Are you deciding whether or not bankruptcy is the right financial option for you? If so, here is some good information to know. Bankruptcy cases are not heard in state court, but rather bankruptcies in North Carolina are adjudicated under federal law. In short, the courts that oversee bankruptcy cases are known as Federal Bankruptcy Courts. If you’re living in Guilford or Forsyth County that means instead of going to the Guilford County Courthouse or Forsyth County Courthouse, you’d go to the United States Bankruptcy Court for the Middle District of North Carolina with locations in Greensboro and Winston Salem. Similarly, there are other District Courts that all come together to represent the 100 counties of North Carolina. Filing for bankruptcy can help those who are overwhelmed by debt that they are struggling to pay or afford. When facing this kind of financial hardship, private individuals can file for Chapter 7 or Chapter 13 bankruptcy.
The qualification for Chapter 7 bankruptcy is based on driven income and allows for a liquidation plan to be created with no repayment plan, similar to Chapter 13 bankruptcy. The debtor agrees to sell off some assets to be applied to current debt in exchange for dismissal of any remaining debt. When examining assets, assets are placed into categories of non-exempt and exempt assets. The debtor does not need to sell everything and may keep items that are deemed exempt in their case, such as a home or car.
For Chapter 13 bankruptcy, a debtor can work towards eliminating debt through a 3-to-5 year repayment plan. This chapter is for those who have a source of income that is consistent but not enough to cover repayment of debt in a timely manner. If entering Chapter 13 bankruptcy, the debtor agrees to a plan that the appointed Bankruptcy Trustee creates for repaying the debt. In the end, a debtor under Chapter 13 may not have to repay all debt they have incurred.
Choosing to file for bankruptcy is not a light decision to make and can be a very complex process to go through. When filing for bankruptcy it is in your best interest to find the right Bankruptcy Attorney to support you and guide you through the process.
At the Law Office of Stephen E. Robertson, we provide all the mentioned bankruptcy services as listed above as well as family law services. Stephen E. Robertson is a Bankruptcy and Family Law Attorney in Greensboro NC as well as a very reputable Greensboro Divorce Lawyer. He serves the following North Carolina counties: Guilford, Rockingham, Randolph, Forsyth, Davidson, Alamance, and surrounding communities. For more information, contact our office at firstname.lastname@example.org. For more information about the United States Bankruptcy Court for the Middle District of North Carolina, as well as the other District Courts overseeing North Carolina Bankruptcy visit: http://www.ncmb.uscourts.gov/.