Major life events, such as a medical problem, divorce, or unemployment, can make it difficult to pay off your debts. When the COVID-19 pandemic led to significant changes and shelter in place orders, widespread layoffs and economic instability occurred throughout the country. Many companies and individuals were forced to file under various bankruptcy chapters to protect their assets.
Bankruptcy allows you to discharge certain debts, which can protect your assets from creditors and allow you to receive a fresh financial start. There are several bankruptcy chapters you can file under, which is why you may want to discuss your legal options with a Spindale bankruptcy lawyer. The bankruptcy process can be complex and requires debtors to meet strict, time-sensitive filing deadlines.
At Farmer & Morris Law, PLLC, we offer a variety of legal services that could be beneficial to your situation. If you are filing for bankruptcy protection because of an eviction, foreclosure, or civil judgment, we may be able to stop the ejection and collection process. We can file a bankruptcy petition on your behalf, which may halt most collection actions performed by creditors.
The team at Farmer & Morris Law, PLLC can complete bankruptcy filing by using copies of your income statements, bank statements, bills, and credit reports. Depending on your situation, you can choose to file for discharge or reorganization.
To learn more, call Farmer & Morris Law, PLLC today at (828) 286-3866.
Bankruptcy Chapters You Can File Under
Our legal team represents individuals and businesses filing under Chapter 7 and Chapter 13 bankruptcy. We can also help those who are filing under Chapter 11 reorganization bankruptcy and Chapter 12 if they are considered a family farmer.
When you work with us, our goal is to protect your assets and help you regain financial stability to the extent that the law allows.
We have listed specific details that may pertain to your situation below:
Filing for Chapter 7 Bankruptcy
Also known as a zero-asset filing, a Chapter 7 bankruptcy is an individual filing that occurs when you do not have any assets to distribute to creditors and are unable to pay them. Simply put, your debt far exceeds your income and personal assets.
Once you complete the Chapter 7 bankruptcy process, your debts are discharged, meaning that creditors are not allowed to collect them. However, not all debts can be discharged in bankruptcy.
According to information provided by the United States Courts, examples of non-dischargeable debts include:
- Child support and alimony payments
- Court fines and restitution
- Student loans
- Personal injury debts or judgments, if caused by the debtor driving while intoxicated
- Debts owed to the government, such as property and income taxes
Most individuals who file for bankruptcy experienced a major life event that caused sudden financial problems, which is why bankruptcy is structured to provide you with a fresh start following discharge.
Filing for Chapter 13 Bankruptcy
Debtors who can pay something back to their creditors but need time to restructure their finances can file a Chapter 13 bankruptcy petition. Instead of completely discharging your debts, Chapter 13 allows you to reorganize your finances so you can pay some of your creditors, meaning you can set up new payment arrangements with them. Some of your debts will be discharged in the process. You will have several meetings and hearings during your Chapter 13 filing, as the trustee will evaluate your progress and recommend revisions to your plan if necessary.
You will create a monthly payment plan with the court. To file a Chapter 13, you cannot exceed certain debt limits, must be an individual (not a business), and have enough income to pay your bills and Chapter 13 payment plan obligation. Having a steady job or regular income enhances your ability to have your Chapter 13 plan approved.
A Spindale bankruptcy lawyer can negotiate lower interest rates or reduced debts with creditors, meaning if you have a car loan, your attorney and creditor can agree on a different method of payment, pay-off amount, or interest rate.
Filing for Chapter 11 Bankruptcy
Similarly to Chapter 13 bankruptcy, you may be granted the ability to pay off your creditors through a repayment plan. However, before any strategies can be implemented, it must be approved by your creditors and the court system. Without legal assistance, this can prove to be a lengthy and complicated process. When you work with a Spindale bankruptcy lawyer, they can examine your finances, handle communications with your creditors, and take actions to protect your assets. In some situations, according to the United States Courts, your Chapter 11 case could be converted into a Chapter 7 case.
To learn more about what this entails, call Farmer & Morris Law, PLLC at (828) 286-3866.
Filing for Chapter 12 Bankruptcy
Filing under this chapter is designed to meet the economic hardships faced by family farmers or fishermen. If this form of bankruptcy is relevant to your situation, you will generally have to come up with a payment plan to pay your creditors. According to the North Carolina Bar Association, you usually have anywhere from 3 to 5 years to accomplish this goal. This plan of action made by you, your attorney, and the trustee overseeing your case, will aim to have you pay off your debts while also being able to provide for yourself and your family.
For a free legal consultation with a bankruptcy lawyer serving Spindale, call 828.286.3866
The Aftermath of Filing for Bankruptcy
A bankruptcy filing will show up on your credit report and have implications on your ability to qualify for loans, housing, and other financial opportunities. While filing for bankruptcy can seem like a discouraging experience, it can provide an opportunity for you to discharge your debts and get a fresh start.
North Carolina places restrictions on how many times you are able to file for bankruptcy in a given time span. Speaking with a Spindale bankruptcy lawyer can explain in further detail what implications certain deadlines can have on your case.
Spindale Bankruptcy Lawyer Near Me 828.286.3866
Call Farmer & Morris Law, PLLC Today
Losing a job or experiencing a serious medical problem can lead to financial distress, which may make filing for bankruptcy a pragmatic decision. At Farmer & Morris Law, PLLC, we understand what a stressful time this likely is for you and your family.
We offer a free consultation, during which you will have the opportunity to share with us the details of your situation. To get started, call Farmer & Morris Law, PLLC at (828) 286-3866.