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Concord Bankruptcy Attorney Shares Overview of Bankruptcy 101

Ferguson Hayes Hawkins, PLLC Jan. 24, 2017

Bankruptcy is a legal solution to reduce or eliminate debt, control actions that creditors can take against you and provide you with a fresh financial start. Bankruptcy laws were created to help average, hard working people that have become overwhelmed by their financial plight. Bankruptcy will be noted on your credit report for 7-10 years but you will be able to restore your credit with proper attention to your finances. There are several types of “Chapters” to file and an experienced bankruptcy attorney can guide you to the best course of action for your situation and through the intimidating process of bankruptcy procedures.

Bankruptcy Protection

Bankruptcy protection against creditors, foreclosure, repossessions is a certainty when you file for bankruptcy. All chapters of bankruptcy can stop collections efforts including garnishment of wages, harassing phone calls, collections letters, home foreclosures and creditor lawsuits. This part of the bankruptcy protection is referred to as the “automatic stay”. The protections provided by the “automatic stay” are immediate when you file for bankruptcy.

Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is designed for debtors having financial difficulty that do not have the ability to pay their existing debts. It is best suited to those cases in which the majority of debt is unsecured. Debtors can protect certain assets up to a predetermined amount. This is probably the most common form of personal bankruptcy.

Chapter 11 Bankruptcy

Chapter 11 Bankruptcy can be filed by companies, or by individuals, over the debt limitations of Chapter 13 bankruptcy. The goal is to reduce or eliminate unsecured and unwanted debts while restructuring those debts that are needed for continued operation. Chapter 11 Bankruptcy does provide immediate protection for the debtor.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a total reorganization of the debts for an individual with regular income which is designed for debtors that are behind on secured debts such as home mortgages and car loans. The goal is to resume regular monthly payments and pay the arrearages over time. The U.S. Bankruptcy Code gives the debtor a maximum period of 5 years to repay creditors. A Chapter 13 is completed under the supervision of the courts.

Get Bankruptcy Help Today!

Getting bankruptcy help is as easy as calling our Concord law office to set an appointment for a Free Consultation. We provide flexible payment options for our services and we can quickly help you get peace of mind from the benefits and protections afforded by bankruptcy laws in North Carolina. For an appointment please call today and let us know when would be a convenient time to meet. We look forward to helping you soon.