Bankruptcy is a very serious legal step that many individuals will attempt to avoid at all costs. However, sometimes it is absolutely necessary to file a bankruptcy petition when there is the potential of losing a home or other valuable real estate that can be saved with a claim. Bankruptcy laws are established federally, but many states have their own rules concerning bankruptcy proceedings within the state and often state laws are more restrictive than federal laws, as all federal asset exemptions are not necessarily applicable. Individuals or couples needing to file bankruptcy in NC will face this problem, and this restriction potential is exactly why it is vital to retain an experienced and effective Concord bankruptcy attorney to represent your claim to the court.
What Chapter Should I Use?
All bankruptcy applicants in North Carolina are evaluated for asset and liability level as well as income, which then will govern which chapter of bankruptcy should be implemented. Those who qualify for Chapter 13 bankruptcy should almost always file under this protection because the filer can possibly keep their home and integrate the payments into part of the consolidated repayment schedule. In addition, personal agreements with certain creditors can also help avoid including a debt in the payoff schedule, but it is very important to ensure that the new agreement will be feasible along with the repayment plan that is approved when the bankruptcy is finalized. Your bankruptcy law firm will work to help you qualify for Chapter 13 and advise on what bankruptcy structure will be best for your personal situation.
Bankruptcy Asset Protection
Chapter 7 bankruptcy is a general discharge of qualified unsecured debt. It is important to note that some forms of debt cannot be discharged, such as taxes or college education loans, and many times personal property that is used as collateral on a loan will be repossessed. However, the idea that you will automatically lose a home when you file bankruptcy in NC is a myth, as the equity in a home is the primary consideration and is determined by existing property valuation and your personal payment record on the property. And in North Carolina, married couples can “double” their individual exemption, which can allow a home added protection from debt collectors and bankruptcy trustees alike. Chapter 13 filings are essentially repayment plans for all secured debt, along with discharge of all unsecured debt that qualifies under state law.
Call a Concord Bankruptcy Attorney
Anyone considering a bankruptcy proceeding in North Carolina should contact our bankruptcy law firm and let us conduct a full evaluation of your financial situation and develop an effective plan for your personal bankruptcy needs.