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Facing bankruptcy is stressful. You may be unsure whether you meet eligibility requirements or what will happen to your assets once you file. Our Forest City Chapter 7 bankruptcy lawyers can help.
The legal team at Farmer & Morris Law, PLLC, has helped over 10,000 clients. We’re ready to take on your case. Contact our Forest City bankruptcy lawyers and schedule a free initial consultation today.
Who is Eligible to File for Chapter 7 Bankruptcy in Forest City?
Being able to file for Chapter 7 bankruptcy typically depends on your income level. You will be eligible to file if your income is below the state median income for families of your size. For example, if you’re a family of two and the state median income is $70,000, but your household income is $50,000, then you’d likely be able to file for Chapter 7.
There are exceptions to this, though, so it’s always best to discuss with your North Carolina bankruptcy lawyer which form of bankruptcy you should file.
Who May Be Ineligible to File for Chapter 7 Bankruptcy?
You may be ineligible to file if you:
- Already filed and received a discharge for Chapter 7 bankruptcy in the past eight years
- Filed for bankruptcy, and it was dismissed within the last 180 days
- Have committed bankruptcy fraud
Why Should You File for Chapter 7 Bankruptcy?
If you are under financial stress due to debt, bankruptcy can ease that stress.
Filing for bankruptcy may give you:
- Debt discharges so that you have financial relief
- An automatic stay that stops creditors from contacting you
- An improved credit score over time, since debts will be removed from your credit report once they are properly discharged
However, it is important to remember that there are downsides as well. You may have a harder time getting low rates for loans or credit cards. The bankruptcy will also be reflected on your credit report. Our lawyers will explain how the bankruptcy may affect you.
How Can a Chapter 7 Bankruptcy Attorney in Forest City Help You?
If you’re considering filing for bankruptcy, you’re likely under significant financial pressure. This stress can be overwhelming on its own, let alone on top of a complicated filing process. Our team can step in to handle the entirety of the legal process.
We will:
- Fully explain your rights and responsibilities
- Protect your assets
- Manage your case and ensure it stays on track
- Prepare all needed forms to ensure they are accurate, complete, and filed on time
- Represent you in all necessary hearings
- Offer advice throughout the process
You can explore the testimonials on our website to learn more about how we’ve helped our previous clients.
What Assets Are Exempt From Liquidation in Chapter 7 Bankruptcy?
Many ask, “Will I lose my house if I file for Chapter 7 bankruptcy?” When filing for bankruptcy, some assets may be liquidated to pay down debts. However, some assets are exempt from the liquidation process, including:
- Homestead equity (up to statutory limits)
- Motor vehicle equity (up to statutory limits)
- Retirement accounts
- Pensions
- Clothing and household items
Your lawyer will explain which assets are eligible for liquidation. They will also fight to protect your assets whenever possible.
What Documentation is Required to File for Chapter 7 Bankruptcy?
To be eligible for Chapter 7 bankruptcy, you will need to have the correct documentation. For example, you will need to show your debts, your income, and have other financial documents ready.
Required documentation includes:
- A list of your debts with proof, including the creditor and the amount of the debt itself
- Proof of your current income, from all sources
- A list of your assets
- A summary of your monthly expenses required for food, housing, and other bills
- Your most recent tax return(s)
This information will be submitted with your petition to file for bankruptcy. Your Chapter 7 bankruptcy lawyer in Forest City can help you with compiling this information and documentation.
What are You Not Allowed to Do When Filing for Chapter 7 Bankruptcy?
Filing for bankruptcy is a legal process, which means that you must follow the guidelines and restrictions of the court.
Things you should avoid include:
- Misrepresenting your debt or financial situation while under oath
- Trying to hide or keep assets that would otherwise be liquidated
- Missing any required payments to creditors
If you are unsure about the process, talk to your lawyer about any questions or concerns that you have.
How Long is the Chapter 7 Bankruptcy Process?
Typically, the Chapter 7 bankruptcy process can take four to six months. However, in some cases it may take a shorter amount of time or a longer one. There are a few factors that may cause delays.
These factors are:
- More information is needed, like if you didn’t submit enough financial information for the court.
- There is a student loan involved, as this process is more complex and generally takes longer
- Property issues
- Creditors need more information
How Long Does the Bankruptcy Stay on Your Credit Report?
In most cases, a Chapter 7 bankruptcy can stay on your credit report for ten years. Your lawyer can explain what this means for your future financial situation.
Contact a Chapter 7 Bankruptcy Lawyer in Forest City Today
The pressure of financial debt can feel insurmountable. You may have overdue loan payments and credit card bills that never seem to go down. Filing for Chapter 7 bankruptcy can give you the chance at a fresh start. Our Forest City Chapter 7 bankruptcy attorneys are here to help you achieve that financial freedom.
The legal team at Farmer & Morris Law, PLLC, will guide you every step of the way. Reach out today to schedule a meeting with our team.
