Raleigh, NC Bankruptcy Defense Lawyers
Bankruptcy can be a daunting and emotionally taxing experience. Whether you’re an individual overwhelmed by debt or a business facing financial distress, navigating the complexities of bankruptcy law requires expert guidance. At Delancey Street, we understand the challenges you face and are here to help you find a path to financial stability. Our experienced bankruptcy defense lawyers in Raleigh, NC, are dedicated to providing compassionate and effective legal representation tailored to your unique situation.
Understanding Bankruptcy: A Fresh Start
Bankruptcy is a legal process designed to help individuals and businesses eliminate or repay their debts under the protection of the bankruptcy court. It offers a fresh start for those who have found themselves in insurmountable financial difficulties. However, the process can be complex, involving various types of bankruptcy filings, each with its own set of rules and requirements.
Types of Bankruptcy
In the United States, bankruptcy cases are governed by federal law and are filed in federal bankruptcy courts. The most common types of bankruptcy include:
- Chapter 7: Also known as “liquidation” bankruptcy, Chapter 7 allows individuals to discharge most of their unsecured debts by liquidating non-exempt assets. It is typically used by those with limited income who cannot repay their debts.
- Chapter 11: Often referred to as “reorganization” bankruptcy, Chapter 11 is primarily used by businesses to restructure their debts and continue operations while repaying creditors over time. It can also be used by individuals with substantial debts.
- Chapter 13: This type of bankruptcy allows individuals to reorganize their debts and create a repayment plan to pay back creditors over three to five years. It is suitable for those with a steady income who can afford to make regular payments.
The Role of a Bankruptcy Defense Lawyer
Navigating the bankruptcy process without legal assistance can be overwhelming and risky. A skilled bankruptcy defense lawyer can provide invaluable support by:
- Evaluating Your Financial Situation: Our attorneys will thoroughly assess your financial circumstances to determine the most appropriate type of bankruptcy for your case.
- Handling Paperwork: Bankruptcy involves extensive documentation, including petitions, schedules of assets and liabilities, and statements of financial affairs. We ensure that all paperwork is accurately completed and submitted on time.
- Representing You in Court: Our lawyers will represent you in bankruptcy court, advocating on your behalf and addressing any objections from creditors.
- Protecting Your Assets: We work diligently to protect your assets and ensure that you retain as much of your property as possible under the law.
Common Concerns and Misconceptions
Bankruptcy is often misunderstood, leading to unnecessary fear and hesitation. Let’s address some common concerns and misconceptions:
Misconception: Bankruptcy Is a Sign of Financial Irresponsibility
Truth: Many people believe that filing for bankruptcy indicates financial irresponsibility. However, bankruptcy can result from various factors beyond one’s control, such as unexpected medical bills, job loss, or economic downturns. It is a legal tool designed to provide relief and a fresh start.
Misconception: You Can Only File Once
Truth: While there are limitations on how frequently you can file for bankruptcy, it is not a one-time-only option. The waiting periods between filings vary depending on the type of bankruptcy previously filed and the type you wish to file now.
Misconception: Bankruptcy Will Ruin Your Credit Forever
Truth: While bankruptcy will impact your credit score, it is not a permanent mark. Over time, with responsible financial behavior, you can rebuild your credit. In many cases, individuals find that their credit scores improve after bankruptcy because they are no longer burdened by unmanageable debt.
Misconception: You Will Lose Everything
Truth: Bankruptcy laws provide exemptions that allow you to keep certain essential assets, such as your home, car, and personal belongings. The specifics vary by state, and our lawyers will help you understand what you can protect.
The Bankruptcy Process: Step by Step
Filing for bankruptcy involves several steps, each requiring careful attention to detail. Here’s an overview of the process:
1. Initial Consultation
During your initial consultation with our bankruptcy defense lawyers, we will review your financial situation, discuss your goals, and determine the best course of action. This consultation is an opportunity for you to ask questions and gain a clear understanding of the process.
