Chapter 7 Bankruptcy in North Carolina
Financial debt can put a strain on personal relationships, lifestyles, and can even cause issues such as stress, depression, and anxiety, which all can have a negative impact on mental, physical, and emotional well-being. It is important to know that there are options to help you deal with some of these financial issues. While there are a variety of options for dealing with financial troubles, this article deals specifically with Chapter 7 bankruptcy in North Carolina. Chapter 7 bankruptcy is the most common type of bankruptcy claimed in the United States.
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy in North Carolina is a liquidation bankruptcy, so many of your possessions will be sold to repay your existing debts.
If you are unable to keep up with your credit card and loan payments, filing Chapter 7 bankruptcy can erase some of your debts. Chapter 7 bankruptcy is an option for consumers with limited income who do not have the ability to pay back at least some portion of their debts. If your household income is below the median level you are eligible for Chapter 7 bankruptcy in North Carolina.
A Chapter 7 bankruptcy case will not involve the filing of a repayment plan. Instead, the bankruptcy trustee gathers and sells the debtor's assets and uses the proceeds from the sale of the debtor’s assets to pay off creditors in accordance with the provisions of the bankruptcy code and laws in North Carolina. Part of the debtor's property may be subject to liens and mortgages that promise the property to other creditors. What's more, the bankruptcy code will allow the debtor to keep certain property however a trustee will liquidate the debtor's remaining assets.
Unsecured debts, including credit card debt and debt as a result of outstanding medical bills can be discharged via Chapter 7 bankruptcy. If you qualify for Chapter 7 bankruptcy your unsecured debts will be cleared when the court approves your filing. The time frame associated with your filing will be anywhere from four to six months.
How Do I File for Chapter 7 Bankruptcy?
If you are considering filing for Chapter 7 bankruptcy you should consider hiring a Chapter 7 bankruptcy attorney in North Carolina who specializes in consumer bankruptcy and bankruptcy laws. You will need to complete a series of official bankruptcy documents, including the Chapter 7 means test. Your petition for bankruptcy must be filed at the bankruptcy court. Your hired bankruptcy attorney handle the filing process for you, which is why it is always in your best interest to hire an experienced Chapter 7 bankruptcy attorney in NC. Outcomes will vary and you will want a bankruptcy attorney who has extensive experience and success in bankruptcy law.
How Much Does It Cost to File for Chapter 7 Bankruptcy?
The costs to file for a Chapter 7 bankruptcy will range from $300 - $400. You can ask the court for permission to pay the fees in four monthly installments. You can also apply to have the fees waived. If you hire a Chapter 7 bankruptcy lawyer in North Carolina, you will also be responsible for paying the lawyer's fees. However, these fees are well spent since an experienced bankruptcy attorney who knows how to get some debts eliminated entirely. Additionally, a trusted bankruptcy lawyer will try to help get you the best possible amount for any assets you liquidate. A highly experienced bankruptcy attorney, such as the attorneys at the Law Offices of Ivey McClellan, can help you save thousands of dollars you may have otherwise needed to pay back by using a less experienced bankruptcy attorney.
How Do I Find a Chapter 7 Bankruptcy Attorney?
Bankruptcy laws are complicated, so it’s in your best interest to work with an attorney. However, you don’t want to choose just any attorney to handle your bankruptcy case. The bankruptcy process involves disclosing a lot of personal financial information, and you’ll want to make sure you’re working with a bankruptcy attorney you feel comfortable with.
The Law Offices of Ivey McClellan has over 70 years of experience in Chapter 7 bankruptcy law serving the state of North Carolina and all of the major cities in North Carolina including Greensboro, Raleigh, Charlotte, Cary, Durham, and many more. While the firm concentrates within the practice areas of bankruptcy, insolvency and debt counseling, Ivey McClellan represents individuals and businesses in a wide array of different areas. Contact us today for a free case evaluation.