Bankruptcy Lawyer Forsyth County

What Debts Can't Be Included in a Forsyth County, NC Bankruptcy Case?

If you file Chapter 7 bankruptcy as an individual or joint filer with your spouse, it's important to know that there are a few different debt obligations you cannot have discharged like other unsecured debts. Debts you generally cannot include, except under very rare circumstances, include:

• Student loans: If you want to know if you can file bankruptcy on student loans, the answer is generally not. This is the case unless you can show that paying them off would be an undue hardship for you.
• Financial assessments in criminal matters: Any fees a criminal court judge may have previously ordered you to pay, including court fines or any restitution to your victims.
• Court judgments in civil matters: This category specifically refers to instances in which a court in another jurisdiction ordered a defendant (and now bankruptcy filer) to pay a personal injury settlement to the party they recklessly or intentionally injured.
• Tax debts: If you want to know if bankruptcy clears tax debt, the answer is generally no. This is especially the case when tax obligations, like trust funds, Social Security (FICA), or payroll taxes, are concerned. However, it may be possible to get a personal income tax debt discharged through Chapter 7, depending on how old it is.
• Child support or alimony: The bankruptcy court respects orders entered in by judges in other jurisdictions and, thus, doesn't allow for the elimination of family law financial obligations by filing bankruptcy.

You may not be able to request relief from paying credit card debt if you incurred it by attempting to pay off non-dischargeable debts (like the ones above). Additionally, debts incurred within 90 days of your filing for bankruptcy may not be dischargeable either.

Steps in the Bankruptcy Process 

As you're considering filing your bankruptcy petition, you're probably wondering how to expect things to progress after doing so. Generally, bankruptcy proceedings happen as follows:

• You complete pre-bankruptcy counseling
• You file your bankruptcy petition listing any secured and unsecured debt you may have
• The bankruptcy judge assigned to your case issues an automatic stay, meaning debt collectors can't continue harassing you about what you owe -- even if you've fallen behind in making mortgage payments
• There's a meeting of creditors
• You complete the debtor education course
• The bankruptcy trustee issues a notice of discharge in your case

Now, of course, the steps above best describe how a case may proceed if an NC resident or spouse declares bankruptcy like Chapter 7, but not ones involving individual debtors or businesses pursuing a reorganization bankruptcy where drafting a payment plan, making timely payments, and attending hearings or submitting paperwork to the Court to keep them in the know about your progress is necessary. This is why it's so critical for you to meet with a bankruptcy lawyer in Forsyth County like ours at Ivey McClellan to discuss your specific case so that they can advise you on what to expect at every step of the process.

How an Experienced Bankruptcy Attorney Helps You

Bankruptcy, like most legal matters, is something you can handle on your own without a lawyer's assistance, but doing so is ill-advised. Why?

It has to do with bankruptcy attorneys having an understanding of the different bankruptcy chapters. It’s important to know which chapters of bankruptcy may be ideal for you to file in your specific situation. Plus, bankruptcy codes, like most laws, are complex. Making sense of bankruptcy laws and how they apply to your case can prove challenging without any prior legal training.

That's not to say that just any attorney makes for an ideal bankruptcy lawyer, though. It's important to find an experienced bankruptcy lawyer and, during that free consultation with them, to ask questions like the ones we detail below.

What To Look For When Choosing a Bankruptcy Attorney to Represent You

Some details you may want to inquire about to determine whether an attorney is the right fit for your case include:

• Their experience in handling similar cases to yours (i.e., business versus consumer bankruptcy or chapter type)
• About how successful they've been in handling bankruptcy cases like yours (i.e., getting the debt discharged or bankruptcy approved by the Court)
• Each party's responsibilities, for example, what, if anything, you may need to take care of, and what aspects of your case can you expect them to handle (i.e., attending all court hearings, like the meeting of creditors)
• Their fee structure, including whether it's a flat rate or hourly-based

Our attorneys serve pursuing debt relief anywhere in Winston-Salem and places in between, like Kernersville, Clemmons, Rural Hall, and Lewisville. We are eager to help you navigate the bankruptcy court system in the Greater Piedmont Triad so that you can move forward in personally regaining control of your finances or putting your business back on a growth path once again. Contact us to speak with a bankruptcy lawyer in Forsyth County and make the creditor calls and stress stop today.