Raleigh, NC Chapter 11 Bankruptcy Lawyer

Raleigh, NC Chapter 11 Attorneys

If your business is struggling to get out from under crushing debt, you may want to consider a Chapter 11 bankruptcy reorganization. Filing for this type of bankruptcy allows a business to get a break from creditors while it develops a plan to reorganize and emerge positioned for success.

At the Sasser Law Firm, our Raleigh bankruptcy attorneys are board-certified and have more than 20 years of experience helping businesses get a fresh start. We have helped countless businesses work through the Chapter 11 process, which can provide:

Temporary relief from the pressure of creditors pursuing foreclosures, evictions, levies, and lawsuits
Emergency protection if your business needs immediate help
Control over the sale of any assets you may decide to liquidate to pay off debt

Options to restructure existing business debt, such as by reducing interest rates, lengthening payment terms, and decreasing principal balances
At least five years to pay off your business’s tax debt
A chance to emerge with an achievable plan for your business’s financial health

Contact our Raleigh Chapter 11 lawyers today to set up a free consultation, where we will discuss options for saving your business. Our North Carolina bankruptcy law firm has helped more than 8,500 businesses and individuals get the relief they need. We have worked with restaurants, real estate developers, churches, and all types of small businesses.

Need Help Deciding Whether to File Chapter 11?

Businesses, single-asset realty entities, nonprofit organizations, and high-debt individuals may seek protections under Chapter 11 bankruptcy. However, deciding whether to file for bankruptcy can be tough. Our knowledgeable Chapter 11 attorneys will conduct a thorough review of your case and go over all your options with you. We will be honest about whether we believe Chapter 11 is the best option for you.

When considering Chapter 11, some of the questions your business may want to think through include:

Do we have an exit strategy? Have you thought about how you would reorganize, whether you need to liquidate assets, and how you would sell those assets? Have you thought about what portions of your business are not profitable and could be cut?
Can we survive a Chapter 11? Although a Chapter 11 provides protection from creditors, it does not protect you from losing customers, employees, and vendors. Management needs to be prepared for the stresses of operating a business while going through the bankruptcy process.
Do we have enough capital (or access to capital)? You will need to assess what capital you have (or can obtain) through ongoing operations, liquidation of assets, debtor-in-possession (DIP) financing, or cash collateral.
Are we prepared for public scrutiny and/or court oversight? Officers, directors, and other insiders may find themselves haunted by dealings such as preferential payments or fraudulent conveyances. In addition, once a Chapter 11 petition is filed, the Bankruptcy Court is responsible for approving executive compensation.
Can we afford Chapter 11? The cost of a Chapter 11 bankruptcy can be significant. You will need to pay a filing fee and quarterly court fees, as well as attorney fees (paid before or after filing) that can range from $10,000 to $25,000. Our Raleigh bankruptcy law firm does offer competitive, flat-fee arrangements for Chapter 11 cases.
Would we be better off just closing and starting a new business? If you have a personal service business or require little capital, this may be a better option.

Filing for business bankruptcy is a big decision, and we want you to feel confident that you are making the right move. Our Raleigh Chapter 11 lawyers will be straightforward with you about what we think is best, including identifying any bankruptcy alternatives.

Schedule a free consultation today to discuss your options.

Understanding the Chapter 11 Bankruptcy Process in Raleigh, NC

Chapter 11 bankruptcy is a complicated process that takes both time and commitment. Our Raleigh business bankruptcy attorneys will prepare you for what to expect throughout the process, so you can make informed decisions as you go. Although every Chapter 11 case we handle is unique, you can typically expect the process to include:

Once the Chapter 11 bankruptcy petition is filed, the debtor is granted protection from creditors immediately. This is known as an automatic stay.
The debtor stays in control of finances and day-to-day operations. However, any activity that is not part of the regular course of business requires court approval.
The debtor must disclose in detail all assets, liabilities, income, expenses, and a description of recent financial events.
Pre-bankruptcy bank accounts are shut down. New accounts, known as debtor-in-possession accounts, are opened.
The debtor and its bankruptcy attorney meet with representatives from the Bankruptcy Administrator’s office.
The debtor must prepare and file operating reports and bank statements with the court every month while the bankruptcy case is pending. (This is typically 5 to 12 months).
The debtor must prepare and file a Plan of Reorganization with the Bankruptcy Court.
The creditors vote on whether to accept or reject a Chapter 11 bankruptcy reorganization plan. Under some circumstances, the court may confirm a plan despite objections from creditors.
If confirmed, the Plan of Reorganization is the new binding contract between the debtor and creditors.

Although many businesses benefit from Chapter 11 reorganization, you should always consider all your options before making a decision to file for bankruptcy. Our seasoned bankruptcy lawyers are available to discuss the specifics of your case in a free consultation today. Our goal is not to pressure you into filing for bankruptcy but to help you identify the right path for you moving forward.

Chapter 11 for Small Businesses in Raleigh, NC

Although filing for Chapter 11 is never simple, “small business debtors” are afforded special provisions to help streamline the process and make it more affordable. Bankruptcy law defines “small business cases” as those in which:

An individual or entity that is engaged in commercial or business activities 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 determined the creditors’ committee is not sufficient to provide oversight.

If you are a small business considering filing for Chapter 11, you should know:

Small businesses are subject to some additional filing requirements with their bankruptcy petition. They must provide their most recent federal tax returns, balance sheets, operations statements, and cash flow statements.
The U.S. trustee provides increased oversight. The trustee will meet with the small business debtor as part of an “initial interview.” The trustee will also monitor the debtor’s activities throughout the bankruptcy case.
Small businesses have extra time to propose a reorganization plan before creditors file competing plans. Small businesses have 180 days to file a plan before creditors can jump in. In traditional Chapter 11 cases, debtors have only 120 days.
Small businesses must meet a deadline for filing their Plan for Reorganization. In traditional Chapter 11 cases, there is typically no deadline for filing a reorganization plan. However, small businesses must file a plan within 300 days (unless an extension is granted).
Small businesses don’t have to file a disclosure statement. Because disclosure statements are time-consuming and costly to prepare, skipping this step saves small businesses both time and money in Chapter 11 cases.

Talk to a Board-Certified Chapter 11 Bankruptcy Attorney in Raleigh Today

At the Sasser Law Firm, our attorneys work with a wide range of entities seeking bankruptcy protection. Our Raleigh Chapter 11 attorneys handle both emergency filings as well as longer-term planning for the road ahead. We pride ourselves on providing solid legal advice in a low-pressure environment, so you feel comfortable making a decision that’s right for you.

In addition to handling Chapter 11 bankruptcy cases, our law office helps businesses that prefer to simply liquidate with Chapter 7 bankruptcy. Our attorneys also help sole proprietors who need to propose repayment plans through Chapter 13 bankruptcy.

Set up a free consultation with our business bankruptcy lawyers today to talk about your options. Our law office works with both small businesses and larger companies across Raleigh and throughout North Carolina, including in Wake, Harnett, Johnston, Durham, Orange, Granville, Vance, Franklin, Warren, Nash, Lee, Chatham, and Moore counties.

Facing Chapter 11 in Raleigh?