Bankruptcy/Alternatives to Bankruptcy
We are a debt relief agency. We help businesses file for bankruptcy under the Bankruptcy Code. Filing for bankruptcy may not always be the best option. The choice you make can greatly affect the ability to retain your business assets and avoid costly fees. Let our team walk you through the options available to you or work with creditors on your behalf to ease the stress.
Chapter 7 Bankruptcy
Liquidation under Chapter 7 is a common form of bankruptcy and is available to those who cannot make regular, monthly payments toward their debts. Businesses choosing to terminate their enterprises may also file Chapter 7. The principle advantage is that the debtor comes out without any future obligations on his discharged debts. However, this type of bankruptcy does not wipe out most mortgages or liens. If a debtor wants to keep an item—perhaps a house or car, which is security for a loan—he must continue these payments. If the debtor wants to discharge that car loan, then he must surrender the car to the creditor holding the lien.
Chapter 11 Bankruptcy
Chapter 11 is used by large businesses to reorganize debts and continue operations. Corporations, partnerships, and LLCs are not allowed to file for relief under Chapter 13, thus Chapter 11 would be the only option for these entities if reorganization is needed. If a company files for relief under Chapter 7 it must end operations upon the filing of the case. In North Carolina the bankruptcy administrator supervises the case. A Chapter 11 plan is submitted to the court detailing the proposed treatment of secured and unsecured claims and a judge then approves or confirms the plan. The plan—which details creditors to be paid, how much they are paid, and how long the plan lasts—is then implemented. Usually plans for small businesses last three to five years.
Chapter 12 Bankruptcy
Chapter 12 is used by farmers or commercial fishermen to reorganize their debts and continue operating their farms or fishing operations. The advantage of Chapter 12 is that the reorganization plan will allow payments to be made seasonally, when the farmer or fisherman earns his money. The limitation of only being able to restructure loans in a five-year period in Chapter 13 cases is not a limitation in Chapter 11 or Chapter 12 cases. A corporation, partnership, or LLC, along with individuals, are eligible for relief under Chapter 12 as family farmers or family fishermen. Debt limits do exist for a debtor filing for relief under Chapter 12, but the limits are significantly higher than debt limits under Chapter 13.
Chapter 13 Bankruptcy
This is a “reorganization” bankruptcy that allows a person to repay some or all debts. The amount paid to creditors is based on what you want to keep, what you earn, and how much non-exempt property you have. Those who choose this option are usually behind on their house and car payments, but desire to catch up on those payments to keep the property. This option does not necessarily mean all creditors will be paid in full—it is a way to repay taxes to the IRS or North Carolina Department of Revenue as there are no penalties when you pay through a Chapter 13 plan.
Business Consulting and Advising
Do you need a partner to provide honest, sound legal and business advice? The attorneys at Oliver & Cheek, PLLC are excellent problem solvers and experts at developing and selling ideas. Our team will work to help you solve problems, recognize emerging problems, and set your company on the path to success.
Business Entities and Transactions
When selling to a third-party buyer or transferring a business to the next generation of family ownership, our team can guide you through the process. From entity selection and formation to disposition, Oliver & Cheek, PLLC can aid in business sales, shareholder agreements, leasing and purchasing real estate, lender financing, and many other transactions. Our experience will help you weigh opportunities and risks to best assess business decisions.
Business Succession Plans
You’ve spent years building and growing your business—don’t leave its future to chance. Creating a succession plan is crucial and ensures you, or your heirs, will be able to cash out at a fair value when the time comes. With no concrete plan in place arguments between heirs of a deceased owner, or between heirs and employees, can sink a business. Let our team work with you to create a plan that meets your needs.
Corporate Structure and Business Planning
Structuring the way in which your business will be run and organized can be a daunting task. Trying to choose between registering as a sole proprietorship, general partnership, corporation, or limited liability company? Let Oliver & Cheek, PLLC guide you in these types of decisions, the creation of job titles and duties, and the mapping of future expansion.
Mergers and Acquisitions
Involvement in a merger or acquisition can take months and having a partner to walk you through the maze of requirements is essential. When needed, the attorneys at Oliver & Cheek, PLLC can offer legal analyses and solutions to advance your goals—all while avoiding unnecessary expense. We realize there’s no “one size fits all” strategy when it comes to mergers and acquisitions and will work with you to obtain the resolution that is most fair.
Negotiation and Drafting
A well-drafted contract is essential to the success of all types of transactions and business dealings. Our attorneys will work with you throughout the process—making sure to draft contracts that protect your interests while also encouraging cooperation among all parties involved. We can work with you to draft, modify, review, and enforce a contract and will be there in the event you face contract disputes or breaches. We focus on accomplishing your contract goals while ensuring the contract can withstand any future legal challenges.
During bankruptcy proceedings a receiver is sometimes appointed to run a company and has the power to take whatever action he sees fit to liquidate the business’ assets. Our staff can represent the receiver or the business owner challenging the receiver prior to, during, or even after the appointment process.
State and Federal Civil Litigation
Is your business faced with partnership/corporate disputes, trademark/copyright violations, unfair competition, contract disputes, or breach of contract? Our team can work in both state and federal court to secure successful settlements in even the most complex disputes via trial, appeals cases, or administrative proceedings.
Tax Planning and Controversies
The experienced team at Oliver & Cheek, PLLC possesses a wealth of tax law knowledge. Our attorneys can help clients avoid controversies and save money in taxes, interest, and penalties by helping plan transactions and structure operations. Contact our office for assistance if you need personal tax assistance or help fighting a business audit or other controversy.