Chapter 7 Bankruptcy Attorneys
If you are overwhelmed with debt, unable to keep up with credit card bills, or struggling with loan payments, filing for Chapter 7 bankruptcy may discharge some of your debts. Chapter 7 bankruptcy, typically referred to as liquidation bankruptcy, allows most individuals to retain all of their assets.
Individuals and companies are eligible to file Chapter 7 bankruptcy in Greensboro, NC. However, chapter 7 bankruptcy is typically reserved for consumers or households with limited income. During the course of the filing process, debtors must list all properties, assets and debts. A trustee is then appointed to each case and placed in charge of collecting, assessing and selling assets for the benefit of creditors.
Contact a Chapter 7 Bankruptcy Attorney Today
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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 creditors are no longer permitted to collect any debts. This is the “clean slate” and fresh start most people need when pursuing bankruptcy to discharge:
- Unsecured debt such as credit card bills or medical bills
- Personal obligations such as mortgages and car payments
- Foreclosures (in rare cases, as this depends on the lenders)
Individuals seeking financial relief are usually not prepared for the complexities of qualifying for and filing Chapter 7. By having a trusted bankruptcy attorney with proven Chapter 7 bankruptcy experience, debtors can navigate the filing process much easier and faster than they would be able to otherwise.
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. 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 case and offer professional guidance. We have assisted countless clients to qualify for Chapter 7 bankruptcy in North Carolina, file the required documents, and eventually wipe-out debt.
We Walk With You Through Exemptions
Federal exemption and state exemption rules apply when filing for Chapter 7 bankruptcy. Some states allow the option to choose between federal exemptions or using 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. Individuals who do not own anything beyond their exemptions 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. Debts that may not be eligible for discharge include:
- Student loans
- Some tax debts
- Child alimony
- Debts incurred through fraud
- Debts resulting from drunk driving accidents
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 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.
Find Out If You Qualify
In order to qualify for Chapter 7 in North Carolina, many courts look at household income.
- 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 file for a Chapter 13 bankruptcy instead. Debtors would be considered able to financially reorganize financial assets and obligations instead of being eligible for liquidation.
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 address the pitfalls and loopholes in bankruptcy forms that can disqualify debtors.
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 through each step of the way to help you seek financial relief and recover after bankruptcy proceedings.