Ch. 7 or Ch. 13: Which Bankruptcy Can Save Your Car from Repossession??

Wondering if you can keep your car in a North Carolina Chapter 7 bankruptcy? Learn about vehicle exemptions, auto loans, and strategies to protect your car. The Law Office of Calvin Craig assists Raleigh residents with bankruptcy solutions.

Understanding the Costs of Filing for Chapter 13 Bankruptcy in North Carolina

How Do I Know If I Should File for Chapter 7 or Chapter 13 Bankruptcy in North Carolina?

Filing for bankruptcy can be a difficult decision, but for many individuals and families in financial distress, it can offer a fresh start. Chapter 13 bankruptcy, also known as a “wage earner’s plan,” allows debtors to create a plan to repay all or part of their debts over time. At the Law Office of Calvin Craig in North Carolina, we help clients navigate the Chapter 13 bankruptcy process and regain control of their financial future.  What Is Chapter 13 Bankruptcy? Chapter 13 bankruptcy is designed for individuals who have a steady income but are struggling to keep up with their debts. Unlike Chapter 7, which involves liquidating assets to pay off debts, Chapter 13 allows you to restructure your debts into a manageable payment plan that lasts three to five years. During this period, you make regular payments to a bankruptcy trustee, who then distributes the funds to your creditors. Key Benefits of Chapter 13 Bankruptcy Avoid Foreclosure: One of the biggest advantages of Chapter 13 is its ability to stop foreclosure proceedings. If you’ve fallen behind on mortgage payments, Chapter 13 gives you the opportunity to catch up on those payments over time while protecting your home from foreclosure. Consolidated Payments: Chapter 13 allows you to combine your debts into one manageable monthly payment. This can simplify your financial situation and reduce the stress of dealing with multiple creditors. Protection of Assets: Unlike Chapter 7, which may require you to sell certain assets to pay creditors, Chapter 13 allows you to keep your property while making payments on your debts. Debt Discharge: At the end of the repayment period, any remaining unsecured debts (such as credit card debt or medical bills) may be discharged, meaning you will no longer be required to pay them. Stop Collection Efforts: Once you file for Chapter 13, an automatic stay goes into effect, which halts wage garnishments, lawsuits, and collection calls from creditors. Eligibility for Chapter 13 Bankruptcy To qualify for Chapter 13 bankruptcy, you must meet certain criteria: Regular Income: Chapter 13 requires you to have a steady income that allows you to make regular payments under a repayment plan. Debt Limits: As of 2023, unsecured debts (such as credit cards and medical bills) must be below $465,275, and secured debts (such as mortgages and car loans) must be below $1,395,875 to qualify for Chapter 13. Tax Filings: You must be up to date with your tax filings to be eligible for Chapter 13 bankruptcy. The Chapter 13 Bankruptcy Process Filing the Petition: The process begins when you file a bankruptcy petition with the court. This includes providing detailed information about your assets, debts, income, and expenses. Creating a Repayment Plan: You will work with your attorney to create a repayment plan that outlines how you will repay your debts over the next three to five years. The plan must be approved by the bankruptcy court. Automatic Stay: Once the petition is filed, an automatic stay goes into effect. This prevents creditors from taking any collection actions, including foreclosure, repossession, or wage garnishment. Making Payments: You will begin making monthly payments to a bankruptcy trustee, who will distribute the funds to your creditors according to the approved repayment plan. Completion of the Plan: If you successfully complete the repayment plan, any remaining eligible unsecured debts may be discharged, giving you a fresh financial start. How Chapter 13 Differs from Chapter 7 While both Chapter 13 and Chapter 7 bankruptcy offer relief from overwhelming debt, they are fundamentally different. Chapter 7 is typically faster, allowing for the liquidation of non-exempt assets to pay off debts within a few months. However, it may require the sale of valuable assets and is only available to individuals who pass the means test, which measures your ability to repay debts based on your income. Chapter 13, on the other hand, is a reorganization of your debts that allows you to keep your property and repay what you owe over time. It is an ideal option for individuals who are behind on mortgage or car payments and want to avoid losing their home or vehicle. Why You Need an Experienced Bankruptcy Attorney Filing for Chapter 13 bankruptcy is a complex process that requires a deep understanding of bankruptcy law and financial planning. Having an experienced bankruptcy attorney by your side can make a significant difference in the outcome of your case. At the Law Office of Calvin Craig, we guide clients through each step of the process, ensuring that they meet all the necessary requirements and create a repayment plan that works for their unique financial situation. Our services include: Personalized Legal Advice: We help you understand your options and determine whether Chapter 13 bankruptcy is the best solution for your financial challenges. Filing Your Petition: We assist with filing all the necessary paperwork and ensuring that your petition is complete and accurate. Creating a Repayment Plan: We work with you to create a feasible repayment plan that fits your budget and meets the court’s requirements. Representation in Court: We represent you in court and at any hearings, advocating on your behalf to protect your rights and interests. Chapter 13 bankruptcy can be a powerful tool for individuals in North Carolina who are struggling with debt but want to keep their property and regain financial stability. By working with an experienced bankruptcy attorney at the Law Office of Calvin Craig, you can navigate the complexities of Chapter 13 and start building a brighter financial future. If you’re considering filing for Chapter 13 bankruptcy or need advice on managing your debt, contact the Law Office of Calvin Craig today for a consultation. We’re here to help you every step of the way.

