Your Local Bankruptcy Lawyers


Bankruptcy Specialists for the Triad Area

At Ivey, McClellan, Gatton & Siegmund ("Ivey McClellan"), one of the few remaining Debtor based business law firms and bankruptcy attorneys in Greensboro, NC, we are able to assist businesses, individuals, and couples with a variety of debt issues, creating customized plans that lead to resolution either inside or outside the courts.

Whether your debts have arisen personally as a result of divorce or unpaid bills or you wish to restructure or dissolve your business, our bankruptcy attorneys are prepared to assist and advise you.

Types of Bankruptcy


Consumer bankruptcy is a term used to describe bankruptcy that is available to individuals and married couples that have incurred typical, non-business debt (debts related to homes, cars, credit cards, medical bills, for example). Alternatively, commercial bankruptcy (also called business bankruptcy) typically involves business entities, such as Limited Liability Companies and Corporations, as well as individuals who have incurred business debt (business lines of credit, equipment loans, rental property loans, for example). Consumer bankruptcies types available to individuals and married couples include Chapters 7 and 13, although in some instances it may involve Chapters 11 or 12.

Consumer bankruptcy is a mechanism individuals can use to restructure debt obligations, get out from under high interest rate loans such as credit cards, medical bills, car loans, and other debts, or restructure loan payments such as past due car or house payments. The goal of a consumer bankruptcy filing is to provide the individual, i.e. you, with a fresh start which is designed to leave more money in your pocket and less in the hands of your creditors. The actual process, time, and mechanism that will work best for you depends on your particular facts and circumstances.


Commercial bankruptcy (also called business bankruptcy) is a term used to describe bankruptcy that is available to business entities, such as Limited Liability Companies and Corporations, as well as individuals with primarily business related debt. Alternatively, consumer bankruptcy typically involves individuals or married couples who have incurred primarily non-business debt. Commercial bankruptcies that are available to companies include Chapters 7 and 11, although in some instances it may involve Chapters 13 or 12. Commercial bankruptcies typically fall in two general categories: liquidation bankruptcies and reorganization bankruptcies. Liquidation bankruptcy (typically Chapter 7) involves the quick and orderly liquidation of company assets, and the distribution of the value of those assets to creditors.

Reorganization bankruptcies (typically Chapter 11) involves the restructuring of assets and debts of the company through the Plan of Reorganization, which is a legal document that once approved by the Court allows the company to take steps necessary to turn the business operations around, including selling some or all of the assets of the company, creating new interest rates and amortization schedules on existing loans to reduce payments, getting out of bad contracts or leases, and paying less to creditors overall in an attempt to make the company profitable. The actual process, time, and mechanism of commercial bankruptcy that will work best for you depends on your particular facts and circumstances.

Understanding Bankruptcy

Confused about the bankruptcy process? Unsure how it fits into your needs? Heard a rumor about what it involves, and wonder if it’s true? Bankruptcy can be a confusing, often intimidating process with many terms, procedures or qualifications that may not be readily apparent to the average person. Lets take a look at some of the most common questions our clients have asked in regards to bankruptcy.

What is Bankruptcy?

Bankruptcy is a legal process administered by the federal government. It provides debt relief to honest debtors in serious financial straits, usually from a combination of factors, the most common of which are:

  1. Divorce
  2. Health Problems
  3. Unemployment
  4. Credit Card Debt

Do I Qualify for Bankruptcy?

In order to qualify for Chapter 7 bankruptcy, you must meet the income criteria (called a means test.) If you earn too much, have a mortgage arrears, or need to protect non-exempt assets, you will need to file for Chapter 13 relief instead.

What is the Difference Between Chapter 7, 11, and 13?

In Chapter 7 bankruptcy, unsecured debts are discharged entirely, giving you a financial fresh start. In Chapter 13, you will be paying off a portion of your debt over the next three to five years. For more information, check out our article on the differences between Chapter 7 and Chapter 13.  Finally, Chapter 11 is a type of debt relief for those individuals or businesses that have a very high level of income.

What Kinds of Debts will be Covered?

Unsecured debts such as credit cards and medical bills can be discharged, as well as some judgement related debts or back taxes. You can not discharge the following debts

  1. Secured debt (loans secured by collateral)
  2. Student Loans
  3. Child Support or Alimony
  4. Recent Taxes
  5. Criminal Fines
  6. Personal Injury judgements

Do I have to Give Up Everything I Own?

Certainly not! Under the property exemptions of bankruptcy, most of our clients do not lose any assets.In most cases, you will be able to keep your car, your home, your retirement savings, personal property and even some valuables. If you have assets that are not exempt, you may have to wait to file chapter 7, file for chapter 13 reorganization, or explore alternatives to bankruptcy.

Can Creditors still come after me?

On the day that your petition is filed with the U.S. Bankruptcy court, all creditors are subject to an automatic stay. All legal actions and debt collection must he halted, including foreclosure, repossession, wage garnishments and lawsuits. Creditors can not continue to harass you or even contact you about your debts.

Will My Spouse also have to file for bankruptcy?

This will depend on if your debts are jointly held. If so, it may be necessary for you to file together. If One individual holds the majority of the debt, they may file separately in order to protect the assets or credit of the other spouse.

Can I save my home?

Filing for bankruptcy will stop foreclosure proceedings, at least temporarily. To discharge other debts on Chapter 7, you must be current on your mortgage. If you are behind on house payments, mortgage arrears can be rolled into a Chapter 13 repayment plan and repaid over time.

Will My Credit Ever Recover?

Absolutely, bankruptcy is actually an opportunity to rebuild good credit if you live within your means and pay your bills on time.

Know Your Options

we’re the experienced professionals you want and need to help advise and guide you through a variety of debt issues such as taxes, harassing creditors, and foreclosures.

Consult with an Ivey McClellan attorney to determine whether you need a strategy for approaching creditors and settling debts in an attempt to pay off existing debt or whether you truly need to file bankruptcy. Our bankruptcy lawyers will guide you through all aspects of the bankruptcy process, including the means test, exemptions to which you are entitled, and choosing the right chapter, or type of bankruptcy you should file.

Meet With A Specialist

Contact us today for a free consultation with one of our bankruptcy lawyers. We’ll make sure that you are armed with sufficient information to determine what course of action is right for you.

Office Locations


100 South Elm Street Suite 500
Greensboro, NC 27401
Phone: 336-274-4658
Fax: 336-274-4540


551 Monroe Street
Eden, NC 27288
Phone: (336) 623-4600