Law Offices of John T. Orcutt Bankruptcy Blog Feed

One-Seven North Carolina Bankruptcies Linked to Rent-A-Bank Loans

S. Patterson — Wed, 14 Oct 2026 15:14:36 +0000

Rent-a-bank lending is a high-cost loan arrangement in which a fintech company partners with an out-of-state bank to make loans while avoiding North Carolina’s interest-rate limits. A recent Center for Responsible Lending study found that these lenders appeared as creditors in 1,055 of 7,274 North Carolina personal bankruptcies filed from 2018 through 2023 -14.5%, or about one in seven cases.

How Can Bankruptcy Offer a Fresh Start

Law Office Blogger — Mon, 05 Oct 2026 18:12:05 +0000

Filing for bankruptcy can offer a fresh start by giving people a legal way to address debts they can no longer realistically repay. It can stop many collection calls, lawsuits, wage garnishments, and other creditor actions through a court protection called the automatic stay. Depending on the type of bankruptcy and the person’s circumstances, some debts may be eliminated or reorganized into a more manageable payment plan. Although bankruptcy is a serious decision with lasting financial effects, it can create room to rebuild instead of remaining trapped by overwhelming debt.

North Carolina Wendy’s Franchisee File for Bankruptcy Protection

Law Office Blogger — Wed, 30 Sep 2026 16:08:38 +0000

Meritage Hospitality Group, one of Wendy’s largest U.S. franchisees, filed for Chapter 11 bankruptcy after a combination of falling sales, sharply higher food costs, heavy debt pressure, and a dispute with Wendy’s made its finances unsustainable. The Grand Rapids-based operator runs 314 Wendy’s restaurants across 15 states, including North Carolina, and says it intends to keep restaurants open and continue paying roughly 9,000 employees while restructuring.

Congratulations to Attorney Ryan Srnik

Law Office Blogger — Wed, 23 Sep 2026 19:16:00 +0000

The Law Offices of John T. Orcutt proudly congratulates Ryan Srnik on his formal appointment to the U.S. Bankruptcy Court for the Eastern District of North Carolina’s Local Rules Committee.

Fried chicken chain files Chapter 11 bankruptcy

Law Office Blogger — Mon, 21 Sep 2026 17:08:22 +0000

Yardbird Group filed for Chapter 11 because its restaurant business has accumulated more debt and financial obligations than it can comfortably manage under its normal operations. In simple terms, the company is using the bankruptcy court to gain breathing room, keep the business running while it reorganizes, and look for a buyer or new financing rather than simply shutting down immediately. The filing covers Yardbird Group and 10 related entities, and it was made voluntarily in Delaware on September 21, 2026.

Durham Based Energy Company Files for ch. 11 Bankruptcy

Law Office Blogger — Tue, 08 Sep 2026 17:32:14 +0000

American Efficient, a Durham-based energy company, filed for Chapter 11 bankruptcy because it faces a government order totaling more than $1.1 billion—far more than the company says it can afford to pay. The Federal Energy Regulatory Commission (FERC) concluded that the company improperly collected money in electricity markets by claiming credit for energy savings it did not truly create or control. American Efficient denies that it did anything wrong and is continuing to fight the government’s findings in court.

Update on Historical Raleigh College, St. Augustine University Bankruptcy Proceedings

Law Office Blogger — Wed, 02 Sep 2026 17:19:05 +0000

Saint Augustine’s University in Raleigh is in Chapter 11 bankruptcy, which is a court-supervised process meant to give an organization time to reorganize its finances rather than immediately shut down. In simple terms, the school has far more debt and financial obligations than it can currently handle, so it is working with a bankruptcy judge, creditors, and advisers to decide whether it can become financially stable. The university has not formally closed, but its ability to operate as a school is extremely limited while the case continues.

Debt Settlement Trap

Law Office Blogger — Tue, 25 Aug 2026 15:17:34 +0000

Debt settlement companies often promise that they can reduce what you owe for less than the full balance. They may tell you to stop paying your creditors and instead send money to the settlement company or into a special account each month. While this can sound like a simple path out of debt, it can leave people worse off if settlements do not happen quickly or at all. The consumer may lose money to fees, face growing balances, and deal with more aggressive collection activity.

What's the difference between Ch. 13 and Ch. 7 Bankruptcy?

Law Office Blogger — Tue, 18 Aug 2026 20:04:06 +0000

Chapter 7 and Chapter 13 are two common types of personal bankruptcy, but they work in very different ways. Chapter 7 is generally a faster process that can erase many unsecured debts, such as credit-card balances and medical bills, for people with limited income and few assets they could lose. Chapter 13 is a court approved repayment plan that lets a person keep more property while paying back some or all debts over time. The right option depends on household income, assets, debt type, and the person’s financial goals.

How is Stagflation Contributing to a Rise in Bankruptcy Filings in North Carolina

Law Office Blogger — Tue, 11 Aug 2026 23:48:37 +0000

Stagflation can contribute to more bankruptcy filings in North Carolina because it combines rising prices with slower economic growth and increased unemployment. In this environment, the cost of essentials rises while jobs, work hours, wages, and small-business revenue may weaken. Households and businesses that already carry substantial debt can find that their monthly obligations no longer fit within their available income.