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When Can a North Carolina Bankruptcy Case Be Dismissed?

 Posted on April 06, 2023 in Bankruptcy

Gastonia Bankruptcy LawyerThere are many situations where individuals who are in financial distress will need to seek relief from their debts and receive a fresh financial start. This can be done by filing for bankruptcy. However, not all bankruptcy filings automatically lead to successful debt relief. A bankruptcy case can be dismissed if the debtor fails to comply with certain requirements or if the court determines that bankruptcy relief is not the right solution for the debtor's financial situation. By understanding the reasons why a bankruptcy case can be dismissed, debtors can prepare to complete the process successfully. These reasons may include:

Non-Compliance with Filing Requirements

To file for bankruptcy, the debtor must complete and submit a number of forms and provide supporting financial documents. Failure to file all required forms and documents in a timely and accurate fashion may result in the dismissal of the bankruptcy case. Additionally, if the debtor fails to attend the mandatory meeting of creditors (known as the "341 meeting"), the court may dismiss the case.

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How Can I Improve My Credit After Filing for Bankruptcy?

 Posted on March 06, 2023 in Bankruptcy

Gastonia Bankruptcy LawyerFiling for bankruptcy can be a difficult decision. Acknowledging that your debt has gotten out of control and that you need help to get your finances back on track is not always easy. However, bankruptcy can provide you with a truly fresh start. Eliminating your debts, including large credit card bills, medical bills, or other debts that have stacked up because of issues such as the loss of a job, can take away a huge burden and ensure that your family will be able to avoid serious financial problems in the years to come. Part of the fresh start following bankruptcy involves rebuilding your credit, which will help you qualify for loans or other benefits in the future. As you plan for your life after bankruptcy, there are steps you can take to improve your credit score.

Pay Your Bills On Time

One of the most important things you can do to rebuild your credit is to pay all of your bills before the monthly due date. In addition to making monthly payments on any loans you kept following your bankruptcy, such as a home mortgage or auto loan, you may want to set up reminders or automatic payments for other bills, such as utilities. Making prompt payments on a regular basis will show creditors that they can trust you and that you are responsible with money management—two qualities they look for when considering whether or not someone should receive loan approval. On the other hand, any late payments may cause your credit score to decrease further, affecting your ability to build your credit back up.

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5 Common Myths and Misunderstandings About Bankruptcy

 Posted on February 03, 2023 in Bankruptcy

Gastonia Bankruptcy LawyerWith the rising cost of living and high levels of consumer debt, bankruptcy is becoming a more popular option for Americans who are struggling to make ends meet. However, there are still many misunderstandings related to bankruptcy laws and procedures that can lead people to jump to conclusions and make uninformed decisions. In situations involving large debts, you will want to understand your rights and options, and with the help of an experienced bankruptcy attorney, you can take steps to avoid further problems and regain financial stability. Here are some common bankruptcy-related myths and the truth about how issues related to debt may be handled before, during, and after the bankruptcy process:

Myth 1: Bankruptcy Is a Sign of Failure

The truth is that receiving debt relief through bankruptcy is not an indication that you are irresponsible with your finances or that you have failed to properly account for your income, assets, and debts. Most people who pursue bankruptcy do so because of financial issues they have encountered through no fault of their own, such as unexpected medical bills or debts that occurred due to the loss of a job. Bankruptcy offers you the opportunity to get back on track financially. It provides relief from debts you cannot pay and gives you the chance to start fresh. With careful planning, it can be an effective tool in your overall financial strategy and provide much-needed relief in difficult times.

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How Are Mortgage Loans Handled in a Chapter 13 Bankruptcy?

 Posted on January 06, 2023 in Bankruptcy

Gastonia Bankruptcy LawyerFiling for bankruptcy is a big decision, but it can be necessary in order to get back on your feet financially, especially if you have experienced difficulties that have made it impossible to make ongoing payments toward large debts. However, if you are a homeowner, you will likely be looking for solutions that will allow you to avoid foreclosure and keep your home. In many cases, Chapter 13 bankruptcy is the best option, but it is important to understand how mortgage loans will be handled in these types of bankruptcy cases.

What Is a Chapter 13 Bankruptcy?  

A Chapter 13 bankruptcy is also known as “reorganization” because it allows you to reorganize your debts into manageable payments over three to five years. During this period, you will make payments to a court-appointed trustee, who will distribute the payments to different creditors. If all payments are made on time and according to the plan, the remaining unsecured debts may be discharged at the end of the repayment period. Through this method, you can eliminate debts like credit cards and medical bills. Unlike a Chapter 7 bankruptcy, Chapter 13 will not require you to turn over any property that you own, and this may allow you to protect the equity in your home.

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The Means Test: Do I Qualify for Chapter 7 Bankruptcy?

 Posted on December 02, 2022 in Bankruptcy

Huntersville Bankruptcy LawyerPeople with significant debts may qualify for multiple types of debt relief, and in many cases, bankruptcy is the best option. Those who plan to file for bankruptcy will often choose to file under Chapter 7, since this will allow most types of debts to be discharged/eliminated within just a few months. However, debtors will need to meet certain requirements to qualify for debt relief under Chapter 7. One of the most important criteria is the means test, which measures a person’s financial situation to determine whether they have the ability to repay some of their debts.

What Is the Means Test? 

The means test is used to determine if you have enough disposable income left over after paying essential expenses related to housing, food, transportation, etc. By looking at your income and expenses, the means test measures whether you have enough money in your monthly budget to repay at least some of what is owed to your creditors. If not, then you may be eligible for a fresh start through Chapter 7 bankruptcy. Otherwise, you may need to pursue a Chapter 13 bankruptcy or other debt relief options.

