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North Carolina Bankruptcy Information

Chapter 7 and Chapter 13 Bankruptcy in North Carolina

Bankruptcy laws help debtors discharge debt and start over. When should you consider bankruptcy? If you suffered a job loss, injury, divorce or unexpected death, you may be facing a financial crisis. You may be dealing with high credit card bills, home foreclosures or harassing creditors.

Filing for bankruptcy protects both creditor and debtor and allows the debtor to work themselves out of a bad financial situation. If you live in Raleigh, Durham, or Chapel Hill, North Carolina, filing bankruptcy may stop creditor harassment.

  • Filing bankruptcy will initiate an automatic stay. The automatic stay will stop certain lawsuits, foreclosures, utility shut-offs, evictions, repossessions, garnishments, attachments, and debt collection harassment. Under the automatic stay, all creditors will have to go through a U.S. Bankruptcy Court trustee in order to deal with their debtors.

Chapter 7 or Chapter 13 Bankruptcy may be an option for debtors. Chapter 7 Bankruptcy, also known as a \"liquidation bankruptcy\", is the simplest and quickest form of bankruptcy. It is available to individuals, married couples, corporations, and partnerships.

Chapter 13 Bankruptcy is the second bankruptcy available to individuals and is called a wage earner\'s plan. Chapter 13 Bankruptcy allows individuals with regular income to develop a plan to repay all or part of their debts.

There are certain advantages for filing Chapter 13 Bankruptcy. Chapter 13 Bankruptcy may: save your home from foreclosure, allow you to reschedule secured debts, provide protection for co-debtors, consolidate your loans under one plan, allow you to keep non-exempt property, extend certain tax obligations, student loans, or other such qualifying debts.

Chapter 7 Bankruptcy will not offer the benefits listed above. If you have assets you want to keep, you currently have an income, and you want to try to pay your creditors as much possible, consider filing Chapter 13 Bankruptcy.

If you do not have many assets, you do not have a mortgage, or you do not qualify for Chapter 13 Bankruptcy, and you just want to get out from under the burden of your debts, you may want to file Chapter 7 Bankruptcy.

Not everyone can file for Chapter 7 Bankruptcy. First, filers must pass a means test. If your income is below the median income for families in your state, based on Census Bureau statistics, you will be eligible, but if you make more than the median income for families, you may not be able to file Chapter 7 Bankruptcy. As of October 2010, the median income for a household in North Carolina was: $38,656 for one income earner; $52,008 for two income earners; $56,727 for three income earners; and $67,056 for four income earners. Add $7,500 for each household earner thereafter.

Some filers whose median income is above the state average may qualify to file for Chapter 7 Bankruptcy, but it will depend on their disposable income. Disposable income or discretionary income, is the total gross income of all the earners in a family, minus the cost of taxes and living expensesIf your discretionary income is between $100 and $166.66 per month, your eligibility for Chapter 7 Bankruptcy is determined by the percentage of your discretionary income to your debt, with 25% as the cut-off. If your discretionary income over 60 months exceeds 25% of your debt, you must file Chapter 13 Bankruptcy. If it is less, you can file Chapter 7 Bankruptcy.


More Help on North Carolina Bankruptcy Information

  • Credit Report - Credit reports are documents provided by major credit reporting companies (most notably Experian, Trans Union and Equifax) which contain personal information about individuals such as: how much money the individual has borrowed, how much debt is owed by the individual and the individual\'s bill payment history. - read more

  • Liquidation - Chapter 7 Bankruptcy is known as a \"liquidation\" bankruptcy and creditors will be paid from the liquidation of the debtor\'s assets. - read more

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Chapter 7 and Chapter 13 Bankruptcy Help

The two most common consumer bankruptcies are Chapter 7 and Chapter 13, our sponsoring lawyers handle these types exclusively so you can be sure you are getting accurate legal advice when you file bankruptcy. Our Bankruptcy attorneys will fight to protect your rights and your property, fight the aggressive and annoying creditors for you, and they can help you keep your home, vehicles and other property.

A lawyer will be committed to getting you debt relief and providing you with valuable information, services and advice to get you a better financial future. There are many convenient locations to make filing bankruptcy or learning about the alternatives we offer, even easier.

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