There Is No Substitute for Experience Put us in your corner

A Quick Overview of Bankruptcy Law in North Carolina

Ferguson Hayes Hawkins, PLLC Jan. 24, 2017

People can find themselves in dire financial straits for all sorts of reasons. From medical expenses to job losses, it is easy to get behind and see no way to catch up. After trying just about every strategy that comes to mind, it may be time to talk with a bankruptcy law firm about filing for protection. Here are some signs that you need to call a lawyer today.

Making No Headway Introduction

Bankruptcy is a difficult process for anyone to go through. It is vital to get quality advice during this time period. In the state of North Carolina, there are thousands of people who have to file for bankruptcy ever year. Bankruptcy attorneys need to make sure they are understanding all of the needs of their clients before giving them legal advice. Choosing a bankruptcy law firm to work with is one of the most important financial decisions that anyone will make. Here are several things to keep in mind about the bankruptcy process overall.

What is Bankruptcy?

Bankruptcy is when a person can no longer pay their bills. In order to get absolved of their debt, a person can file for bankruptcy. This is an important decision to make as it will have consequences down the road for anyone who files for bankruptcy. Over the long term, people who file are going to have a difficult time getting another loan. Bankruptcy attorneys should be able to walk you through all of these factors in their initial consultation. It is vital that a bankruptcy law firm has the best interests of a client in mind when deciding what advice to give.

When You Should I File?

The decision to file is a difficult one for anyone to make. Over the long term, bankruptcy can have a lot of consequences with a person’s finances. This is why it is so important to get quality advice in this area. There are many different things to keep in mind with this decision. Many people struggle with their personal finances on a daily basis. Deciding to go with bankruptcy should not be seen as something to fix all of a person’s personal finance issues in the short term. This should be viewed as a last resort that should only be decided upon when there are no other options. Anyone who thinks they may have a problem with their finances should not think of bankruptcy as a fix for everything.

Life After Bankruptcy?

Filing for bankruptcy will have many different consequences later on in life. There are many different complications that a person will have after filing for bankruptcy. For example, the credit score of a person who files will be very low for years after the decision. In addition, it will be difficult to ever get a new loan again. However, over time a person can build their credit back up to where it was before the decision was made to file.

You are managing to make at least the minimum payments on your bills, but that is not enough. The interest rates keep the balances growing a little each month. Couple that with the fact that you recently had to use some of your remaining credit to pay for a car repair, and it is obvious that you will never get out of the financial hole. As much as you dislike the idea, now is the time to consult with an attorney and see if you should file for bankruptcy.

Creditors are Calling

A ringing phone or the sound of mail dropping in the box fills you with dread. That’s because you know the contact is likely to be from a creditor or a collection agency. Some of them are getting insistent about wanting their money now. The only problem is that you do not have any money to give them. It helps to know that bankruptcy lawyers can bring those contacts to a halt quickly. Once you do file for bankruptcy, those creditors will communicate directly with the court.

Overwhelmed by Taxes

Medical expenses led you to put off paying some of your taxes. While the plan was to get past the immediate crisis and then catch up with those tax payments, things did not work out that way. While it is true that there are only limited circumstances in which tax debt can be discharged, bankruptcy lawyers can utilize a Chapter 13 to stop collection efforts, prevent liens, and give you time to repay the taxes while under the protection of the court.

Bankruptcy After a Divorce

Some people find that after going through a divorce, they have not choice but to file for bankruptcy. This action will not impact child support or alimony payments that are due, but it can help with any unsecured debt that the client is carrying. If there is no other way to make those court-ordered payments on time, it pays to know that bankruptcy lawyers can help clients decide which type of personal bankruptcy would be in their best interests.

For anyone who is feeling as if there is no way to recover from a financial setback, contact a bankruptcy law firm today. Call our office today and request a consultation as soon as possible. After looking over your financial affairs, it will be easier to provide advice about which form of bankruptcy is right for you.