When you have more debt than you can handle, it can take over your whole life and rob you of your peace of mind. Chapter 7 bankruptcy is one way to discharge eligible debts, give yourself a fresh start, and work toward a more secure financial future. Unlike Chapter 13 bankruptcy, there is no 'payment plan' in Chapter 7. Instead, your debts are simply 'wiped out' upon receiving a discharge. The Chapter 7 bankruptcy process in North Carolina is relatively straightforward for individuals with modest income and assets, and we explain it in this blog.
Are You Eligible?
The court system uses a means test to determine whether or not an individual qualifies for Chapter 7 bankruptcy. The means test analyzes your income and compares it to the state median income. If your income is above the median, you may still file Chapter 7 if you are unable to pay at least $6,000 over the next five years to your creditors. If you can afford more than $6,000 but less than $10,000, you may qualify if you are unable to pay at least 25% of your unsecured debt. A bankruptcy attorney can help you sort this out.
...