Navigating Chapter 7 Bankruptcy In North Carolina

Filing for bankruptcy is a serious decision that should not be taken lightly. When filing for bankruptcy, it is important to understand the different types of filings and how they can impact your financial situation. For many individuals facing overwhelming debt, filing for Chapter 7 Bankruptcy may be the best option. In this blog post, we will explain the benefits of filing for Chapter 7 Bankruptcy and what you can keep after you have filed. We will also address any other questions you may have about bankruptcy in North Carolina. 

What Is Chapter 7 Bankruptcy?

Chapter 7 Bankruptcy is one of two common types of bankruptcies available to individuals in North Carolina. It allows individuals to discharge their unsecured debts such as credit cards, medical bills, and personal loans. To qualify for Chapter 7 Bankruptcy, an individual must pass a “means test” which determines if the individual has enough disposable income to repay some or all of their debt. 

Benefits Of Filing For Chapter 7 Bankruptcy

Filing for Chapter 7 Bankruptcy has several benefits over other forms of bankruptcy such as stopping creditor harassment and wage garnishments immediately after filing. Additionally, it eliminates almost all unsecured debts without having to pay them back and provides a fresh start financially with no residual debt burden hanging over your head. Lastly, if you retain a qualified attorney such as The Law Office Of Calvin Craig, you can rest assured that your case will be handled professionally and efficiently so that you are able to get on with your life free from debt.

What Can I Keep After Filing?

When filing for bankruptcy, there are certain assets that cannot be touched by creditors or the court system such as homestead property (up to $35k), retirement accounts (up to $1m), bank accounts ($5k), vehicles (up to $6k), tools used in trade ($2k) and more depending on your individual situation. Additionally, most states provide exemptions from seizure when filing for chapter 7 bankruptcy which allow individuals to keep certain items even if they are worth more than the exemption amount such as jewelry up too $1k or family heirlooms up too $2k depending on state laws. 

Will Filing Affect My Job?

The short answer is no; however it is important to note that certain employers may view bankruptcy filings negatively due to company policies or because it could damage their reputation with customers or vendors so it is always best to check with your employer before making any decisions about filing for chapter 7 bankruptcy.

Whether you are just beginning the process or already have consulted an attorney from The Law Office Of Calvin Craig about filing for chapter 7 bankruptcy in North Carolina, it is important to understand what type of debt relief options are available and how they can affect your life going forward both positively and negatively before making any decisions about proceeding with a case.. By understanding the process and consulting experienced attorneys like those at The Law Office Of Calvin Craig you can ensure that whatever decision is made regarding chapter7 bankruptcy fits into your long term financial goals and plans going forward into the future.