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When life’s events leave you with overwhelming debt and an underwhelming paycheck, a Newton bankruptcy lawyer from Farmer & Morris Law, PLLC can help. Although no one likes the thought of filing for bankruptcy, it can offer you the fresh start you need.
Our bankruptcy team understands the intricacies of financial laws and the emotions involved with starting over. Contact the Newton bankruptcy team at Farmer & Morris Law, PLLC for a free case evaluation to determine if bankruptcy is a good choice for you. Our team will offer honest answers to your questions.
How a Newton Bankruptcy Lawyer Can Help
When you discuss your case with our team, we will offer solutions and assist you in filing for bankruptcy. Our team will:
- Help you understand your debts
- Explore past and current creditors
- Determine your level of debt
- Analyze your income
- Evaluate your real estate and personal property holdings
- Determine which debts are dischargeable
- Examine your property to determine exemptions, such as your vehicle
- Help you understand the different types of bankruptcy
- Determine which Chapter you can file under
- Complete paperwork correctly and file promptly to meet deadlines
- Remain in compliance with North Carolina legal requirements
- Abide by all bankruptcy court rules
- Consider your tax status
- Negotiate your debts if applicable
- Advocate on your behalf toward a favorable resolution
Whether you are filing as an individual or a business owner, our bankruptcy team can help you through this stressful time. When you are struggling with debt that you cannot reasonably dissolve with your income level, a Newton bankruptcy attorney can help. Our team can develop your legal filing and help you with a plan to keep debt from creeping up and overwhelming you again.
There Are Three Main Types of Bankruptcy
Not all people qualify to discharge their debt via bankruptcy. Our team will evaluate your assets and recommend which Chapter you best qualify under. There are six Chapters under the bankruptcy codes, but three primary Chapters for individual filers:
- Chapter 7
- Chapter 11
- Chapter 13
Our firm can also handle filings under Chapter 12, which is dedicated to farmers and fishermen and helps them to formulate a structured debt payment plan. We’ll explain the different Chapters here, but a Newton bankruptcy attorney can add more detail and discuss each option regarding your circumstances.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy permits individuals and owners of small businesses to erase almost all their debt while retaining many of their assets. Chapter 7, also known as liquidation bankruptcy, allows a fresh start. You might need to sell some of your non-exempt assets to pay off part of your debts, but this plan typically enables you to retain furnishings, your vehicle, and in many cases, your home.
This Chapter requires that your income level be low enough that you cannot pay off any of your debt. Those with a higher income level may be required to file under Chapter 13. Businesses are also permitted to file under Chapter 7 in some cases.
Chapter 11 Bankruptcy
Chapter 11, typically used for business filings, reorganizes debts and creates a manageable debt relief plan for your business. Chapter 11 allows you to continue operating your business while you satisfy your creditors over a more extended payment period.
Under the debt relief plan, you must create a plan for repayment and present it to your creditors. You retain control over your company while reorganizing and paying off your debt. Sometimes, it might be necessary to liquidate some of your assets, but the ultimate goal of Chapter 11 is to restructure and rebuild your business to a profitable status.
Chapter 13 Bankruptcy
Known as a “wage earner’s plan,” Chapter 13 helps ease some debt while permitting the reorganization of the remaining debt. For people who don’t qualify under Chapter 7, Chapter 13 might be suitable. It helps those with an income stream higher than basic living but not high enough to pay down their current debt load.
Using Chapter 13, our bankruptcy team works to consolidate your debts to create one monthly payment to lower your expenses. It might be necessary to liquidate some assets, but you can maintain more of your assets with restructuring.
Bankruptcy Offers a Fresh Start
Bankruptcy in any form can offer you the ability to get a fresh start when financial obligations grow faster than your earnings. Our team will evaluate your current financial burdens and determine how best to alleviate your debt while maintaining as many assets as possible.
In many cases, the debts that can be reduced or eliminated during bankruptcy can include the following:
- Personal loans, secured and unsecured
- Outstanding utility bills
- Credit card debt
- Medical bills
Several types of bills cannot be discharged during bankruptcy. Consulting with a Newton bankruptcy lawyer can help determine where you would benefit.
Can Medical Debt be Discharged?
In most cases, medical debt is an unsecured debt. With privatized insurance, medical debt can accumulate quickly with one catastrophic illness. You may not be able to relieve all medical debt with bankruptcy. However, you can reduce the amount you owe to a more reasonable level depending on which Chapter you can file under.
Consult with a bankruptcy attorney for assistance in determining what portion of your medical debts might be dischargeable.
Bankruptcy Can Assist With Collections Calls
Debt collectors can be ruthless in pursuing you for unpaid bills. Regardless of how you accumulated debt, receiving never-ending calls can seem like harassment and bullying by collection agencies. In North Carolina, G.S. § 75-55 contains provisions governing how debt collectors can perform their duties.
A bankruptcy filing can assist with the barrage of calls because creditors cannot contact you once you file. Other areas where filing can help include:
- Stopping active foreclosure on your property
- Removing wage garnishments
- Avoiding vehicle repossession actions
Our bankruptcy team can explore the benefits you might receive. It can be helpful to consult with them if you face overwhelming debt. Where you see no way out, we might see a door where opportunity is knocking.
Understanding the Bankruptcy Process
To file for bankruptcy, you must examine all your debt, past and present spending habits, and plans for the future. While you can file without an attorney’s assistance, finding a firm that specializes in bankruptcy is beneficial. We are aware of changing laws regarding filing requirements, have years of experience, and already know what the court expects. We can organize your case to obtain the most relief possible.
Our attorney can help you meet the requirements for financial training by recommending courses. Our team will help you compile a complete listing of your debt and represent you at all hearings. After your hearing, we can provide information and resources to give you greater financial awareness to avoid future debt problems. The initial consultation is free.
Farmer & Morris Law, PLLC Offers a Free Bankruptcy Consultation
If you are still determining if bankruptcy is the right path, our Newton bankruptcy lawyer can explain the benefits and any pitfalls. The Farmer & Morris Law, PLLC team will take the time to understand your debt and recommend the best course of action. Whether you are ready to file or need the information to decide, contact our team for your free case evaluation.