2. Filing the Petition
Once we determine the appropriate type of bankruptcy, we will prepare and file the bankruptcy petition and related documents with the court. These documents include schedules of assets and liabilities, a statement of financial affairs, and a means test calculation (for Chapter 7 cases).
3. Automatic Stay
Upon filing, an automatic stay goes into effect, halting most collection actions by creditors. This means that creditors must stop contacting you, garnishing your wages, or foreclosing on your home.
4. Meeting of Creditors
Approximately 30 to 40 days after filing, you will attend a meeting of creditors (also known as a 341 meeting). During this meeting, the bankruptcy trustee will ask you questions under oath about your financial affairs and the documents you filed. Creditors may also attend and ask questions.
5. Debtor Education Course
To receive a discharge of your debts, you must complete a debtor education course after filing. This course provides valuable information on managing your finances and avoiding future financial difficulties.
6. Discharge of Debts
If all requirements are met, the court will issue a discharge order, releasing you from personal liability for most debts. This means you are no longer legally obligated to repay the discharged debts.
Case Examples: Real Stories, Real Solutions
At Delancey Street, we have helped numerous clients navigate the bankruptcy process and achieve financial stability. Here are a few anonymized case examples to illustrate how we can make a difference:
Case Example 1: Saving a Home from Foreclosure
Our client was facing foreclosure due to missed mortgage payments. By filing a Chapter 13 bankruptcy, we were able to stop the foreclosure and create a repayment plan that allowed the client to catch up on missed payments and keep their home. Additionally, we identified violations of the Real Estate Settlement Procedures Act (RESPA) by the mortgage servicer and used this leverage to negotiate a favorable settlement, reducing the client’s overall debt.
Case Example 2: Eliminating Credit Card Debt
A client burdened by overwhelming credit card debt sought our help. After evaluating their financial situation, we determined that Chapter 7 bankruptcy was the best option. We successfully filed the petition, and within a few months, the client received a discharge of their unsecured debts, providing them with a fresh start.
Case Example 3: Business Reorganization
A small business owner struggling with debt sought our assistance. We filed a Chapter 11 bankruptcy, allowing the business to continue operations while restructuring its debts. Through careful negotiation and strategic planning, we helped the business reduce its debt burden and emerge stronger and more financially stable.
Legal Citations and Case Law
Understanding the legal framework and relevant case law is crucial in bankruptcy proceedings. Here are some key legal references:
- Bankruptcy Code: The primary source of bankruptcy law in the United States is Title 11 of the United States Code.
- Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA): This act introduced significant changes to bankruptcy law, including the means test for Chapter 7 filings.
- Case Law: Various court decisions shape the interpretation and application of bankruptcy law. For example, the Supreme Court case Ransom v. FIA Card Services, N.A., 562 U.S. 61 (2011), addressed the means test and allowable expenses in Chapter 13 cases.
Why Choose Delancey Street?
Choosing the right bankruptcy defense lawyer can make all the difference in your case. Here’s why Delancey Street stands out:
- Experience: Our team of seasoned attorneys has extensive experience handling bankruptcy cases in Raleigh, NC. We understand the local laws and court procedures, ensuring that your case is handled efficiently and effectively.
- Personalized Service: We treat our clients like family, providing personalized attention and tailored solutions. We take the time to understand your unique situation and develop a strategy that meets your needs.
- Compassion and Empathy: We know that bankruptcy can be an emotional and stressful experience. Our lawyers approach each case with compassion and empathy, offering support and guidance every step of the way.
- Proven Results: Our track record speaks for itself. We have successfully helped countless clients achieve financial stability and a fresh start through bankruptcy.
Take the First Step Towards Financial Freedom
If you’re struggling with debt and considering bankruptcy, don’t wait any longer. Contact Delancey Street today to schedule a free consultation with one of our experienced bankruptcy defense lawyers in Raleigh, NC. Let us help you navigate the complexities of bankruptcy law and find a path to financial freedom. Remember, you’re not alone—our team is here to support you every step of the way.