North Carolina Bankruptcy Defense Lawyers
Introduction
Facing overwhelming debt can feel like you’re drowning in a sea of bills, collection calls, and financial stress. At Delancey Street, we understand the emotional and financial toll that debt can take on you and your family. That’s why we’re here to help you navigate the complex world of bankruptcy law in North Carolina. With our experienced team of bankruptcy defense lawyers, we can provide you with the guidance and support you need to regain control of your financial future.
Understanding Bankruptcy in North Carolina
Bankruptcy is often misunderstood and stigmatized. Many people believe that filing for bankruptcy is an admission of failure or irresponsibility. However, the reality is that bankruptcy can be a powerful tool for individuals and businesses facing insurmountable debt. It offers a legal way to eliminate or restructure your debts, giving you a fresh start.
Types of Bankruptcy
In North Carolina, individuals and businesses can file for different types of bankruptcy, each with its own set of rules and benefits:
- Chapter 7 Bankruptcy: Often referred to as “liquidation bankruptcy,” Chapter 7 allows you to discharge most of your unsecured debts, such as credit card debt and medical bills. This type of bankruptcy is suitable for individuals with limited income and few assets.
- Chapter 13 Bankruptcy: Known as “reorganization bankruptcy,” Chapter 13 allows you to keep your property while repaying your debts over a three to five-year period. This option is ideal for individuals with a regular income who can afford to make monthly payments.
- Chapter 11 Bankruptcy: Primarily used by businesses, Chapter 11 allows for the reorganization of debts while continuing operations. It provides a way for businesses to restructure their finances and emerge stronger.
- Chapter 12 Bankruptcy: Specifically designed for family farmers and fishermen, Chapter 12 offers a way to restructure debts and continue operations.
Benefits of Filing for Bankruptcy
Filing for bankruptcy can provide numerous benefits, including:
- Automatic Stay: Once you file for bankruptcy, an automatic stay goes into effect, halting all collection activities, including foreclosure, wage garnishment, and creditor lawsuits.
- Debt Discharge: Bankruptcy allows for the discharge of most unsecured debts, giving you a clean slate to rebuild your financial future.
- Asset Protection: North Carolina law provides various exemptions that protect your assets, such as your home, vehicle, and retirement accounts, from being seized by creditors.
- Credit Score Improvement: While bankruptcy will initially lower your credit score, it can also provide an opportunity to rebuild your credit faster than if you continued to struggle with overwhelming debt.
Common Myths and Misconceptions
There are many myths and misconceptions about bankruptcy that can deter people from seeking the help they need. Let’s debunk some of these myths:
- Myth 1: “I will lose my home and car.” In reality, North Carolina’s bankruptcy exemptions allow you to protect essential assets, including your home and car, as long as you continue to make payments on secured debts.
- Myth 2: “Bankruptcy will ruin my credit forever.” While bankruptcy does impact your credit score, it also provides a path to rebuild your credit. Many people find that their credit score improves within a few years after filing for bankruptcy.
- Myth 3: “Only irresponsible people file for bankruptcy.” Financial distress can happen to anyone due to unforeseen circumstances such as job loss, medical emergencies, or divorce. Bankruptcy is a legal tool designed to help honest but unfortunate debtors get back on their feet.
The Bankruptcy Process in North Carolina
Filing for bankruptcy in North Carolina involves several steps, and having a knowledgeable bankruptcy defense lawyer by your side can make the process smoother and less stressful.
Step 1: Consultation
The first step is to schedule a consultation with one of our experienced bankruptcy lawyers. During this meeting, we will review your financial situation, discuss your goals, and determine the best type of bankruptcy for your needs.
Step 2: Gather Financial Documents
To file for bankruptcy, you will need to gather various financial documents, including tax returns, bank statements, outstanding bills, and mortgage statements. Our team will help you collect and organize these documents to ensure a complete and accurate filing.
Step 3: File Bankruptcy Petition
Once all the necessary documents are collected, we will prepare and file your bankruptcy petition with the U.S. Bankruptcy Court. This petition includes detailed information about your debts, assets, income, and expenses.
Step 4: Attend Required Meetings
After filing your petition, you will need to attend a meeting of creditors, also known as a 341 meeting. During this meeting, your creditors and the bankruptcy trustee will have the opportunity to ask questions about your financial situation. Our team will be there to support you and ensure the process goes smoothly.
Step 5: Discharge of Debts
If you filed for Chapter 7 bankruptcy, your debts will be discharged within a few months after the meeting of creditors. If you filed for Chapter 13 bankruptcy, you will need to complete your repayment plan before receiving a discharge.
Case Examples
To illustrate the impact of our work, here are some anonymized case examples:
Case Example 1: RESPA Violations Lead to Damages
In one case, we used our client’s pre-petition claims, including creditor misbehavior, to eliminate mortgage arrearages. This allowed our client to save their home from foreclosure and complete their Chapter 13 plan earlier than expected.
Case Example 2: Charging Too Much Interest
A retired military member was charged excessive interest on a loan. We sued the lender and recovered almost $25,000 for our client, eliminating their obligation to repay the loan through bankruptcy.
Case Example 3: Wrongful Issue of Form 1099
A creditor wrongfully issued a Form 1099 to our client, causing significant distress. We sued the creditor for violations of the automatic stay and North Carolina’s debt collection laws, resulting in a favorable settlement for our client.
Conclusion
At Delancey Street, we are committed to helping you navigate the complexities of bankruptcy law in North Carolina. Our experienced bankruptcy defense lawyers will provide you with the guidance and support you need to achieve a fresh financial start. Don’t let debt control your life. Contact us today to schedule a consultation and take the first step towards financial freedom.
Call to Action
Ready to regain control of your financial future? Contact Delancey Street today to schedule a consultation with one of our experienced bankruptcy defense lawyers. Let us help you navigate the path to financial freedom. Call us now or leave a comment below with any questions or concerns you may have. We’re here to help!