Law Offices of John T. Orcutt Bankruptcy Blog Feed

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.

North Carolina 2nd Largest State inYear-Over-Year Foreclosures

Law Office Blogger — Wed, 05 Aug 2026 21:24:27 +0000

In 2026, the U.S. foreclosure market showed a clear year-over-year rise, with the sharpest increases clustered in a mix of Western, Southern, and Midwestern states. Using ATTOM’s mid-year report on lender repossessions (REOs), the top 10 states with the largest annual increases were Colorado, Florida, Minnesota, Alabama, Texas, California, Arizona, Virginia, North Carolina, and Pennsylvania.

The Department of Education is ending the SAVE Plan.

Law Office Blogger — Tue, 28 Jul 2026 14:19:34 +0000

The latest major U.S. student loan “settlement” is the court-related action around the SAVE repayment plan (The SAVE saving on a Valuable Education) plan

was an income-driven repayment option for federal student loans designed to lower monthly bills. This action effectively pushed the Education Department to stop using SAVE for new borrowers and move existing borrowers into other repayment options. In plain English, it is not a one-time cash settlement for borrowers; it is a legal and policy change that affects how federal student loans are repaid.

The Rise in Property Taxes and Insurance is Causing Some North Carolinains to Fall Behind on their Mortgages

Law Office Blogger — Thu, 23 Jul 2026 16:26:25 +0000

The rapid rise in property taxes and homeowners insurance across North Carolina is quietly driving up monthly mortgage payments, making it harder for many homeowners to stay current and pushing some into delinquency. As escrow costs swell—especially in metros like Raleigh—families who budgeted for a “fixed” mortgage are discovering that their total payment is anything but fixed.

Japan Corporate Bankruptcies Hit 12-Year High

Law Office Blogger — Mon, 13 Jul 2026 20:18:22 +0000

Japan’s bankruptcy surge to an all-time high is mainly the result of persistent inflation, higher labor costs, and a weak yen squeezing small and mid-sized businesses. In 2025, bankruptcies topped 10,000 for the first time in 12 years, with labor shortages and high prices driving many firms over the edge.

Foreclosures in the South East On the Rise but Not Due to Failing to Pay Principle and Interest

Law Office Blogger — Tue, 23 Jun 2026 15:02:44 +0000

Many people assume that foreclosures happen because homeowners cannot afford their mortgage loan payments, but in much of the Southeast, the real issue is different. The biggest problem is not the principal and interest portion of the loan, which often stays the same, but the rising costs included in escrow. Escrow covers things like homeowners insurance and property taxes, and these costs have been increasing quickly. As a result, monthly payments that were once stable and predictable have become much higher, putting financial pressure on homeowners.

Popeyes Franchisee with Over 130 Locations Files Bankruptcy

Law Office Blogger — Tue, 09 Jun 2026 16:18:20 +0000

A major Popeyes Louisiana Kitchen franchisee operating more than 130 locations in the Southeast filed for Chapter 11 bankruptcy because its business model could no longer support a heavy debt load in the face of rising costs and weakening traffic. The company, Sailormen Inc., which runs stores primarily in Florida and Georgia, reported roughly $130 million in liabilities and had already closed around 20 locations as part of its restructuring efforts.