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If you have a higher amount of debt than you can manage, our bankruptcy lawyers in Forest City can advise you of your debt relief options, including debt settlement.
At Farmer & Morris Law, PLLC, we have helped over 10,000 clients through some of the most difficult periods in their lives. After reviewing your case, our North Carolina bankruptcy lawyers will explain how the U.S. Bankruptcy Code applies to your situation.
Call today to schedule a confidential consultation.
How Our Forest City Bankruptcy Lawyer Will Help You
Filing for bankruptcy is a challenging process, so you will need time and patience as you go through it. We will be by your side during this time to explain every step and ensure you understand what it means for you and your family.
Our team represents individuals and small businesses with Chapter 7 and Chapter 13 in Forest City. We also assist with Chapter 11 reorganization bankruptcy and help family farmers file for Chapter 12 bankruptcy.
When we meet with you during your free consultation, we will go over your situation to determine your next steps. If our attorneys can help, you will become our client, and from there, we will manage your entire case.
A bankruptcy attorney in Forest City from our team will:
- Ensure you know your rights during the process
- Explain how we protect your rights and work to protect your assets
- Confirm you meet the requirements for filing
- Develop a strategy that addresses your situation
- Gather required proof of your finances, including your assets
- Manage your case, keeping you on track to meet critical deadlines
- Prepare the forms you need and submit them on time
- Represent you in hearings and present your case
- Advise you on all matters, including how to protect your assets and money
- Build a strategy for foreclosure defense
We will update you regularly on your case’s status and explain any developments. If the case is rejected during a hearing, we will advocate for you. We will also advise you and answer all your questions and concerns.
The Benefits of Declaring Bankruptcy
Bankruptcy allows you to either discharge your debts or create a plan to pay your creditors back.
Filing it temporarily suspends creditors’ debt collection attempts, which can include bills and debts such as:
- Wage garnishment
- Foreclosure actions
- Car payments and repossessions
- Utility bills
- Civil judgments
- Installment payments or contracts
Chapter 7 Bankruptcy
Many cases are Chapter 7 total discharge filings. This option is common among individuals, small business owners, and corporations. After our bankruptcy attorney in Forest City reviews your assets and debts, we will discuss whether you have any nonexempt property that a trustee can liquidate.
Any money earned through liquidation of nonexempt assets is distributed to your creditors. However, most people filing Chapter 7 bankruptcy can retain all their assets.
Federal bankruptcy law requires most individuals to complete a credit counseling course before filing. This requirement helps you understand your financial situation.
Types of Debt That Can Be Eliminated
Examples of debts that can be discharged in Chapter 7 bankruptcy cases include:
- Deficiency balances after a repossession
- Most civil judgments
- Credit card debt
- Medical bills
- Loans, including installment contract debts
- Utility bills
- Other consumer debts
Some debts can be reaffirmed during the Chapter 7 process. You could continue paying on a car loan with the court’s permission.
Non-Dischargeable Debts
Although Chapter 7 bankruptcy discharges many debts, certain debts are almost always non-dischargeable, such as:
- Alimony, child support, and other domestic support obligations
- Property taxes
- Income taxes
- Student loans
- Court costs, fines, and restitution
- Some debts incurred within 90 days before your filing
While student loans are generally more difficult to eliminate than other types of debt, bankruptcy may still provide relief in certain circumstances.
Immediately after filing Chapter 7 bankruptcy and while the case is pending, creditors are barred from attempting to collect debts without the court’s permission. However, creditors can contest whether a debt is dischargeable. A Forest City bankruptcy attorney from our team will protect your rights.
Chapter 11 Bankruptcy
Companies of all sizes can file for Chapter 11 bankruptcy to reorganize their businesses and repay undischarged debt. This option allows them to repay the debts partially without losing their assets.
You may be able to file for Chapter 11 if:
- You own an LLC, a corporation, or another kind of business.
- You have fallen behind on your debt payments.
- You can develop and commit to a debt repayment plan.
Chapter 11 has its benefits and drawbacks, and we will review both with you. Cost is a consideration with this option, so this is something to think about as you consider it.
Larger businesses can usually pay these costs. However, per the U.S. Courts, two special categories allow small businesses to file for relief under Chapter 11.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy also allows you to reorganize and create a payment plan to resolve your debts with creditors while offering particular advantages over Chapter 7 in certain scenarios.
Chapter 13 filings allow you to exempt some property and keep some nonexempt property. To retain nonexempt property, you must pay the property’s value; the value will become part of your payment plan.
A bankruptcy filing will appear on your credit report for a period established by federal law and credit reporting practices. In general, a Chapter 13 may remain for up to seven years. However, the presence of a bankruptcy on your credit report does not prevent you from rebuilding your credit.
Reorganizing Secured Debts
Chapter 13 can restructure some of your secured debts, such as vehicle loans, meaning you may be able to decrease your interest rate or total payout. During a Chapter 13 filing, you must show you can meet your payment obligations. As such, having a steady income improves your chances of having your Chapter 13 plan approved.
A Chapter 13 repayment plan typically lasts three to five years, depending on the details of your plan. If you cannot adhere to your payment plan, you may be able to transition to a Chapter 7 case.
Chapter 12 Bankruptcy
North Carolina family farmers and fishermen can also seek bankruptcy protection under Chapter 12. Those who seek Chapter 12 protections must meet certain income guidelines. They must also agree to repay their debts during a specific time, usually between three and five years.
Per the U.S. Courts’ guidance, this chapter clears some of the hurdles other protections present and makes it easier for family farmers and fishermen to file.
While bankruptcy may initially lower your credit score, the long-term impact depends on your overall financial situation and how you manage your credit after your case is complete.
What You Need to Know About Exempt Property
Bankruptcy prevents your exempt property from being repossessed or forcibly sold to pay off most creditors.
Under N.C. Gen. Stat. § 1C-1601 and 11 U.S.C. § 522(a)(3)(C), North Carolina individuals can claim the following as exempt property during bankruptcy:
- Up to $35,000 in equity in your home
- Up to $3,500 in equity in a motor vehicle
- Up to $5,000 worth of household goods, furnishings, and related household items
- The cash value of certain life insurance policies
- Tax-exempt retirement accounts
There are additional assets that you can claim as exempt, which is why you may want to consult with a lawyer before you file. The exemptions you choose dictate what assets and personal property you can retain following a Chapter 7 or Chapter 13 case.
Contact Our Forest City Bankruptcy Attorneys to Discuss Your Case
Our lawyers advise you about which options are best for you. Our firm manages bankruptcy cases under Chapters 7, 13, 11, and 12. We encourage you to file for protection as soon as you can. The sooner you reach out to us, the sooner we can start working on your behalf.
Financial freedom does not necessarily mean being debt-free overnight. For many people, it means gaining control of their finances. Let us help. Our law firm will also review alternative options, such as debt settlement.
Call Farmer & Morris Law, PLLC, for a free consultation and speak with a team member today.