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How Will Filing for Bankruptcy Affect a Repossession?

 Posted on November 03, 2022 in Bankruptcy

Huntersville Debt Relief LawyerDebts can be difficult to deal with in any situation, but in some cases, the failure to pay what is owed could result in the repossession of a vehicle or other property. While bankruptcy may be an option if you are struggling with debt, determining how a bankruptcy filing will affect a repossession is not always easy. Will filing for bankruptcy stop a repossession? Will it allow you to recover property that has already been repossessed? By understanding the procedures followed during bankruptcy, you can make sure you follow the correct steps to protect yourself and receive relief from your debts. 

Preventing Repossession Through the Automatic Stay

When you begin the bankruptcy process, an automatic stay will go into effect as soon as your bankruptcy petition is filed. The automatic stay is a court order that blocks creditors from taking any collection actions against you, including repossessing your property. By filing for bankruptcy as soon as you learn that a creditor plans to repossess a vehicle or other property, you can prevent the repossession and determine how to address your outstanding debts. As long as the automatic stay is in place, creditors will be unable to repossess your property. However, a creditor may ask for the automatic stay to be lifted if they believe that they may suffer losses due to the destruction of property, so it is important to move forward with the bankruptcy process and make sure you address your debts correctly with the help of an attorney.

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What Are the Most Common Reasons People File for Bankruptcy?

 Posted on October 04, 2022 in Bankruptcy

Charlotte, NC bankruptcy lawyerThough no one wants to have to file for bankruptcy, it may sometimes be the best option available. Many Americans face situations where debts become overwhelming, and paying back what is owed while also being able to meet a family's ongoing needs may become impossible. Bankruptcy can be the ideal way to receive relief in these situations, and it can often help resolve debt-related issues before they get worse and lead to consequences such as repossession or home foreclosure. By understanding some of the most common reasons people pursue bankruptcy, you can realize that you are not alone and that you have options.

Financial Issues That Often Lead to Bankruptcy

The need for debt relief can arise in a variety of situations, including:

  • Job Loss or Reduction in Income - One of the most common reasons people file for bankruptcy is due to a loss of income. This can come in the form of a job loss or a significant reduction in salary. If you lose your job, it can be difficult to make ends meet, especially if you have a family to support. If you have exhausted all other options, such as borrowing money from friends or family or selling possessions, filing for bankruptcy may be your best option. 

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When Can the Automatic Stay Be Lifted in a Bankruptcy Case?

 Posted on September 03, 2022 in Bankruptcy

ACharlotte bankruptcy attorneylong with the ability to eliminate certain types of debts, one of the key benefits of bankruptcy is the automatic stay. This is an order that is put in place by a bankruptcy court immediately after a debtor files for bankruptcy, and it will force creditors to cease all collection actions during the case. This means that creditors cannot call, email, send letters, or otherwise communicate with a debtor. They cannot proceed with a legal judgment against a debtor, garnish their wages, freeze or seize their bank accounts, repossess a vehicle or other property, or take any other actions in an attempt to collect a debt. Any foreclosure proceedings that have been initiated must be put to a halt.

The automatic stay can provide a debtor with protections and give them some "breathing room" as they address their debts during the bankruptcy process. However, there are some situations where the automatic stay can be lifted. By understanding when a creditor may request an exception to the automatic stay, a debtor can make sure they are prepared to address these issues as they proceed with bankruptcy.

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Should I File for Bankruptcy During My Divorce?

 Posted on August 02, 2022 in Bankruptcy

Charlotte bankruptcy lawyerThe divorce process can cause both spouses to experience financial difficulties. Finding new living arrangements and making adjustments to budgets will usually be necessary, and each spouse will need to determine how they will be able to support themselves on a single income. This process can be even more difficult if a couple has significant debts. In these cases, one or both spouses may be considering filing for bankruptcy, but when doing so, they will need to understand their options and the complications that may arise.

Chapter 7 Vs. Chapter 13 Bankruptcy and Divorce

Decisions about whether to file bankruptcy before, during, or after divorce will often depend on the type of bankruptcy a person or couple plans to pursue. While Chapter 7 bankruptcy will allow most debts to be eliminated, a couple may not qualify for this form of relief if they do not pass the means test because their combined income exceeds the median income in their area. For those who do qualify, completing a Chapter 7 bankruptcy before filing for divorce may be a good solution for addressing joint debts, and it may put both parties in a better financial position as they work to complete the divorce process. Either spouse may also choose to pursue an individual Chapter 7 case after completing their divorce.

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How Much Money Will I Need to Put Toward a Chapter 13 Repayment Plan?

 Posted on July 19, 2022 in Bankruptcy

Gastonia Debt Relief LawyerIf you are considering bankruptcy, you generally have two options. Chapter 7 is often the simpler option, but while it may allow a bankruptcy to be completed and debts to be eliminated within a few months, it may result in the loss of certain assets. If you want to avoid losing property such as your home, or if you are unable to pass the means test allowing you to qualify for Chapter 7, you may opt for Chapter 13 bankruptcy. In this type of bankruptcy, you will put a certain amount each month toward a repayment plan, and your unsecured debts will be discharged once the plan is complete. When planning your Chapter 13 case, it is important to understand how the amount you will pay toward your repayment plan will be determined, as well as how long these payments will last.

Calculating Disposable Income

In a Chapter 13 bankruptcy, you will be required to put your disposable income toward repaying as much of your debts as possible during your repayment plan. Your disposable income is calculated by taking your average monthly income from all sources and subtracting the following deductions:

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