530+ Google Reviews
Whether you had unexpected bills that quickly mounted up or were trying to hold everything together, bankruptcy can happen to anyone. When you’re struggling with financial pressures, our Gastonia Chapter 7 bankruptcy lawyers can help.
The Gastonia bankruptcy lawyers at Farmer & Morris Law, PLLC, can handle the entirety of the legal process for you. Reach out to schedule a free consultation today.
Farmer & Morris Law, PLLC: Integrity. Experience. Results.
Who Should File for Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is typically filed by individuals or small businesses when financial pressures have become a burden. You do not have to have a specific amount of debt to be eligible to file. It’s important to note, though, that Chapter 7 bankruptcy does have an income eligibility requirement.
If your household income is below the state median for your family size, you automatically meet the income requirement for Chapter 7. If you earn above the median, you may still qualify by passing the Chapter 7 Means Test, which deducts allowed living expenses to calculate your disposable income.
When Are You Not Eligible for Chapter 7 Bankruptcy?
In addition to income eligibility, there are some additional factors that may affect your ability to file for Chapter 7 bankruptcy.
You may be ineligible if you have:
- Committed bankruptcy fraud, such as lying about assets or income
- Had debts discharged in a bankruptcy within the last eight years
- Had a bankruptcy case dismissed in the last 180 days
- Intentionally built up a high amount of debt before filing for bankruptcy
It is essential to be completely honest with all of your documentation when filing bankruptcy.
The Benefits of Filing Chapter 7 Bankruptcy
If you are eligible to file and are under financial stress, then there are some benefits to filing for Chapter 7 bankruptcy, such as:
- Discharging qualifying debts
- Stopping debt collector contact
- Protecting essential assets like your home
However, it’s also important to remember that bankruptcy will hurt your credit in the short term. It may make it harder to obtain credit cards or loans, or you may have a much higher interest rate if approved. Chapter 7 bankruptcy technically stays on your credit report for ten years.
What Debts Cannot Be Discharged in Bankruptcy?
While bankruptcy can give you some relief from financial difficulties, there are some specific debts that typically cannot be discharged.
These include:
- Student loans (with some exceptions)
- Recent taxes
- Alimony
- Child support payments
- Fines or penalties owed to the government
How Can a Chapter 7 Bankruptcy Attorney in Gastonia Help You?
The process of filing for bankruptcy can feel intimidating and stressful. You may be worried about getting everything right and also keeping the assets that are important to you.
Our North Carolina bankruptcy lawyers will help by:
- Ensuring you meet eligibility requirements for Chapter 7 bankruptcy
- Helping gather and prepare necessary documents
- Filing all necessary paperwork, ensuring accuracy and completeness
- Representing you in hearings
- Working to protect your assets
- Ensuring you understand all aspects of the case and what bankruptcy means for you
The team at Farmer & Morris Law, PLLC is available 24/7, so you’ll never feel left in the dark about the progress of your case.
Previous clients have said in our testimonials:
- “Farmer & Morris is a great and experienced company that will help you through your bankruptcy, every step of the way.” –Chyrel D.
- “Wonderful experience with Caleb Farmer handling my bankruptcy case. Easy and painless. Great communicators, you can even text them. Would highly recommend.” –Melissa K.
What Do You Need to File for Chapter 7 Bankruptcy in Gastonia?
Having all of your documents ready to go is vital to a smooth process for your bankruptcy case.
Below are some of the documents you need to have on hand:
- Debts: Be specific and include the amount of each debt, the creditor that you owe, and what type of debt it is (such as a loan or credit card).
- Current income: You have to be accurate here and include all sources of income. For example, if you have a full-time job and occasionally do freelance work, both must be included.
- Assets: Have a complete list of your assets; be clear about anything that is fully paid off (such as a vehicle) versus something that is not (such as the mortgage on your home).
- Monthly living expenses: Carefully compile your needed monthly expenses. For example: rent, utilities, and insurance premiums.
- Tax returns: You should have copies of your most recent tax returns.
Your Gastonia Chapter 7 bankruptcy attorney will let you know whether additional information may be required as well.
Can You Keep Any Assets if You File for Chapter 7 Bankruptcy in Gastonia?
Yes, some assets are generally protected when you file for Chapter 7 bankruptcy. These protected assets typically include:
- Equity in your primary home (up to statutory limits)
- Equity in a primary vehicle (up to statutory limits)
- Household goods, like furniture and clothing
- Personal health items, such as a CPAP device
- Tools needed for work
- Pensions or retirement savings
If you are worried about a specific asset, discuss it with your attorney. Our team will do everything we can to protect your assets from liquidation.
Contact a Chapter 7 Bankruptcy Lawyer in Gastonia Today
If you are struggling under mounting debt or are facing endless calls from debt collectors, bankruptcy may be an option. Reach out to the legal team at Farmer & Morris Law, PLLC, today.
We will listen to your story, explain your options, and guide you through the legal process. Contact us today to schedule a free initial consultation.
