If you have overwhelming debt, and have to determine which bills to pay and which to skip every month, filing chapter 7 can give yourself a fresh start. Once you file, creditors have to immediately stop any collection efforts, including letters and phone calls. When you file for chapter 7 bankruptcy, then all of your property will be liquidated in order to pay your debts, however you may protect a limited amount of your property from liquidation. In some cases, debtors are able to protect all of their property from liquidation.
In order to qualify for Chapter 7, you must satisfy the means test, which calculates your income and expenses compared to the median income in North Carolina. However if you do not satisfy the means test, most likely you will still be able to file chapter 13 bankruptcy. I can help you determine whether are you are eligible for chapter 7 bankruptcy and if it is the best solution for dealing with your debts.
Chapter 7 Does Not Discharge All Debt.
Not all of your debt will be discharged by filing chapter 7 bankruptcy. If you are currently paying a mortgage, a car payment, or another secured debt, you will need to continue making those payments in order to keep that property. You will also not be able to discharge child support, student loans, recent back taxes, and judgments based on personal injury claims. However, filing chapter 7 often helps pay these loans indirectly, since it will free up money that was being used to pay off credit cards and other dischargeable debts.
Preparing for your appointment
So that I can immediately begin analyzing your case and best serve you, it is best that you bring certain information to your initial appointment with me, including:
- List of creditors’ names, amount of each claim, and nature of the debt
- Your employer’s name and your gross and net income
- Any other source of income
- A list of what you own (assets) and estimates of the value of each item
- A list of your monthly bills and details of each expense
Call me at (984) 219-8238 to arrange your consultation or contact me online.