Information About Chapter 7 Bankruptcy
For those who are experiencing heavy debts, a viable option might be declaring Chapter 7 bankruptcy, which helps debtors get a fresh start on their finances. Also known as straight or liquidation bankruptcy, Chapter 7 gets rid of many types of an individual’s debt in return for selling any nonexempt property. These include items like family heirlooms, cash, investments, stocks, bonds, second vehicles, second home, or any other valuable items.
You are allowed to protect certain exempt property from creditors under a Chapter 7 bankruptcy, which would include items such as clothing, necessary household furnishings, appliances, pensions, tools for a debtor’s job, personal injury damages, and a car up to a certain value. Debtors may also retain a certain portion of equity on their home. Under the North Carolina homestead exemption, those who are filing for Chapter 7 bankruptcy can protect up to $35,000 from their primary residence.
Establishing Eligibility for Chapter 7 Bankruptcy
In establishing if you are eligible for Chapter 7 bankruptcy, the courts will first look at your income and measure it against the income of families that are your size. If your income is low enough, then you may qualify for this type of bankruptcy without having to taken any further steps to pursue your claim.
If you don’t qualify, however, then you are required to take a means test. The means test will determine if you have enough disposable income to pay off your debts. Based on these factors, the courts will confirm that you are not able to repay back either all or a partial amount of the debt within a reasonable number of years. If your income is too high or you fail the means test, then you may be able to file for Chapter 13 bankruptcy. For further information, contact a Charlotte bankruptcy attorney from the Law Office of Jack G. Lezman, PLLC who can give you wise legal counsel about how to proceed.
The Chapter 7 Bankruptcy Process
Under the Bankruptcy Code, there are certain procedures that an individual seeking to file for bankruptcy must follow. The United States Courts detail how one goes about this process, noting that much of the process is administrative, conducted outside a courthouse. After a person files for bankruptcy, the bankruptcy judge is the official in charge of deciding if that person is eligible or not.
The person filing for Chapter 7 bankruptcy will most likely not appear in court unless there is an issue with the case. If the judge grants permission to file, then a trustee takes over the debtor’s assets and turns them into cash. The money is then given to the creditors. If a person has no assets that can be liquidated, then that person will most likely receive a discharge that releases them from certain debts. If all goes well, then a debtor will most likely receive their discharge within a few months.
It is important to keep in mind, however, that not all debts can be discharged through a Chapter 7 bankruptcy. Some possible exceptions include alimony, student loans and fraudulent debts. Fortunately, this form of bankruptcy is often able to eliminate the majority of the filer’s debts and provide relief.
Get in Touch with a Chapter 7 Bankruptcy Attorney!
It is important to understand the North Carolina laws surrounding bankruptcy. If you have substantial amount of credit card or medical debt, Chapter 7 might be right for you. Don’t hesitate seek legal counsel so you can stop getting harassed by creditors! By filing for Chapter 7 bankruptcy, you can get a fresh financial start in this liquidation process. Your assets are collected or sold and your debts are relieved. The trustee can sell your assets and pay you the amount that you were exempted.
For questions or inquiries regarding Chapter 7 bankruptcy, it is important to obtain relevant information from a Charlotte bankruptcy lawyer. At the Law Office of Jack G. Lezman, PLLC, we can get you the guidance you need from the beginning of the process through to the end. We can also help you protect your future and know what to expect during life after bankruptcy. Our firm understands that your financial future is of utmost importance and we will do whatever we can to ensure that you choose the best option. You deserve an experienced legal team that will do everything to protect your assets!
Contact a Charlotte Chapter 7 bankruptcy lawyer from our firm today for legal guidance through this difficult situation.