Filing Chapter 7 Bankruptcy In Greensboro, NC

Steps To Filing a Chapter 7 Bankruptcy Case in Greensboro

Before you petition the courts for bankruptcy, you need to make sure that you meet the eligibility requirements for filing for a Greensboro Chapter 7 bankruptcy. Learn more about the four requirements you’ll need to meet based on current bankruptcy laws:

1. Income Requirements

Chapter 7 bankruptcies are designed for Greensboro residents with a modest income. To be eligible to file, you must make an income that’s below the median income for NC.

If you earn more than the state’s median income, then you’ll need to pass the means test to qualify.

2. Pass the Means Test

The means test helps courts determine if you should apply for a Chapter 7 or a Chapter 13 bankruptcy. The test requires you to provide your last six months of income, expenses, debts, and other living expenses. The trustee presiding over your Greensboro case will then determine if you earn enough to repay your debt. If you don’t, then you will be ruled as eligible to file for a Chapter 7 bankruptcy.

Bankruptcy law dictates that if you can afford to pay your debts, you will be required to file a Chapter 13 claim. This type of personal bankruptcy still allows for reorganization of your unsecured debt and secured debt, but you’ll be subject to a repayment plan.

3. Fraud or Abuse Allegations

Have you already attempted to file for bankruptcy in the past? Was your case discharged because of a court order violation? Did your bankruptcy filing end in a dismissal? Was your bankruptcy found to be fraudulent or an abuse of the system? If you’ve faced these types of accusations before, then you might not be eligible to file a new Greensboro, NC bankruptcy case.

Do you think you could possibly fall into this category? If so, then it’s important to speak with a bankruptcy lawyer at our Greensboro law firm Ivey McClellan. We can help you determine whether you’re still eligible to file for another bankruptcy case in North Carolina.

4. Prior or Recent Bankruptcies

Similarly, if you’ve filed a bankruptcy case within the past eight years, then you may not be eligible to file a new bankruptcy case yet. For Chapter 7 bankruptcies, you must wait at least eight years. For a Chapter 13 bankruptcy, you must wait at least six years.

5. File the Bankruptcy Petition

Once you’ve determined that you’re eligible to file for bankruptcy, you’ll want to file the petition with your local court in the Greater Piedmont Triad area in North Carolina. Immediately upon taking this action, your creditors will be alerted to the situation. Until further notice, they can not legally pursue any type of collection activity. This is called an automatic stay, and it’s an important part of the debt-relief process. If your Greensboro home was in danger of foreclosure or your vehicle was in danger of repossession, this will prevent any further action. If you were at risk for garnishment, then that will halt, too.

At this point, you’ll want to collect all your necessary financial information and documents.

6. Attend Your Hearing

Next, you’ll attend a hearing with your creditors where they’ll inquire more about your financial situation. Depending on how detailed your financial documents are, your creditors may make a decision without having an in-person meeting with you here in Greensboro.

Working With an Experienced Greensboro Bankruptcy Attorney

As you go through this process, your finances will be out in the open. It is advised that you hire a bankruptcy attorney to help protect your rights and interests as you go through this process. A good bankruptcy attorney like our Ivey McClellan ones will help you determine your eligibility, collect your financial documents, and help you get through your hearing in Greensboro. They’ll help with filing exemptions to protect your important assets, and they’ll help you reach the best possible legal outcome in your situation. Even better, they can continue to help even after bankruptcy.