Chapter 7 Bankruptcy Attorneys
What is Chapter 7 Bankruptcy?
If you are feeling overwhelmed with debt, unable to keep up with your credit card bills or loan payments, filing for Chapter 7 bankruptcy might be able to discharge some of your debts. Chapter 7 bankruptcy, typically referred to as liquidation bankruptcy, allows most individuals declaring bankruptcy Chapter 7 to retain all of their assets. However, in some cases of Chapter 7, possessions may be sold in order to repay existing debts and creditors.
Both individuals and companies are eligible to file Chapter 7 bankruptcy in Greensboro, NC. Chapter 7 bankruptcy is typically reserved for consumers or households with limited income. In the course of filing, debtors must list all assets and all debts. A trustee is then appointed to each case and placed in charge of collecting and selling assets for the benefit of creditors.
What Can A Bankruptcy Attorney Do For Me?
The goal of filing Chapter 7 bankruptcy is to get a discharge, at times referred to as a “get out of jail free card.” If a debtor successfully complies with the U.S. Bankruptcy Code provisions, a few months after filing bankruptcy the Bankruptcy Court mails an order declaring that creditors are no longer permitted to collect any debts. This is the “clean slate” and fresh start of financial relief most people need when pursuing bankruptcy. Unsecured debt such as credit card bills or medical bills are discharged for qualifying Chapter 7 bankruptcy debtors. In many cases, personal obligations to repay debts such as mortgages and car payments are wiped clean. However, it may be difficult to help you prevent foreclosure matters as lenders may foreclose on homes if they wish to do so.
Individuals seeking financial relief are not prepared for the complexities of qualifying for and filing Chapter 7. By having a trusted bankruptcy attorney on your side who has proven experience with Chapter 7 bankruptcy, debtors can navigate the filing process much easier and faster than they would be able to otherwise. Contact Ivey McClellan today to learn the pros and cons of filing bankruptcy to discharge debts.
Chapter 7 Bankruptcy Attorneys Help You File
To apply for Chapter 7 bankruptcy, a series of official bankruptcy documents including a means test must be completed on behalf of the debtor. Petitions are then filed with the U.S Bankruptcy Court. Below is an outline of what a typical Chapter 7 Bankruptcy filing process looks like. Keep in mind this is a broad overview and may vary from person to person.
To learn more about how to file this type of bankruptcy in Greensboro, one of our skilled Chapter 7 bankruptcy attorneys will review your particular case and offer guidance for Chapter 7 in North Carolina. We have assisted countless clients qualify for bankruptcy, file required documents, and wipe out their debt.
We Walk With You Through Exemptions
Federal exemption and state exemption rules apply to Chapter 7 bankruptcy filings. Some states allow the option to choose between federal exemptions or the state’s guidelines. Other states strictly adhere to their own state exemption guidelines. To find out more about which exemption rules apply to you, talk to a Chapter 7 bankruptcy attorney in Greensboro today.
In addition to listing all assets, debtors may declare certain property as “exempt” from collection (commonly referred to as exemptions). An exemption is the value of an asset, in dollar amounts, that a trustee cannot seize. Exemptions are not available to business entities and all assets in a Chapter 7 case are available to creditors. Actual exemptions and how they apply vary from case to case. However,most individuals claim nearly everything they own as exempt, depending on the amount of equity held. This may include:
- Cars & Vehicles
- Household Furnishings
- Retirement Accounts
A wildcard exemption applies to anything else a debtor may own, such as bank accounts. Since most individuals do not own anything beyond their exemptions, they are coded as a “no asset case” and trustees do not collect any assets. Consult with your bankruptcy attorney to find out if your assets are covered by bankruptcy exemptions.
Ivey McClellan Understands Bankruptcy Limitations
Not all debt is discharged through Chapter 7 bankruptcy. Student loans, some tax debts, child alimony, debts incurred through fraud, and debts resulting from drunk driving accidents are not discharged.
Chapter 7 bankruptcy can discharge most unsecured debts including credit card and medical bills. Debtors also have the opportunity to discharge secured debts like car loans. For example, a debtor may surrender their car in order to get rid of that debt. However, Chapter 7 does not help with some tax debts or keeping property with out-of-date loan payments For these kinds of debts, individuals may seek relief under either Chapter 13 or Chapter 11, both of which are forms of reorganization rather than liquidation that arrange a manageable payment plan to resolve debts. To understand what among your personal debts can be forgiven, contact a trusted Chapter 7 bankruptcy attorney. Ivey McClellan’s team of experienced attorneys understands the limitations and differences between different bankruptcy types in Greensboro, NC.
Find Out If You Qualify
In order to qualify for Chapter 7 in North Carolina, household income must be below the state's median income level. For incomes above the state’s median, individuals may be eligible to file Chapter 7 bankruptcy by satisfying the means test. A means test is a challenging and complicated formula that evaluates a debtor’s income over the last six months. If a debtor’s income is deemed too high, they may be ineligible to file Chapter 7 bankruptcy.
In these situations, the U.S. Bankruptcy Code states that debtors who can afford to repay some debts, in the interest of fairness, require a Chapter 13 filing instead. Debtors would be considered able to financially reorganize, instead of eligible for liquidation. Ivey McClellan’s bankruptcy attorneys have a long history of working through the complicated means test and they are familiar with the required forms and processes. We can help you determine which type of bankruptcy you qualify for and navigate the means test in order to get you the relief you deserve.
Work With A Qualified Chapter 7 Bankruptcy Attorney
The attorneys at Ivey McClellan have years of experience working with bankruptcy Chapter 7 cases in North Carolina. We have experience confronting pitfalls and loopholes in bankruptcy forms that can disqualify debtors. If you are looking to hire a local bankruptcy lawyer specializing in Chapter 7, Ivey McClellan is the firm for you.
To find out if you qualify for Chapter 7 in North Carolina, contact us today to arrange a confidential consultation with our Chapter 7 bankruptcy attorneys. We will guide you each step of the way to help you seek financial relief and recover after bankruptcy proceedings.