For many years. our practice has been limited to bankruptcy cases. We do that because we like practicing bankruptcy law. We like doing something We are good at, and we like the outcomes for our clients. Over the years, we have saved many houses from foreclosure, stopped many repossessions, and have taken the burden of unpaid debts off of many people who simply can't pay. Almost all of our clients are in bankruptcy court Due to no fault of their own: there has been a sickness, job layoff, divorce, death in the family or some other event that could happen to anyone, but which ruins our clients financially. Our Constitution provides for a bankruptcy law because the framers knew that giving people a fresh start was important to a good economy.
One thing we like about bankruptcy law is that, unlike any other area of law practice, we can assure our clients that if they give us good information, they can be assured that the result will be the one they have been promised. The process is meant to be as straightforward as possible, because we know that our clients are anxious about how things will go.
The Bankruptcy Court meets in Asheville for the western part of the state, so many of our clients come from communities such as Marion, Murphy, Hendersonville, Robbinsville, etc. It means we get to know people from all over the mountains, which is something that we enjoy.
Bankruptcy is not the best choice for everyone, and in many cases, we can find ways to avoid bankruptcy while dealing with our client’s debt problems. The best first step is to simply come see us so we can discuss your options in bankruptcy court. We want people to feel free to meet with us, so there is no charge for the initial consultation.
Chapter 7 , Also known as a “Straight Bankruptcy”, Is what most people think of when they think of bankruptcy cases. A trustee is appointed to liquidate the assets, and all of the debtor’s debts, with a few exceptions, are discharged. The debtor get to keep what property falls under North Carolina homestead exemption.Oftentimes, people opt to maintain mortgage payments and car payments in order to retain the property secures the solutions.
Chapter 7 bankruptcy is so called because its law is found in Chapter 7 of the federal Bankruptcy Code. This form of bankruptcy is also called "straight" or "liquidation" bankruptcy because a bankruptcy trustee might sell (or "liquidate") some of your property in order to repay your creditors. In Chapter 7, your trustee also cancels many, if not all, of your outstanding debts. Who is a bankruptcy trustee? A trustee is assigned to your case by the Bankruptcy Administrator’s Office. The trustee is most often a lawyer with experience in bankruptcy law, who will review your petition, administer your estate, and run the meeting of the creditors, as well as assuring that there is no fraud. You would receive a fastpass for Chapter 7 if you are a disabled veteran who incurred debt while in active military service or if your debt has come primarily from running a business. Others are subject to eligibility requirements, including your current monthly income (comparative to the median family income in North Carolina) and your previous bankruptcy history. Likewise, you may not have defrauded creditors. These requirements and others are taken into consideration when ruling on your eligibility for Chapter 7.Contact Today
Chapter 11 Is a business reorganization case. Business people like, fluorescence, Donald Trump uses a way to restructure their corporate debt. Basically, the plan was filed with the court is voted on by the companies creditors. Once the plan is adopted, it becomes the restructured debt,. Chapter 11 is expensive and time-consuming, and works best for a business which needs printing, but is in the position to pay some of its debt over the long haul.
While Chapter 7 bankruptcy is often filed by individuals looking to eliminate unsecured debts, such as personal loans or credit cards that have no collateral for the loan, Chapter 11 bankruptcy is most often used by large businesses (though it can help small businesses and certain individuals, as well) as a way to restructure debt and pay those debts back over time. In Chapter 11, a debtor remains in possession of their assets while running their business under court supervision to benefit creditors. The Bankruptcy Administrator generally appoints a creditor committee from among the largest creditors. The committee oversees the debtor's actions and is the body that negotiates reorganization with the debtor. This form of bankruptcy is the most flexible, in that there is some freedom for the debtor in structuring repayment as well as no set time limits for the debt to be repaid. Because of the complexities of this type of bankruptcy, including the increased costs of filing the case, this is often much more expensive to the debtor than the other bankruptcy types. Though it is more complex and expensive, Chapter 11 bankruptcy may be useful for someone who does not qualify for Chapter 13 bankruptcy.Contact Today
Chapter 12 Is a reorganization case, much like chapter 13, except it is available only to farmers. Their special provisions, which are not included in chapter 13, which gives some flexibility to the farmer debtor, and recognize the different ways that farmers relate to their creditors, including especially banks, and the land.