Chapter 7 bankruptcy is a legal process that provides individuals with a fresh financial start by discharging most of their unsecured debts. If you are overwhelmed by credit card debt, medical bills, or other financial obligations, Chapter 7 may offer the relief you need. However, it’s not a decision to take lightly, as the process can have a lasting impact on your credit and finances. In this post, we’ll explore the ins and outs of filing for Chapter 7 bankruptcy in North Carolina, including eligibility requirements, the process, and what to expect. What is Chapter 7 Bankruptcy? Chapter 7 bankruptcy, also known as “liquidation bankruptcy”, involves the sale of certain non-exempt assets to pay off creditors. In exchange, most of your unsecured debts—such as credit card debt, medical bills, and personal loans—are eliminated, giving you a chance to rebuild your financial life. The process is typically completed within three to six months, making it a relatively quick way to achieve debt relief. Who is Eligible for Chapter 7 Bankruptcy in North Carolina? Not everyone qualifies for Chapter 7 bankruptcy. To determine eligibility, you must pass the Chapter 7 Means Test, a formula that evaluates your income, expenses, and family size to determine whether you have enough disposable income to repay your debts. Means Test: The means test compares your average monthly income over the past six months to the median income for a household of your size in North Carolina. If your income is below the state median, you automatically qualify. If your income is above the median, you must complete a more detailed means test to assess your disposable income. The purpose of this test is to prevent individuals who can afford to repay their debts from abusing the bankruptcy system. Prior Bankruptcy Discharges: If you have previously filed for Chapter 7 bankruptcy within the last eight years, you are not eligible to file again until the time limit has passed. Credit Counseling Requirement: Before filing, you must complete an approved credit counseling course within 180 days of your bankruptcy filing. This course is designed to help you understand your options and determine whether bankruptcy is the best solution for your financial situation. The Chapter 7 Bankruptcy Process in North Carolina Filing for Chapter 7 bankruptcy involves several steps. Here’s an overview of what to expect: Filing the Petition The process begins with filing a bankruptcy petition and accompanying schedules with the U.S. Bankruptcy Court for the district where you live. In North Carolina, there are three federal bankruptcy districts: the Eastern, Middle, and Western Districts. The filing includes detailed information about your assets, liabilities, income, and expenses. Automatic Stay Once you file, an automatic stay goes into effect immediately. This court order halts most collection actions, including wage garnishments, lawsuits, and creditor harassment, providing you with temporary relief while your case is pending. Appointment of a Bankruptcy Trustee The court appoints a bankruptcy trustee to oversee your case. The trustee’s role is to review your petition, identify non-exempt assets that can be sold, and ensure that the bankruptcy process is conducted fairly. Meeting of Creditors (341 Meeting) About 20 to 40 days after filing, you will attend a 341 Meeting of Creditors, where the trustee and any creditors who wish to attend will ask questions about your financial situation and the information provided in your bankruptcy petition. In most cases, creditors do not attend, and the meeting is relatively straightforward. Exemption of Assets North Carolina has its own set of exemption laws that dictate which assets you can keep. Common exemptions include equity in your home (up to a certain amount), retirement accounts, personal property, and certain household goods. If your assets exceed these exemptions, the trustee may sell the non-exempt property to pay creditors. Discharge of Debts If everything is in order and no objections are raised, the court will issue a discharge order, eliminating most of your unsecured debts. Certain debts, such as student loans, child support, and recent tax obligations, are not dischargeable. What Debts Are Discharged in Chapter 7 Bankruptcy? One of the main benefits of Chapter 7 bankruptcy is the discharge of unsecured debts, which means you are no longer legally required to repay them. Some of the most common debts that can be discharged include: Credit card debt Medical bills Personal loans Utility bills Certain older tax debts Payday loans What Debts Cannot Be Discharged? While Chapter 7 can wipe out many types of debt, some obligations remain. Debts that cannot be discharged include: Child support and alimony Student loans (except in rare cases of undue hardship) Recent tax debts Debts incurred through fraud or willful misconduct Court-ordered fines and penalties Pros and Cons of Chapter 7 Bankruptcy Before deciding to file for Chapter 7 bankruptcy, it’s important to weigh the pros and cons. Pros: Quick Debt Relief: Most Chapter 7 cases are completed in a few months. Automatic Stay: Immediately stops collection actions, giving you breathing room. Debt Discharge: Eliminates most unsecured debts, allowing you to start over financially. Cons: Impact on Credit: Chapter 7 remains on your credit report for 10 years, which can make it difficult to obtain new credit. Loss of Non-Exempt Assets: You may have to surrender certain assets to the bankruptcy trustee. Not All Debts Are Dischargeable: Some debts, like student loans and child support, will still need to be paid. Life After Chapter 7: Rebuilding Your Financial Future Filing for Chapter 7 bankruptcy can feel overwhelming, but it’s also an opportunity for a fresh start. After your debts are discharged, you can begin rebuilding your financial life. Consider the following steps: Create a Budget: Develop a budget that allows you to manage your finances responsibly. Build an Emergency Fund: Start setting aside money for emergencies to avoid future debt. Rebuild Your Credit: Consider using a secured credit card or becoming an authorized user on someone else’s account to rebuild your credit. How The Law Office of Calvin Craig Can Help Deciding whether to file for Chapter 7 bankruptcy is a difficult decision that requires a thorough understanding of your financial situation and the potential consequences. At the Law Office of Calvin Craig, we have extensive experience guiding clients through the bankruptcy process in North Carolina. We can evaluate your situation, help you understand your options, and provide the support you need to make informed decisions. If you’re considering Chapter 7 bankruptcy or have questions about your eligibility, contact us today to schedule a consultation. Our team is here to help you achieve a fresh financial start!

