Bankruptcy Lawyers In North Carolina
If you’re considering applying for bankruptcy or have already begun the process, you likely have many questions. What will you lose? How will this affect your future? Will you be able to start over again? Filing for bankruptcy can feel earth-shattering, but having an expert legal team behind you can make all the difference.
Because there are multiple types of bankruptcies, it’s critical to know which you can apply for and work the best for you and your business. There are also other things you can do and should be aware of to make this difficult time more manageable.
Schedule a free, no-obligation case consultation with a bankruptcy attorney at Goosmann Rose Colvard & Cramer, P.A., and get your life back!
What Is Bankruptcy?
Bankruptcy is a legal proceeding that occurs when a person or business cannot pay off outstanding debt. Filing for bankruptcy can provide individuals or businesses relief from some debt and creditor harassment while paying off the rest of their debt. Doing so essentially grants people and businesses a second chance. The right to bankruptcy is secured federally, and cases are handled through federal courts.
Types Of Bankruptcies
There are a few types of bankruptcy proceedings available under federal law. However, most individuals and businesses usually rely on one of the following three.
- Chapter 7. Typically the most straightforward and fastest form of bankruptcy. Chapter 7 bankruptcy is usually reserved for individuals, though businesses with few or no assets may qualify. Through this proceeding, unsecured debts, such as credit card balances and medical bills, are disposed of while assets are liquified to pay any outstanding financial obligations. Assets required to be liquidated can include second homes, stocks or bonds, and even non-exempt family heirlooms. Exempt property includes household goods, clothing, tools specific for your work, and a personal vehicle up to a certain value. If an individual’s property is all exempt or does not have significant value, they may end up paying nothing towards their unsecured debt.
- Chapter 11. Chapter 11 bankruptcy is for businesses that want to reorganize, remain in operation, and become profitable once more. Filing bankruptcy with Chapter 11 requires a plan for cutting costs and increasing profitability.
- Chapter 13. Individuals who make too much money to qualify for Chapter 7 and businesses with consistent income may file for Chapter 13 bankruptcy. Under Chapter 13, companies and individuals will create a realistic repayment plan that spans typically over three to five years. In exchange, the debtors may keep their property, including non-exempt assets.
Benefits & Drawbacks Of Bankruptcy
There is nothing to be ashamed of when asking for help when you’re struggling. Filing for bankruptcy can save your home or business, ensure that you’re able to function financially and relieve you of debts and the overwhelming stress that comes with them.
However, filing bankruptcy can also lower your credit and affect your ability to secure a loan, mortgage, or credit card. It can even impact your ability to rent an apartment or buy a home. However, if you’re considering filing for bankruptcy, your credit has more likely than not already been negatively impacted. It is important to note that Chapter 7 filing will stay on your credit report for ten years, and a Chapter 13 will remain there for seven.
Choosing A Bankruptcy Lawyer
Filing for bankruptcy is a huge undertaking, and choosing your bankruptcy attorney shouldn’t be taken lightly. If you’re filing for Chapter 7, you may not even need a lawyer at all, though it can be overwhelming to do all of the work by yourself. For anything more complicated, such as having a mortgage or filing as a business, choose a professional law firm with experience working with your type of case. Be prepared to speak with a few different firms to find one with the expertise required to make you feel comfortable about your prospects.
At Goosmann Rose Colvard & Cramer, P.A., we understand how difficult it can be to go through bankruptcy. We don’t view you as just another case. Instead, we work with you as a person to help answer your questions and address your concerns. If you’re drowning in debt, we are here to throw you a lifeline.
Contact us today for a consultation with our bankruptcy lawyers and get your life back on track!