Chapter 12 bankruptcy is relatively new in terms of bankruptcy laws. It allows both family farmers and family fishermen to restructure their finances to avoid foreclosure or liquidation of their businesses. It has many parallels to Chapter 13 bankruptcy, but provides more benefits to family fishermen and farmers. Congress enacted Chapter 12 in 1986 as an emergency measure as the economy tightened agricultural credit, which placed increased pressure on the family farming and fishing industries. These provisions were temporary until they were finally made permanent in 2005. Under Chapter 12 laws, only a family farmer or fisherman with "regular annual income" may be eligible for Chapter 12 protection. Regular income may be seasonal as long as it is stable enough for the debtor to make payments in a repayment plan. Debtors may be individuals, partnerships, or corporations, as long as they are engaged in a farming or fishing operation. Other financial and debt ratio qualifications also apply. To attain Chapter 12, a debtor files a petition while continuing their farming/fishing operations. A trustee is appointed to oversee operations and receive debt payments. The repayment plan period generally runs between three to five years, depending on the debtor's circumstances.Contact Today
Chapter 13 Works best for debtors to would lose something with a straight bankruptcy, either because the value of the asset seated, José extension, or they were behind with payments on the car. Basically, debtor files plan with the court as to how the creditors will be paid, makes a monthly payment to the bankruptcy trustee, who pays their creditors for the. The typical plans five years long. Often times, but I think the chapter 13 case is less than payments for secured creditors going forward. When vanished chapter 13 is that the attorneys fees are included in the monthly payment, so the only advanced payment you make to file chapter 13 is a $310 filing fee for clerk court. Then, beginning 30 days after the filing, the debtor make one payment to the bankruptcy trustee, which typically covers all of the debtor’s debts.
Chapter 13 bankruptcy is designed for individuals or married couples who, given several years, are capable of repaying their debts. Debtors must create a plan to repay their debts within a window of three to five years. Debtors must have regular income, which is why this type of bankruptcy is also called the "Wage Earner Plan." Because Chapter 13 allows debtors to retain their property while repaying debts, it is often the most desireable bankruptcy option. Chapter 13 often allows individuals to modify their debts by reducing total amount of debts and interest rates depending on what kind of debt it is. To begin the process, a debtor must file a petition with bankruptcy court with a list of assets, debts, expenses, income, contracts, and current tax returns. The debtor must shortly after file a bankruptcy plan that the judge finds reasonable. Much like the several of the other bankruptcy types, a trustee oversees debt repayments to creditors. The debtor is not required to have direct contact with creditors under Chapter 13, and creditors are required to cease attempts to retrieve debts. This, like other bankruptcy types, affects a debtor's credit score, remaining on reports for seven years.Contact Today
The cost of filing for bankruptcy can vary based on a number of factors, including what type of bankruptcy is being filed and the additional legal costs involved. While it is possible to “DIY” a bankruptcy, the complexities of filing appropriate paperwork, working with the trustee or committee, and creating a repayment or restructuring plan can be enormous. Attorneys are a valuable asset in ensuring the best possible outcome for their client. The more complex the type of bankruptcy, the more work is required from the legal team, which is reflected in legal fees. For example, Chapter 7 bankruptcy is considered the most straightforward bankruptcy filing. The filing fee is $335, not including legal fees. Chapter 13 is more complex. It has a $281 filing fee, but legal fees can be double the cost of Chapter 7. However, Chapter 13 payment plans can be structured to allow legal fees to be paid from the debt repayment plan, with little to no money down. Chapter 11 is considered the most expensive type, due to its incredibly complex nature. The filing fee is $1,717, but Bloomberg Law reports that the overall cost of filing Chapter 11 is 1-2 percent the value of a debtor's assets in larger cases and 4-5 percent in smaller cases.Contact Today
Each state has laws that make some types of property off-limited to "unsecured" creditors (creditors with no lien on your property). Credit card and medical bills are the most common types of unsecured debt. These creditors cannot force you to sell exempt property to pay off debts. Even if the creditor wins a judgment against you in court and takes the steps to attach a "judgment lien" to your property, you are still entitled to your exemption amount before sale proceeds are distributed to an unsecured creditor. If you sell your property, the creditor has a right to have its lien paid by the proceeds before you receive anything. If all of your property is protected by exemption laws, you are said to be judgement proof. In this situation, the case is known as a "no asset" bankruptcy. In the state of North Carolina's exemption system, homeowners may exempt up to $35,000 of their home or other real property covered by the homestead exemption, as well as a $3,500 automobile exemption. North Carolina also permits the doubling of the homestead exemption for married couples filing joint bankruptcy. Exemptions only protect your property's equity -- the difference between your property's value and what you owe to secured creditors.Contact Today
Bankruptcy is a federal law which permits people to get protection from their creditors in order to get a "fresh start" and preserve their assets. Some bankruptcy cases are reorganization cases, which restructure debt and permit repayments, and some cases are liquidation cases, which eliminate the debt and allow retention of a certain amount of property.