If you find yourself drowning in debt and unable to see a way out, you are not alone. Many individuals in North Carolina face financial challenges that seem insurmountable. However, there is hope. Chapter 7 bankruptcy can provide you with a fresh start and a chance to rebuild your financial future. At the Law Office of Calvin Craig, we specialize in helping individuals navigate the complexities of Chapter 7 bankruptcy and guide them towards a brighter financial future. Chapter 7 bankruptcy is often referred to as liquidation bankruptcy, as it involves selling off assets to pay off debts. However, many people are surprised to learn that most individuals who file for Chapter 7 bankruptcy do not end up losing any assets at all. In fact, certain assets are protected under state and federal laws known as exemptions. Our experienced attorneys at the Law Office of Calvin Craig will work diligently to ensure that you understand your rights and maximize the protections available to you. Filing for Chapter 7 bankruptcy can be a complex process that requires careful attention to detail and adherence to strict deadlines. That's where having an experienced attorney on your side can make all the difference. The Law Office of Calvin Craig has helped countless North Carolina residents successfully navigate the Chapter 7 bankruptcy process and emerge with a clean slate. From preparing your petition to representing you in court, our team will be by your side every step of the way. One of the key benefits of filing for Chapter 7 bankruptcy is that it provides immediate relief from creditor harassment, wage garnishments, and other collection actions. As soon as you file for bankruptcy, an automatic stay goes into effect, putting a stop to most collection activities. This can provide much-needed breathing room while you work towards resolving your debts through the bankruptcy process. At the Law Office of Calvin Craig, we understand that each individual's financial situation is unique, which is why we take a personalized approach to each case we handle. We will carefully review your finances, assess your goals, and develop a customized strategy tailored to your needs. Our goal is not just to help you get through bankruptcy but also to set you on a path towards financial stability and success. If you are struggling with overwhelming debt and considering filing for Chapter 7 bankruptcy in North Carolina, don't hesitate to reach out to the Law Office of Calvin Craig today. Our compassionate team of attorneys is here to guide you through every step of the process and help you achieve a fresh start. Let us help you take control of your finances and build a brighter future ahead.

