Do you want to:
- Save your home from foreclosure?
- Stop bill collectors from calling you?
- Get your debt under control with a repayment plan?
- Get relief from debt you simply cannot afford to pay?
What you should know about Bankruptcy.
Bankruptcy is a set of federal laws that offers powerful remedies. In appropriate cases you can do the following:
- Stop a foreclosure of your residence and ‘catch up’ the payments you have missed through a Chapter 13 repayment plan.
- Stop the repossession of your motor vehicle and ‘catch up’ the missed payments through a Chapter 13 repayment plan.
- Consolidate your debts into one monthly repayment plan through a Chapter 13 bankruptcy.
- In appropriate Chapter 13 cases, eliminate the second mortgage, where it completely exceeds equity in the property.
- Stop most collection actions and lawsuits. One big exception to this rule is child support and alimony actions.
- Stop your creditors from calling you and taking other actions to collect debts.
- Eliminate credit card debt in most Chapter 7 bankruptcies. In a Chapter 13 bankruptcy, what you pay back on your credit cards depends upon your income and your assets.
- Give you a fresh start, and allow you to start rebuilding your credit after your bankruptcy.
- In a Chapter 13 bankruptcy, the process of living with a repayment plan can teach you the important skills of managing and budgeting your money.
Is Bankruptcy the Right Solution for me?
Just as no two people have exactly the same financial profile, no two people have the same bankruptcy case. Every case is different and your attorney should consider your personal circumstances to determine the best remedy for you.
Because of the complexity of bankruptcy laws, it is simply impossible to give a quick answer to the question, “Should I file for bankruptcy?” For that reason, and because I am required by law to provide you with written disclosures, it is not possible for me to give telephone or email consultations. I would be doing you a disservice if I did that.
If you are considering bankruptcy or would simply like more information, please contact my office for a consultation. There is no charge for bankruptcy consultations. You will meet with Mercedes Chut and you will receive a personal, thorough consultation. It is possible that bankruptcy is not the best solution for you. We will explore all potential solutions to your problems and not just bankruptcy. For example, you may be able to negotiate with your creditors and enter into a manageable repayment plan that does not involve bankruptcy. If that solution is an option for you, we could assist you in that process.
Can I do anything if I owe more on my mortgage than my home is worth?
The Bankruptcy Code allows the Court to modify many types of agreements with lenders for secured debt, but it does not allow the Court to modify the mortgage on your personal residence. However, there is a big exception to that rule. If you have a second mortgage or equity line that is completely unsecured, it can be “stripped” off in a Chapter 13 bankruptcy. Completely unsecured means that your home is worth no more than the balance on your first mortgage.
What if I have judgment liens on my home?
Chapter 7 and Chapter 13 are the most commonly used forms of bankruptcies for individual consumers. Chapter 7 results in a discharge and elimination of many debts while Chapter 13 involves a monthly repayment plan of 3 to 5 years. You can also view the website www.ncmb.uscourts.gov for the middle district of North Carolina to learn extensively about Chapters 7 and 13.
What if I have judgment liens on my home?
In appropriate cases, judgment liens can be “avoided’ or cancelled in both a Chapter 7 and Chapter 13 bankruptcy.
What if the IRS is garnishing my wages or levying on my bank accounts?
Both the Chapter 7 and Chapter 13 bankruptcy filings will stop IRS collections initially. However, only the Chapter 13 bankruptcy will allow you to repay the taxes owed through your Chapter 13 plan without fear of garnishment or levy.
What is Chapter 7; What is Chapter 13?
Chapter 7 and Chapter 13 are the two most commonly used forms of bankruptcies for individual consumers. Chapter 7 bankruptcy results in a “discharge” or elimination of many types of debts. A Chapter 13 bankruptcy results in a monthly repayment plan that lasts three to five years. In the Chapter 13 bankruptcy, you will make a monthly payment to your Chapter 13 Trustee, who will then disburse your money to your creditors as specified in your Court-approved plan.
There are many differences between Chapter 13 and Chapter 7. This website includes a notice required by the Bankruptcy Court that explains the four Chapters of the Bankruptcy Code available to individual consumer debtors. You may also go to the website of the Bankruptcy Court, www.ncmb.uscourts.gov for the Middle District of North Carolina to obtain more extensive information about Chapters 7 and 13.