How to Qualify for Chapter 7 Bankruptcy in North Carolina

If you are struggling with overwhelming debt in Raleigh, North Carolina, you may be wondering if Chapter 7 bankruptcy could be a solution. Chapter 7 bankruptcy offers a fresh financial start by eliminating most unsecured debts. However, not everyone qualifies automatically. At the Law Office of Calvin Craig, we help Raleigh residents navigate the bankruptcy process with clarity and confidence. Here's what you need to know about qualifying for Chapter 7 bankruptcy in North Carolina.

Understanding Chapter 7 Bankruptcy

Chapter 7 bankruptcy, sometimes called "liquidation bankruptcy," allows individuals to discharge debts like credit cards, medical bills, and personal loans. In exchange, certain non-exempt assets may be sold to repay creditors. Fortunately, many people can keep most, if not all, of their property through exemptions allowed under North Carolina law.

The Means Test Requirement

One of the primary qualifications for Chapter 7 bankruptcy is passing the "means test." This test evaluates your income and compares it to the median income for a household of your size in North Carolina.

• If your income is below the median: You automatically qualify for Chapter 7.
• If your income is above the median: Further calculations will determine if you have enough disposable income to repay creditors under a Chapter 13 repayment plan instead.

The means test considers your income over the six months prior to filing, as well as certain allowed expenses like housing, utilities, and transportation.

Other Eligibility Requirements

In addition to the means test, there are a few other qualifications for Chapter 7 bankruptcy:

• Previous bankruptcy filings: If you received a Chapter 7 discharge within the past eight years, you may not be eligible.
• Completion of credit counseling: You must complete a credit counseling course from an approved agency within 180 days before filing.
• Honesty and accuracy: Providing false information or attempting to hide assets can disqualify you and potentially lead to criminal penalties.

How the Law Office of Calvin Craig Can Help

Filing for Chapter 7 bankruptcy is not just about filling out forms—it involves careful legal analysis and strategic planning. At the Law Office of Calvin Craig, we offer personalized legal assistance to Raleigh residents considering bankruptcy. We will review your financial situation, guide you through the means test, and help protect your assets wherever possible.

Our goal is to make the process as smooth and stress-free as possible, so you can move forward with confidence toward a brighter financial future.