Bankruptcy/Alternatives to Bankruptcy

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. Filing for bankruptcy may not always be your best option. When layoffs, medical emergencies, or divorces occur and your financial situation looks bleak, let our team show you options or work with creditors on your behalf to ease the stress. Calling a bankruptcy lawyer doesn’t have to be difficult; we make sure you understand your options before a decision is made about declaring bankruptcy.

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.

Elder Law

As the size of the senior population grows, the need for outstanding legal representation in the areas of Medicaid/ Medicare eligibility and appeals, power of attorney, health proxies, Social Security law, long-term care and asset preservation planning grows as well. Our staff will work with you to preserve family assets and ensure quality of life protections. We will also fight for the rights of the elderly in nursing home settings, from regulation enforcement to elder abuse cases.

Estate Planning, Wills, Trusts, and Probate

Do you have an updated will? Oliver & Cheek, PLLC will help you create or update this essential estate planning tool to ensure the family you leave behind is adequately cared for. Our staff can also aid in the creation of trusts to hold assets for beneficiaries or represent your interests during probate proceedings if they should arise.

Negotiation and Drafting

A contract is simply an agreement by two parties in which one offers to do—or refrain from doing—something in exchange for a form of compensation. Our attorneys can partner with you to create, modify, and review a well-drafted contract to protect your interests in all types of transactions. An expertly-written contract will keep you out of court and withstand any possible future legal challenges.

Tax Planning and Controversies

The attorneys at Oliver & Cheek, PLLC possess outstanding advocacy skills and a wealth of knowledge and experience in all areas of state and federal tax law. If you’re planning for future needs, facing a tax challenge, or buying or selling real estate, we will partner with you to navigate and resolve even the most strenuous tax issues.