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Bankruptcy FAQ

Do you have questions? Blossom Law PLLC has answers.
  • Q:Is Filing for Bankruptcy a Good Choice?

    A:In some situations, filing for bankruptcy under the U.S. Bankruptcy Code is the best option to protect your financial interests, erase your debt, and give you the chance to start over. If you feel like you are drowning in debt, it is worth speaking with an experienced bankruptcy attorney to find out what your options are.

  • Q:What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?

    A:Under U.S. Bankruptcy Code, there are two types of bankruptcy that an individual can file under: Chapter 7 and Chapter 13. I have extensive experience in handling both types of bankruptcy claims and should we determine that bankruptcy is the right path for you, I can help you decide which of these options best fits your need and goals. The primary differences between Chapter 7 and Chapter 13 include: Chapter 7: While not all types of debt can be cleared under Chapter 7, most credit card debt, medical bills, tax arrears and other consumer debt is eliminated. This type is not available to everyone, and you should speak with a lawyer to find out if you qualify. Chapter 13: Unlike Chapter 7, everyone is qualified to file for Chapter 13 bankruptcy. Under Chapter 13, your debt is consolidated, and you are given a court-supervised three- to five-year repayment plan. All types of debt are included in Chapter.

  • Q:My Creditors Are Harassing Me. Can You Make It Stop?

    A:Under the federal Fair Debt Collection Practices Act (FDCPA), restrictions are placed on creditors and their collection agencies regarding the methods they use to intimidate you into paying. Furthermore, false or inaccurate reporting to Equifax, Experian, TransUnion, or other credit reporting agencies can cause you financial harm, and if this has happened to you, you may have grounds to sue. If creditors are harassing you, it’s important to know that you are not alone. I can help.

  • Q:My Wages Are Being Garnished. Can You Help?

    A:While wage garnishment is a legal action, and many creditors utilize this to secure money owed them, filing for Chapter 7 or Chapter 13 bankruptcy can stop that process. If creditors or collection agencies are garnishing your wages, it is a good idea to speak with an attorney familiar with bankruptcy filing in North Carolina to discuss if this is a good option for you.

  • Q:Is There a Minimum Amount of Debt Required to File Bankruptcy?

    A:No. You can literally file bankruptcy if you have $1 of debt, though no one would ever do that, of course. However, there is a maximum amount of debt that you cannot exceed if you want to file chapter 13. If your debt exceeds that maximum, you will have to file either Chapter 7 or 11, where there are no upper debt limits.

  • Q:Will I Lose My House or Car after Filing for Bankruptcy?

    A:Not unless you want to. That is, you can choose to surrender your house and/or your car. But the reality is that most people want to keep their house and their car. There are exemptions in place that allow most people to keep their homes and cars. However, if the value of your home and/or your car exceeds the amount of the available exemptions, it’s often best to file a chapter 13 case if you want to keep them.

  • Q:Will I Be Able to Keep Any Assets, Including Retirement Accounts?

    A:You will be able to keep most, if not all, of your assets because the law allows you to exempt your assets up to a certain dollar amount. That dollar amount is usually pretty generous. Retirement accounts, as long as they are qualified retirement accounts under the IRS code, are fully exempt.

  • Q:Are Taxes Dischargeable in Bankruptcy?

    A:It depends on the type of tax, when you filed the tax return, when the tax debt was due, and when the IRS (or state) assessed the tax. As tax debt can be complicated, it’s best to meet with an attorney to see whether or not the debt is dischargeable.

  • Q:Are Medical Bills Dischargeable in Bankruptcy?

    A:Yes. Medical bills are quite often the primary reason people file bankruptcy.

  • Q:Are all of my Debts Eliminated in Bankruptcy?

    A:It depends. Most debts are eliminated, but some are not. Some that are not are certain tax debts, spousal and child support obligations, student loans, and mortgages and car loans if you decide to keep your house or car.

  • Q:Am I Able to Add Creditors to my Bankruptcy Schedules After the Case has been Filed?

    A:In the event you mistakenly omit a creditor, you can add them after the case is filed. However, it will cost additional attorney’s fees and court fees. Obviously, the goal is to be as careful as possible to include all your creditors with the initial paperwork.

  • Q:Can I Pick and Choose Which Creditors to File Bankruptcy Against?

    A:No. You must list all your creditors. Failure to list all your creditors can result in a denial of your general discharge, which is the very reason you filed bankruptcy in the first place, or a denial of the discharge of the debt owed to that particular creditor.

  • Q:Can I Obtain Credit after Filing for Bankruptcy?

    A:Yes. In Chapter 7 cases, you can literally obtain credit the next day after filing. For Chapter 13 cases, you simply have to get permission from the trustee or court. But that permission is very often granted, especially if you need to buy a car to get to and from work or have other needs.

  • Q:How Often Can I File Bankruptcy?

    A:You can file Chapter 7 every eight years. If you first filed a Chapter 7 case, you could file a Chapter 13 after four years. If you first filed a Chapter 13 case, you could file another Chapter 13 after only two years, and a Chapter 7 after six years.

  • Q:Does My Spouse Have to File with Me?

    A:No. However, if you have joint debts with your spouse, it may make financial sense for your spouse to file bankruptcy with you.

  • Q:What if I’m an Authorized User of My Spouse’s (or Someone Else’s) Credit Card and I File Bankruptcy?

    A:Since you’re an authorized user, you’re not financially responsible for the debt. So, your bankruptcy filing should not affect the other person’s relationship with the creditor. However, just to be safe, my usual recommendation is to have the accountholder call and have someone who’s about to file bankruptcy removed from the account as an authorized user.

  • Q:Will Everyone Know I Filed for Bankruptcy?

    A:No. Though a bankruptcy filing is public, the reality is that no one will know that you filed for bankruptcy unless they go to the courthouse and ask, they are one of your creditors, they get a copy of your credit report, or you tell them.

  • Q:Will I Be Discriminated Against Because I Filed for Bankruptcy?

    A:In terms of employment, it’s against the law for an employer to discriminate against you solely because you filed bankruptcy. So, an employer can’t terminate you solely for that reason.

  • Q:Will I Lose My Inheritance as a Result of Filing for Bankruptcy?

    A:It depends. Unless covered by an exemption, for a Chapter 7 case, if you become entitled to inherit property within 180 days of filing bankruptcy, your inheritance could be distributed to your creditors. For Chapter 13 cases, the 180-day limit doesn’t apply such that any property inherited during the course of the Chapter 13 case could be distributed to creditors.

  • Q:What Happens to My Tax Refunds?

    A:If you have enough room under the exemption cap, you can keep your tax refunds. Any amounts in excess of the exemption cap can be seized.

  • Q:Does Filing for Bankruptcy Keep My Utilities from Being Disconnected?

    A:Yes. However, you often will have to come up with a deposit for a new account.

  • Q:What Happens to My Student Loan Debt?

    A:Student loan dent generally survives a bankruptcy discharge unless the court grants you a hardship discharge. This very rarely happens and is quite expensive to pursue because it requires the filing of a lawsuit against your student loan creditor.

  • Q:Want to Learn More? Schedule a Free Bankruptcy Consultation with Me Today

    A:I come from a blue-collar, middle-class background and I am no stranger to financial struggles. I know how hard it is to work tirelessly and still feel like financial security is out of reach. I believe everyone deserves the chance to prosper and I am committed to helping my clients across North Carolina get the dedicated, compassionate legal representation they deserve. If you are struggling with debt, there is hope. To learn more about my debt relief services and bankruptcy services, call Blossom Law PLLC at (704) 271-9078.

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