Practice Areas and Legal Definitions

Every year, more than 1,000,000 Americans file for protection under Federal bankruptcy laws. Although some bankruptcy claimants are deemed as credit abusers and/or considered financially irresponsible, many hardworking individuals and businesses can succumb to financial difficulty, and face irreparable economic crisis. Bankruptcy is designed as a legal option to help resolve such a crisis, and act as a financial life preserver for those drowning in debt. To discuss your bankruptcy options, or other areas of recourse that might be available to you, contact a qualified bankruptcy attorney who can advise you of your legal rights as stated under Bankruptcy Law and federal Bankruptcy courts.

Bankruptcy Laws:
Bankruptcy is a federal court process designed to help individuals and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as liquidation or reorganization. Under a liquidation bankruptcy (Chapter 7), a debtor files to eliminate debt through the bankruptcy court. Under a reorganization bankruptcy (Chapter 13), a debtor files a plan with the bankruptcy court proposing how to repay creditors.

In 2005, the requirements under which a debtor could file Chapter 7 bankruptcy changed with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act.  Debtors are now required to seek budget and credit counseling within six months of filing, financial “testing” is required to determine the debtor’s capacity for debt repayment, Chapter 7 cannot be filed if the household income is greater than the median household income as deemed by the state, and state exemptions cannot be applied unless the debtor has resided at current residence for over two years.

Due to the imposed requirements for Chapter 7 bankruptcy as set forth by the new laws, debtors who were eligible to file under Chapter 7 may now have to file under Chapter 13 bankruptcy instead, in which individuals and creditors agree to a court-imposed plan that requires some or all debts be repaid over five years, with an appointed trustee assigned to monitor the repayment process. Bankruptcy filings will continue to be recorded on an individual’s credit report for seven years in the case of Chapter 13, and up to ten years for Chapter 7.

Chapter 7:
Chapter 7 cases are commonly referred to as straight bankruptcy or liquidation cases, and may be filed by an individual, corporation, or a partnership. A Chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in Chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under Chapter 7 may result in the loss of property.

Chapter 13:
A Chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Chapter 13 permits individuals to keep their property by repaying creditors out of their future income.  It is not available to corporations or partnerships. After completion of payments under the plan, Chapter 13 debtors receive a discharge of most debts.

Chapter 11:
Chapter 11 is typically used for business bankruptcies and restructuring. It is not commonly used by individual consumers since it is far more complex and expensive to pursue. It allows businesses to reorganize themselves, giving them an opportunity to restructure debt and get out from under certain burdensome leases and contracts. Typically a business is allowed to continue to operate while it is in Chapter 11, although it does so under the supervision of the Bankruptcy Court and its appointees.

Chapter 12:
Chapter 12 includes special provisions to assist family farmers and family fisherman.

Foreclosure:
Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, it is typically said that "the lender has foreclosed its mortgage or lien".

A Foreclosure by Sale ends in the posting of a sign advertising the auction of your home on the sale date. The only ways to stop a foreclosure are full payment of the arrearage, or the filing of a Chapter 13 bankruptcy. Full Payment: If you are able to obtain and tender the full amount of your arrearage, including fees and costs, you can stop the foreclosure of a standard residential mortgage. Most people lack the money to make full payment. This process stops the foreclosure and allows you to repay your arrearage over a three-to-five year period. The arrearage is paid through a court-appointed official, while you resume your regular monthly payments to the bank in order to keep your home. A Chapter 13 can be filed at any time prior to the law day or sale date, and it is often the only avenue to save your home.

Debt Consolidation:
Contrary to popular belief, debt consolidation is not a loan. Debt consolidation is a process in which debt is restructured into one low monthly payment. It further enables a consumer to reduce the amount owed and thereby eliminate interest. Very often a consumer can detect warning signs of being in too much debt long before any collection notices are received. If more than two of the following signs apply to you, you are probably in too much debt:

• You have begun charging to your credit card essential expenses like food and daily expenditures
• You are making only the minimum payments on your credit cards each month
• You are near the limit of your credit cards
• You have too many credit cards
• You are unsure how much money you owe creditors

Workouts:
Bankruptcy should be considered a last resort, in most cases. If there is a way to negotiate with your creditors and avoid bankruptcy, we will work with you to accomplish that.

Receiverships:
North Carolina permits a receiver to be appointed to administer struggling companies to aid them in a reorganization or an orderly liquidation.

Dissolutions:
We can assist you in an orderly wind-down of your business, if reorganization is not feasible.

If you or someone you know needs the assistance of an experienced New Bern North Carolina Bankruptcy lawyer, call Oliver & Friesen, PLLC today at 866-307-0089, or complete the contact form provided on this site to arrange for a free consultation.

If you or someone you know needs the assistance of an experienced New Bern North Carolina Bankruptcy lawyer, call Oliver & Friesen, PLLC today at 866-307-0089, or complete the contact form provided on this site to arrange for a free consultation.

ADDRESS OF THE FIRM:
Oliver & Friesen, PLLC
415 Broad Street
New Bern, NC 28563
Phone: 866-307-0089
Hours: M-F, 8:00AM-5:00PM

MEMBERS OF THE FIRM:

Attorney George Mason Oliver

Attorney George Oliver is board certified in Business Law Bankruptcy. He is a Panel Trustee for Chapter 7 Bankruptcy in 10 counties in the Eastern District, and is a Specialist in Business Bankruptcy Law, certified by the NC State Bar and American Board of Certification. He has served on the Section Council for the N.C. State Bar Bankruptcy Section.

• Bar Admissions: North Carolina, 1999; U.S. District Court Western District of North Carolina, 1999; U.S. District Court Eastern District of North Carolina, 2001; U.S. District Court Middle District of North Carolina, 2003; U.S. Court of Appeals 4th Circuit, 1999
• Education: University of North Carolina School of Law, Chapel Hill, North Carolina, 1999, earned J.D. and Chosen for Law Review: University of North Carolina Law Review, 1997 – 1998; University of North Carolina, Chapel Hill, North Carolina, 1996, earned B.A. in Communications Studies, Honors: Phi Beta Kappa and Order of the Golden Fleece.
• Honors and Awards: Council Member, NC Bankruptcy Section Council, 2004 – 2007; Certified as a Specialist in Business Bankruptcy Law by the NC State Bar and American Board of Certification; Selected for inclusion in North Carolina Super Lawyers 2009.
• Professional Memberships & Achievements: North Carolina State Bar, Member; North Carolina Academy of Trial Lawyers (NCATL), 1999 – Present, Member; American Bankruptcy Institute (ABI), 2002 – Present, Member; Eastern Inn of Court, Member; Craven County Bar Association, Member and Former President.

Attorney Jonathan Eric Friesen

• Bar Admissions: North Carolina, 2003; Nebraska, 2005; U.S. District Court Eastern District of North Carolina, 2003
• Education: University of Nebraska College of Law, Lincoln, Nebraska, 2003, J.D.; University of Nebraska, Lincoln, Nebraska, 1993, B.A. in History.
• Professional Memberships & Achievements: North Carolina State Bar, Member; Nebraska State Bar, Member; Craven County Bar Association, Member; North Carolina State Bar, Real Estate Section; Board Member and Vice President, New Bern Preservation Foundation, Inc., 2005-Present; Board Member and President, Carolina Chamber Music Festival, Inc. 2005-Present; Past Board Member, Coastal Carolina Chapter of the American Red Cross, 2004-2006.