharged. Chapter 13 is best suited to people whose mix of debts includes an arrearage in the home mortgage. Filing Chapter 13 will stop a foreclosure and will often provide enough protected time in which to bring the mortgage current and deal with all other debts that may be present.

For Business Owners:

Chapter 11 of the bankruptcy code provides a means for incorporated businesses to reorganize their financial affairs while being protected against creditors poised to seize their property or close their doors. When there is a plan to return the business to a profitable state, a chapter 11 filing can protect the business and give it time to execute that plan. Management of the business remains in place, but must operate the business with interests of the creditors in mind. Monthly reports to the court are required and the Bankruptcy Administrator for the district exercises oversight while the case is open.

Oftentimes, the debts of a business can become the debts of its owners as well. There can be personal guarantees, owners may have incurred large personal credit card debts, and there may be unpaid taxes as well. In these situations, only an attorney experienced in both business and personal debt relief can advise the business owners about the full range of their options.

Whether you are a consumer or a business owner, you can obtain a free initial consultation by calling Douglas Q. Wickham today at (919) 856-3940 or contact us via our online form.

Click here for frequently asked questions about Bankruptcy and Loan Workouts.

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