Wake Forest Bankruptcy Lawyer
Paying down unpaid bills is a challenge for anyone, but you’re not alone. More Americans are in debt now than ever before, and many have difficulty making payments.
If you or your family have trouble paying off your debt, consider speaking to the attorneys at Bradford Law Offices, PLLC about filing for bankruptcy. Call us today at (919) 758-8879 for a confidential consultation. We can explain how chapter 7, chapter 11, or chapter 13 bankruptcy can sometimes be the best option for getting your debt under control and not letting it control you. Don’t delay any longer. Call Bradford Law Offices, PLLC today.
How Filing for Bankruptcy Can Help
Bankruptcy is a stigmatized word in the financial world, but if you’re out of options for paying down debt, it can help you in many ways.
Bankruptcy is a legal tool for debtors to discharge, reduce, or reorganize their debts. Depending on the type of bankruptcy, you may have debts discharged entirely, or you may need to formulate a plan to repay your debt over a fixed period.
Declaring bankruptcy can help debtors in the following ways:
- All collection activities are ceased. As soon as you file for bankruptcy, creditors and collection agencies are legally required to cease all collection activities. If they attempt to collect after your filing, they may face a contempt of court charge.
- Your credit score will start to rise. Filing for bankruptcy will negatively affect your credit score, but after the filing is complete and your debts are either discharged, or you’ve begun payments, you can rebuild your credit again. Your credit score may stabilize in as little as two years.
- Debt is drastically reduced. If you’re an individual and choose to file Chapter 7 bankruptcy, many of your unsecured debts can be reduced or discharged entirely. This can include credit cards, personal loans, some tax debts, or medical debt.
- North Carolina allows bankruptcy exemptions. The law allows some debtors to retain partial or total ownership over some belongings in a bankruptcy proceeding. Depending on the type of debt and type of bankruptcy, you may be able to maintain ownership rights for your car, your home, or personal belongings.
How Bankruptcy Filing Works
Chapter 7 bankruptcy is usually the first choice for individuals and small businesses with little or no tangible assets and cannot make payments. In Chapter 7, you ask a federal court to intervene and help with your debt. They will appoint a trustee to oversee the process. You’ll be required to provide paperwork showing your assets and their value, tax forms, income statements, and other information the trustee needs. Depending on the type of debt, the trustee will either liquidate your unsecured assets to help pay down the debt or discharge the debt entirely. It’s important to note that only certain debts can be discharged. Secured loans like car notes or mortgages cannot be discharged in Chapter 7. Child support, alimony, and criminal fines are also not included. The process usually takes less than a year and costs a few hundred dollars in court fees.
Chapter 11 bankruptcy is based on reorganizing your assets and debts and creating a plan to return you to solvency while paying off the debt. Often called reorganization bankruptcy, Chapter 11 is mainly used for business debts. It allows you to keep your business open and to operate while paying off debts, retain control of business assets, and keep your credit score up. Unlike Chapter 7, you take on the role of the court-appointed trustee. You are responsible for creating a plan to pay off your debt and submitting it to a bankruptcy court along with paperwork showing your assets, liabilities, income, and tax information. Chapter 11 is more expensive than Chapter 7 and may take longer to complete.
Chapter 12 bankruptcy is for family farms and family fisherman businesses. This form of bankruptcy enables the family farm or family fisherman business to continue operating while working through an agreed-upon repayment plan for the business’s debts. A Chapter 12 bankruptcy works much like a Chapter 13.
Chapter 13 bankruptcy is for debtors that still can pay off their debts but need assistance in doing so. In Chapter 13, you develop a repayment plan to pay off the debt over three to five years and submit it to a bankruptcy court. Using Chapter 13 has the particular benefit of allowing the debtor to keep control of their secured assets such as their home or car as long as they adhere to their repayment plan. It also allows debtors to consolidate their outstanding debt into one lump sum, which they pay down regularly. This sum is then divided and given to creditors by a bankruptcy trustee. The cost of Chapter 13 bankruptcy filing fees is roughly the same as Chapter 7, but if you file for Chapter 13, no debts are discharged, and you must continue payment.
Why Hire Bradford Law Offices, PLLC for Help With My Bankruptcy?
Hiring an attorney is necessary for bankruptcy proceedings because of the complexity. You must gather a large amount of documentation, submit the correct paperwork, and satisfy the requirements for discharging, reorganizing, or consolidating your debt. This may mean gathering years of tax returns, income statements, copies of bills, credit contracts, and expense reports. Your lawyer will handle all of this for you while you concentrate on getting your life back on track after your bankruptcy is approved.
We’ve been helping North Carolina residents get out from under their debt for 25 years. We’ve helped more than three thousand clients get their lives back through bankruptcy filings. Our firm’s founder, Danny Bradford, has a wealth of experience in bankruptcy and construction law. He’s also a member of the North Carolina Bar Association, Bankruptcy Section, and the National Association of Consumer Bankruptcy Attorneys.
If you’re tired of letting your debt determine your future, call the Wake Forest bankruptcy lawyer at (919) 758-8879 for a confidential, no-obligation consultation. We will discuss your options and whether bankruptcy is the right choice for you. Don’t delay any longer. Call Bradford Law Offices, PLLC today.