Sometimes bad things such as divorce or sickness abruptly disturb household budgets and threaten financial devastation. Filing bankruptcy may be necessary to protect your assets and allow you to continue to sustain your family. Let us help you. The North Carolina Bankruptcy Court operates in the Middle, Eastern, and Western Districts. Our attorneys have both Chapter 13 and Chapter 7 bankruptcy experience. North Carolina exemption laws allow you to keep certain property in Chapter 7 bankruptcy and help determine how much you’ll pay to unsecured creditors in Chapter 13 bankruptcy. Allow us to help you sort out what property is covered by North Carolina’s bankruptcy exemptions.
In Chapter 7 bankruptcy, a debtor usually has no mortgage or otherwise secured debts. In this type of bankruptcy the courts allow the debtor to liquidate assets that are not protected from creditors and may forgive the debtor of all other debt owed.
Most debtors file Chapter 13 bankruptcy when they a mortgage that is past due, a foreclosure is impending, or they have some other type of secured debtor. In these actions, the courts allow debtors to repay debt over a 3 or 5 year period. This type of plan can force modifications of mortgages and allow the debtor to financially recover as the court often obligates creditors to accept lower payments. Additionally, some assets such as cars might be repaid at amounts that reflect their true value.
Are you in need of a consultation in this type of matter? If so, contact us now.