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If you are overwhelmed by debt in Lincolnton, North Carolina, our North Carolina bankruptcy lawyer team will help you understand the bankruptcy filing process. We will explain the benefits and make you aware of any tax and credit consequences of filing. Our team will also give your case the attention to detail it deserves, calculate your income and debts, and notify your creditors of your filing status.
At Farmer & Morris Law, PLLC, our Lincolnton bankruptcy lawyer will help you understand the bankruptcy system. A member of our team will be with you at all hearings and court appearances. We will also help you understand and comply with any required credit counseling and means testing. When you choose our firm, we will manage your case from the start to the final disposition. Call today for a free case consultation.
Filing for Bankruptcy Can Provide a Fresh Financial Start
Bankruptcy is a legal process that exists to give those facing economic challenges a fresh new path. Many financial circumstances can create a need for bankruptcy relief, including:
- Health care expenses
- Loss of employment and income
- Credit card debt
- Divorce
- Unanticipated expenses, such as property damage or loss
These can all create overwhelming debt. By eliminating or reorganizing your debt load through bankruptcy, you can get a new financial start.
Another primary benefit of filing for bankruptcy is the relief it provides from debt collection activities. When you choose bankruptcy, you get an automatic stay that, according to 11 USC § 362, stops all creditors from making any further demands for payment. Your automatic stay will start immediately, which means you do not have to complete the bankruptcy process or receive a final resolution in your case before enjoying its benefits.
Determining Your Best Options for Bankruptcy
There are multiple bankruptcy chapters to choose from, and not all will apply to your circumstances. Determining the right chapter for you is just one way the bankruptcy attorneys from our firm can help you find a path to debt relief.
Among the more common options are Chapters 7, 11, 12, and 13. Each involves specific conditions that may apply to individuals, to businesses, or to both.
There is no one-size-fits-all plan when it comes to bankruptcy. The different Chapters are designed to streamline the process so that it addresses your specific needs. Our team can review your case and help you determine which of the following suits your needs.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy can be filed by individuals or businesses. Two key components of a Chapter 7 bankruptcy are:
- Unsecured debts: These debts are not tied to any physical property or asset and may include such things as medical debt, personal loans, credit card debt, and private student loans
- Nonexempt assets: These are items that are not protected and may be sold or liquidated in order to pay off debts. They include such things as secondary homes, expensive cars, art and collections, stocks, bonds, and business assets.
Under Chapter 7, the law generally forgives unsecured debts and allows individuals to keep certain types of property up to a certain value. This can include items like those necessary for employment and a personal vehicle.
Meanwhile, if you have nonexempt assets, the court may require you to liquidate them in Chapter 7. The profit from selling these items is then applied to outstanding debts. However, most people who file for bankruptcy under Chapter 7 have limited or no nonexempt assets.
In most cases, people who qualify to file for Chapter 7 bankruptcy can retain all their assets since most do not have any nonexempt assets, and most qualifying debts are discharged.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is a reorganization bankruptcy most commonly used by businesses. It involves reorganizing the business and creating a plan to generate revenue without burdensome debt. Chapter 11 is an attractive option for businesses because they are generally allowed to remain open and operating with court supervision.
Since this chapter is often considered the most complicated to file under, our team will take the time to walk you through each aspect of the process and handle all case-related communication for you.
Chapter 12 Bankruptcy
Family farmers and fishermen facing overwhelming debt can seek protection under Chapter 12 bankruptcy. This option gives qualifying filers the chance to reorganize their current debt. Our team will work with you to create a realistic and workable debt repayment plan over the next three to five years.
Chapter 13 Bankruptcy
Also referred to as a wage-earner’s plan, Chapter 13 bankruptcy is an option for those who make too much money to file under Chapter 7. Individual and business filers with a regular income stream can reorganize their debt and create a subsequent payment plan.
As with Chapter 7, filing under Chapter 13 will also subject you to an income test, which could impact how much you may be required to repay to creditors. Our team will help you handle this complicated test and complete the necessary forms.
Debts You Can Discharge in Bankruptcy
The biggest benefit of bankruptcy is its ability to free you from insurmountable debt and the accompanying stress, frustration, and anxiety. At Farmer & Morris Law, PLLC, our lawyers help both individuals and business owners file for bankruptcy.
The debts that can be discharged or eliminated will vary from filer to filer. In general, you could discharge your:
- Secured debts: These debts have collateral attached to them, such as a home, car, jewelry, or cash deposit, which a lender can legally seize via a lien if the borrower fails to make payments. As such, they include such things as mortgages, auto loans, and secured credit cards.
- Unsecured debts: As mentioned above, these are debts not tied to any physical collateral.
- Priority debts: Due to the consequences of not paying these off, these are debts to be paid off first in bankruptcy proceedings. These debts are typically associated with a loss of the home (mortgage) or the possibility of imprisonment (tax arrears).
When our bankruptcy lawyer represents you in Lincolnton, we carefully review your debt load, creditors, and income to assess your dischargeable debts. The goal is to ensure you can eliminate all valid debt and move forward.
Assets You Can Retain in Bankruptcy
Many people are afraid to seek the protection of bankruptcy for fear of losing real and personal property. Depending on the chapter you choose, you may be able to retain many, if not all, of your assets, including your:
- Vehicle
- Clothing
- Household items
- Jewelry
- Home
- Government benefits
- Personal injury or other legal damage awards
You do not have to identify the retainable property on your own. Our bankruptcy lawyer will create a detailed list of your belongings and help you understand which ones are protected when you file.
Our Bankruptcy Attorney Will Advocate for You
When you trust our bankruptcy law firm with your case, we put our familiarity with state and federal law to work for you. Our team also understands the complex bankruptcy process, and with our legal services, we will:
- Compile and organize your information
- Determine the right type of bankruptcy chapter for you
- Represent you in bankruptcy court
- Ensure your creditors are notified
It is important to address all aspects of your finances as we prepare your case. Hiding assets during your bankruptcy proceedings is often considered by the courts as bankruptcy fraud, which is a serious crime with equally serious charges and outcomes.
We will prepare every aspect of your case and ensure it meets all state and federal legal requirements. We also make sure you receive regular updates on the progress of your case.
We Work Hard for Our Clients
On our testimonials page, you will find reviews and referrals from clients we helped get a new financial start. For example, some previous clients say:
- “I’m so glad I went to these guys for help! They were on it! They helped me resolve my issue. I should have [gone] to them sooner. I appreciate… all the hard work.” – Russell Mitchell
- “(Attorney) Caleb Farmer is a good and knowledgeable bankruptcy lawyer. When he meets you face to face for the initial consultation he lets you know what to expect during the bankruptcy. Ann Doty is a great and knowledgeable bankruptcy paralegal. When she meets with the bankruptcy client she to will let the bankruptcy client know what all they need and what to expect. We would recommend Farmer and Morris Law. Our experience was good.” — Brian Hopkins
Bankruptcy can give you financial freedom and peace of mind. We never stop fighting for a second chance for our clients—and that includes you.
Discuss Filing for Bankruptcy in Lincolnton Today
If you are dealing with significant financial stress, you are not alone. According to the United States Courts website, there were 504,112 bankruptcy filings in 2024, a 16.2 percent rise from the previous 433,658 filed in 2023.