Facing financial difficulties can be overwhelming and stressful, especially when dealing with mounting debts and the threat of foreclosure. Chapter 13 bankruptcy offers a viable solution for individuals seeking to reorganize their debts and regain control of their financial future. At The Law Office of Calvin Craig, we specialize in guiding clients through the Chapter 13 bankruptcy process in North Carolina. Here’s how a Chapter 13 bankruptcy attorney can help you achieve financial stability.  1. Understanding Chapter 13 Bankruptcy Chapter 13 bankruptcy, also known as a wage earner’s plan, allows individuals with regular income to develop a plan to repay all or part of their debts over a period of three to five years. Unlike Chapter 7 bankruptcy, which involves liquidating assets to pay off debts, Chapter 13 focuses on reorganization and allows you to keep your property while catching up on missed payments. 2. Evaluating Your Financial Situation An experienced Chapter 13 bankruptcy attorney can evaluate your financial situation, including your income, expenses, assets, and debts. They can help you determine whether Chapter 13 is the right option for you and explain how it compares to other debt relief alternatives. This evaluation is crucial for making informed decisions about your financial future. 3. Developing a Repayment Plan One of the key components of Chapter 13 bankruptcy is creating a repayment plan that outlines how you will repay your debts over the designated period. An attorney can help you develop a feasible plan that meets the requirements of the bankruptcy court and fits within your budget. They can also negotiate with creditors to secure favorable terms, such as reduced interest rates or extended repayment periods. 4. Filing the Bankruptcy Petition Filing for Chapter 13 bankruptcy involves completing extensive paperwork and submitting various documents to the bankruptcy court. An attorney can handle all aspects of the filing process, ensuring that your petition is accurate, complete, and submitted on time. This reduces the risk of errors that could delay your case or result in a dismissal. 5. Representing You in Court Throughout the Chapter 13 bankruptcy process, you will need to attend court hearings and meetings with creditors. An attorney can represent you in these proceedings, advocating on your behalf and ensuring that your interests are protected. They can address any objections from creditors or the bankruptcy trustee and help you navigate the legal complexities of your case. 6. Modifying the Repayment Plan Life circumstances can change during the repayment period, affecting your ability to adhere to the original plan. An attorney can assist you in modifying the repayment plan if necessary, whether due to job loss, medical expenses, or other unforeseen events. They can help you petition the court for modifications and ensure that any changes are legally approved. 7. Ensuring Compliance with the Plan Successfully completing a Chapter 13 bankruptcy plan requires adherence to the repayment terms and timely payments. An attorney can provide ongoing support and guidance to ensure that you remain in compliance with the plan. They can also help you address any issues that may arise during the repayment period, such as disputes with creditors or missed payments. 8. Achieving Financial Recovery The ultimate goal of Chapter 13 bankruptcy is to help you achieve financial recovery and stability. An attorney can provide valuable advice on rebuilding your credit, managing your finances, and avoiding future debt problems. They can also help you understand the long-term impact of bankruptcy on your financial health and provide strategies for maintaining a positive financial outlook. Benefits of Hiring a Chapter 13 Bankruptcy Attorney Hiring a Chapter 13 bankruptcy attorney offers several advantages: Expert Legal Knowledge: An attorney with experience in bankruptcy law understands the intricacies of Chapter 13 and can provide expert advice tailored to your situation. Thorough Case Management: An attorney can handle all aspects of your case, from evaluating your financial situation to developing a repayment plan and representing you in court. Effective Negotiation: An attorney can negotiate with creditors on your behalf, securing favorable terms for your repayment plan. Peace of Mind: Knowing that a professional is handling your bankruptcy case allows you to focus on your recovery, confident that your legal matters are being addressed. At The Law Office of Calvin Craig, we are dedicated to providing compassionate and effective legal representation for clients seeking Chapter 13 bankruptcy relief in North Carolina. Our team of experienced attorneys will work tirelessly to protect your rights and help you achieve a fresh financial start.

Navigating bankruptcy can be challenging, especially when deciding between Chapter 7 and Chapter 13. Each type of bankruptcy offers distinct advantages and processes tailored to different financial situations. The Law Office of Calvin Craig provides expert guidance to help you understand the key differences between Chapter 7 and Chapter 13 bankruptcy in North Carolina, ensuring you make an informed decision for your financial future.

Discover the benefits of filing for Chapter 13 bankruptcy in North Carolina. Learn how it can help you manage debt and protect your assets while achieving financial stability.