Understanding Chapter 7 Bankruptcy And What You Can Keep

For most North Carolina residents, filing for bankruptcy is a daunting process that can leave them feeling like there’s no end to their financial hardship. In these situations, Chapter 7 bankruptcy can provide relief, allowing individuals to get a fresh start and have most of their debts discharged. However, many people are unsure of what assets they are allowed to keep and what they’ll lose when they file. If you’re considering filing for Chapter 7 bankruptcy in North Carolina, it’s important to understand what you can keep and what you can’t.

What Is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, also known as “liquidation,” is a legal process where the debtor’s assets are collected and sold, with the proceeds going towards repayment of their debts. Once the assets are sold, any remaining debts are usually discharged, except for certain debts like student loans and taxes.

What Can I Keep And What Will I Lose?

While North Carolina has a relatively generous list of exemptions, there are still certain assets you may lose when you file for Chapter 7 bankruptcy. Some of the assets you can typically keep include a primary residence, a car, household goods and appliances, retirement accounts, and tools of the trade. However, there are limits to these exemptions, so it’s important to speak with a bankruptcy attorney to determine what you may be able to keep.

Steps To File For Chapter 7 Bankruptcy:

The first step in filing for Chapter 7 bankruptcy is to meet with a bankruptcy attorney and determine if it’s the right option for you. If you decide to proceed, you’ll need to take a credit counseling course and gather all the necessary financial documents. Once these are complete, you’ll file a petition with the bankruptcy court, which will trigger an automatic stay on all collection actions against you. You’ll also be required to attend a meeting of creditors, where you will answer questions under oath regarding your finances.

How Can The Law Office Of Calvin Craig Help?



At The Law Office of Calvin Craig, we understand the stress and anxiety that can come with financial hardship. Our experienced bankruptcy attorneys are committed to providing compassionate and effective legal representation to North Carolina residents. Our services include bankruptcy filings, credit counseling, debt consolidation, and asset protection, so you can get the fresh start you deserve.

Filing for Chapter 7 bankruptcy can be a complex process, but it can also provide much-needed relief for those struggling with debt. Knowing what assets you can keep and what you’ll lose is crucial in determining if it’s the right option for you. With The Law Office of Calvin Craig on your side, you can trust that you’ll receive the guidance and support you need throughout the entire process. We urge you to seek legal counsel if you’re considering bankruptcy, and to take the necessary steps to protect your financial future