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Our Concord Attorneys Share Details About NC Bankruptcy Laws

Ferguson Hayes Hawkins, PLLC Jan. 24, 2017

Before filing for bankruptcy in North Carolina, there are several options at your disposal. It is important to contact a Concord bankruptcy attorney for advice on filing for bankruptcy and what considerations to make. The following web page will discuss some of the basic elements for North Carolina bankruptcy law.

Chapter 7 vs Chapter 13 Bankruptcy

According to North Carolina bankruptcy law, you have two options if you want to file bankruptcy in NC. Chapter 7 bankruptcy and Chapter13 bankruptcy are similar in that they offer relief for different types of debt and protections against foreclosure, repossession, and lawsuits. Consult a Concord bankruptcy attorney for clarification on the differences and applications of both laws.

Chapter 7 bankruptcy is suited for people who are facing large medical bills or credit card debt but who have a meager income and do not own their home. In some cases, your property may be liquidated as part of the filing process. However, these cases are not common since North Carolina law offers protection to much of your possessions. It is advisable to contact a Concord bankruptcy attorney to learn about the exceptions that apply to Chapter 7 bankruptcy.

Chapter 13 bankruptcy helps people gain control of their debts provided they have a steady income. Chapter 13 bankruptcy combines and orders debts and stops collection through automatic stay. Regular payments are sent to a trustee appointed by the court to be responsible for clearing your debt. The period for repayment is 3-5 years after which all debts are supposed to be cleared. Chapter 13 bankruptcy also provides more protections for cars, homes, and other possessions than Chapter 7 bankruptcy. You should consult a bankruptcy law firm to determine the benefits of Chapter 13 bankruptcy over Chapter 7 bankruptcy.

If you are looking to file bankruptcy in NC, you can either choose between Chapter 7 and Chapter 13 bankruptcy. While both types of bankruptcy rules offer protections against your assets and may help you deal with your debts, they have distinct differences. Chapter 7 bankruptcy is a good option for people who want to clean their slate and start anew. It is the ideal choice if you want to be relieved from all your debts. Chapter 13, on the other hand, is suited for people who want the repayment period of their loans to be extended. It gives a debtor the chance to reorganize their finances and develop an effective payment plan. A bankruptcy law firm can help you choose between Chapter 7 and 13 bankruptcy options depending on your situation.