Chapter 7 is a liquidation case, which discharges all the debtor's debt, with some exceptions. A trustee of the court is appointed to liquidate the debtor's property and to take the money and pay it to the creditors. The debtor is allowed to keep that property which falls under the limits provided by the North Carolina State Homestead Exemption. Creditors who hold liens on the debtor's property continue to hold those liens, and will have to be paid or be permitted to repossess their collateral.
Chapter 13 is a reorganization case, in which the debtor makes a monthly payment to a bankruptcy trustee over a period of three to five years, at which time the debtor receives a discharge of debt. A Chapter 13 case works best for debtors who would lose something with a Chapter 7 straight bankruptcy, since the debtor in the Chapter 13 case gets to retain all of his or her property.
Chapter 11 is a business reorganization case in which a business gets relief from its creditors while it gets approval of a repayment plan.
Each case is different depending on the amount and type of debt, the value of assets, and the client's objectives. The only way to get a complete answer is to review all of the facts with the bankruptcy attorney.
There are no eligibility requirements for filing bankruptcy, although generally speaking anyone who cannot pay his or her bills as they fall due is a candidate for bankruptcy. With some exceptions, the fact that you filed bankruptcy in the past will not keep you from filing bankruptcy now.
In a Chapter 13 or a Chapter 11 case, you are allowed to keep all of your property, since you are repaying the creditors under a court approved plan. In a Chapter 7 case, you may keep all property which is exempt under the North Carolina Homestead Exemption, as well as that property which has liens which you are paying.
The North Carolina Homestead Exemption provides that a debtor may keep $35,000. in equity in real estate which serves as the residence, $3,500 in value in a motor vehicle, $5,000 in household goods, and an additional $5,000 in other property depending on how much is claimed in residential real estate. The amounts are doubled if a husband and wife file bankruptcy together, and certain other types of property may also be exempt.
In a Chapter 13 reorganization case, usually the secured creditors are provided for in the debtor's plan, and are paid with the money deposited with the Chapter 13 Trustee. In a Chapter 7 case, the secured creditors are paid directly by the debtor, unless the debtor decides to allow the creditor to repossess the property.
There is nothing worse that you can do to your credit than filing a bankruptcy case. For most people, their credit is already bad due to pending foreclosures and repossessions. A bankruptcy will not improve your credit, although it does provide a way of managing debt so that credit, over time, may be improved.
The fact that you filed bankruptcy cannot be used to discriminate against you in employment.
Cosigners are protected in Chapter 13 cases, but in Chapter 7 cases the cosigner may be called on to pay debt which has been discharged in the Chapter 7 case.
Many, many bankruptcies are filed to stop foreclosures. So long as the bankruptcy petition is filed before the day the real estate is sold, and in some cases within 10 days thereafter, the foreclosure can be stopped. Bankruptcy can also stop a repossession. A court order is entered automatically upon filing of the bankruptcy case which prohibits creditors from taking any action to collect their debts, including repossessions.
From the time you file a bankruptcy case, no one can contact you for any reason regarding your debts, and it is a violation of the bankruptcy law for them to do so.
Filing bankruptcy is like filing any other legal action, and is a matter of public record. On the other hand, very few, if any, newspapers publish bankruptcy filings, and the only people who will be contacted about the bankruptcy directly will be the ones to whom you owe money.
The bankruptcy case begins and ends, in many ways, on the day that it is filed. That is the day that the relief from creditors begins, and it is the established date for determination of assets and debts. The bankruptcy "fresh start" is effective as of the day the bankruptcy is filed.
In all cases, the debtor is required to meet informally with the bankruptcy trustee. This meeting usually takes no more than five minutes and unless there are some problems in the case, this will be the only time the debtor is required to attend any court hearings or appear anywhere.
The only way that it is possible to be denied a discharge of debt is to commit fraud in connection with your bankruptcy or otherwise abuse the bankruptcy process.
Most taxes, child support and alimony, student loans, and certain debts incurred as a result of fraudulent behavior are not dischargable in a bankruptcy case.