Submitted by Jen Jones on Mon, 07/25/2011 - 1:28pm
Local Businessman Files for Chapter 11 Bankruptcy (And You Can Too)
A North Carolina businessman recently filed sought the safe havens of a Chapter 11 bankruptcy after being hit with two civil complaints in the past year, based on a recent story by the Johnston County’s The Herald. According to the paper, “The Dueas filed for bankruptcy protection on April 29 - about two weeks after a Smithfield cardiologist sued Jody Duea. Dr. Frank Wefald, owner of Millenia Cardiovascular, leases office space in Neuse River Commons. According to the doctor's civil complaint, Jody Duea managed Millenia's finances and Wefald's personal accounts as Wefald's office manager from February 2009 to September 2010. Wefald claims Duea misused the doctor's money and racked up more than $60,000 in banking fees by opening and using a secret account with [a local bank].”
In addition, the newspaper added that Mr. Duea was sued by RBC Bank in 2010 for a loan he took on for a failed restaurant venture. The Dueas' bankruptcy petitions lists Wefald, his company Millenia Cardiovascular and Four Oaks Bank as creditors. The news source said the couple also owes back taxes on their Neuse River office and retail complex.
"Facing such a personal onslaught by RBC Bank, I had no recourse but to seek the protections afforded me by the United States Bankruptcy Court," Duea said in the statement.
In reality, many average Americans—in the state of North Carolina and beyond—have been turning to the safe havens of bankruptcy proceedings in record numbers this year. In fact, according to the American Bankruptcy Institute, there were 353,082 bankruptcy filings during the first quarter of 2011 alone. Of those, 458 folks sought financial relief through Chapter 11 petitions.
Specifically, Chapter 11 of the Bankruptcy Code provides for reorganization, in most cases of a corporation or partnership. In the process, a chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11 when their debts are out of control.
Whether you build up office buildings or rebuild human hearts, if your specific industry has been affected by the economic downturn, Chapter 11 can buy you the time you need to reorganize the way you do that business as well as get you back to making better financial decisions. And buying you time to tweak your business model (or, in some cases, your personal budget) is part of what Chapter 11 is all about: diminishing debt while you save your means to profit. Even if your business model is too small for Chapter 11 relief, you may still need the benefits that a Chapter 13 bankruptcy can provide from personally guaranteed debts.
So, are you an active businessperson who is considering a new chapter for your business or organization through the benefits of a bankruptcy filing? Or are you an average American reading about the benefits of bankruptcy and want to learn more about how these types of benefits can actually benefit you?
Well, first and foremost, when you are seeking the broad protections of bankruptcy, it’s best to consult with a qualified attorney before filing. A qualified bankruptcy attorney is important during the bankruptcy process to help you navigate any uncertain waters and work in your best interests throughout the duration of the case, regardless of your status. If you live or work in North Carolina, the bankruptcy attorneys at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to +1-833-627-0115, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.
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