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Major life events, such as a medical problem, divorce, or unemployment, can make it difficult to pay off your debts. Many companies and individuals file under various bankruptcy chapters each year to protect their assets. A Spindale bankruptcy lawyer from our team at Farmer & Morris Law, PLLC, can help in this situation.
Bankruptcy allows you to discharge certain debts, which can protect your assets from creditors and allow you to receive a fresh financial start. There are several bankruptcy chapters you can file under.
You can discuss your legal options with a North Carolina bankruptcy lawyer. We offer free initial consultations to help prospective clients understand the road ahead and how we can help. We’ve helped over 10,000 clients, and we’re ready to offer the personalized support you deserve.
Why Choose a Spindale Bankruptcy Lawyer from Our Team?
At Farmer & Morris Law, PLLC, we offer a range of legal services that could help with your situation. If you are filing for bankruptcy protection because of an repossession, foreclosure, or civil judgment, we may be able to stop the process. Filing for bankruptcy may immediately stop many creditor collection efforts through an automatic stay.
Services We Provide to Clients Filing for Bankruptcy
The team at Farmer & Morris Law, PLLC, can complete a bankruptcy filing by using copies of your income statements, bank statements, bills, and credit reports. Depending on your situation, you can choose to file for discharge or reorganization.
Our lawyer will also:
- Ensure that you have information about the options available to you
- Protect your legal rights during the bankruptcy filing process
- Give you information about the Federal Bankruptcy Code
- Help with pre-bankruptcy planning
- Help you find or create a financial strategy that works for you
- Inform you about what’s required to file for bankruptcy and ensure that you meet those requirements (such as getting credit counseling before you file)
- Explain secured debts vs. unsecured debts
- Assess if you qualify for an automatic stay
- Determine when it is the best time for you to file for debt relief
- Ensure all bankruptcy forms and filings are completed correctly
- Provide guidance and representation for court hearings
- Help you handle asset protection
The bankruptcy process is complex and involves strict filing deadlines. Our firm will keep you on track to ensure you meet those deadlines. We will also review your financial circumstances and offer counsel on which bankruptcy plan could work for you.
Our team would be glad to answer any questions you have during a free consultation. We’re here to help with all legal matters.
Who Can Seek Bankruptcy Protection?
Businesses and individuals who are unable to pay their debts for the foreseeable future can seek bankruptcy protection. This federal process gives them a fresh start and an opportunity to develop a financial strategy to get them back on their feet.
Bankruptcy can reduce, restructure, or eliminate outstanding debts, potentially including credit card debt, so for many people, filing for protection is worth pursuing.
All bankruptcy cases are handled in a federal court. However, North Carolina’s exemptions, as outlined in G.S. § 1C-1601, primarily determine what property you get to keep once you have protection under bankruptcy laws.
Bankruptcy Chapters You Can File Under
Our legal team represents individuals and businesses filing under Chapter 7 and Chapter 13 bankruptcy. We can also help those who are filing under Chapter 11 reorganization bankruptcy and Chapter 12 if they are considered a family farmer.
When you work with us, our goal is to protect your assets and help you regain financial stability to the extent permitted by law.
We have listed specific details that may pertain to your situation below:
Filing for Chapter 7 Bankruptcy
Also known as a zero-asset filing, a Chapter 7 bankruptcy is an individual filing that occurs when you do not have any assets to distribute to creditors and are unable to pay them. Simply put, your debt far exceeds your income and personal assets. Once you complete the Chapter 7 bankruptcy process, your debts are discharged, meaning that creditors are not allowed to collect them. However, not all debts can be discharged in bankruptcy.
According to information provided by the U.S. Courts, examples of non-dischargeable debts include:
- Child support and alimony payments
- Court fines and restitution
- Some types of debts owed to the government, such as property and income taxes
- Student loans may not be automatically discharged
- Personal injury debts or judgments, if caused by the debtor driving while intoxicated
Most individuals who file for bankruptcy experienced a major life event that caused sudden financial problems, which is why bankruptcy is structured to provide you with a fresh start following a discharge. A bankruptcy attorney in Spindale can tell you more.
Filing for Chapter 13 Bankruptcy
Debtors who can pay something back to their creditors but need time to restructure their finances can file a Chapter 13 bankruptcy petition.
Instead of completely discharging your debts, this type of bankruptcy allows you to reorganize your finances so that you can more easily pay some of your creditors, meaning you can set up new and more affordable payment arrangements with them.
Some of your debts will be discharged in the process. Our lawyer can advise you of which debts qualify. You will have several meetings and hearings during your bankruptcy filing, as the trustee will evaluate your progress and recommend revisions to your plan if necessary. You will create a monthly payment plan with the bankruptcy court.
We Can Negotiate for Lower Interest Rates, Debt Reduction
To file under Chapter 13, you:
- Cannot exceed certain debt limits
- Must be an individual (not a business)
- Must have enough income to pay your bills and payment plan obligations
Having a steady job or regular income improves your chances of having your plan approved.
Our team can negotiate lower interest rates or reduced debt with creditors, meaning that if you have a car loan, your bankruptcy attorney and the creditor can agree on a different payment plan, payoff amount, or interest rate.
Filing for Chapter 11 Bankruptcy
Similar to Chapter 13 bankruptcy, you may get the ability to pay off your creditors through a repayment plan. However, before you can implement any strategies, your creditors and the court system must approve the plan. Without legal assistance, this can prove to be a lengthy and complicated process.
When you work with our legal team, we can examine your finances, handle communications with your creditors, and take actions to protect your assets. In some situations, according to the U.S. Courts, your Chapter 11 case could be converted into a Chapter 7 case.
To learn more about what this entails and how legal representation from our firm could help, we can meet with you for a free, no-obligation case evaluation.
Filing for Chapter 12 Bankruptcy
Filing under this chapter is designed to meet the economic hardships that family farmers or fishermen face. If this form of bankruptcy is relevant to your situation, you will generally have to come up with a payment plan to pay your creditors.
As the North Carolina Bar Association explains, you usually have anywhere from three to five years to accomplish this goal. This action plan, which you will make with help from our lawyer and the trustee overseeing your case, will help you pay off your debts while also providing for yourself and your family.
What Happens After You File for Bankruptcy?
A bankruptcy filing will show up on your credit report and have implications on your ability to qualify for loans, housing, and other financial opportunities. While filing for bankruptcy can seem like a discouraging experience, it can provide an opportunity for you to discharge your debts and get a fresh start.
North Carolina places restrictions on how many times you can file for bankruptcy in a given time span. Our bankruptcy lawyer in Spindale, who has handled bankruptcy cases, can explain in more detail what implications certain deadlines can have on your case.
Call Farmer & Morris Law, PLLC, Today
Losing a job or experiencing a serious medical problem can lead to financial distress, which may make filing for bankruptcy a pragmatic decision. At Farmer & Morris Law, PLLC, we understand what a stressful time this likely is for you and your family.
We offer a free consultation, during which you will have the opportunity to share the details of your situation with us. Contact us now to get help from a Spindale bankruptcy attorney.
