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How Can You File Chapter 7 Bankruptcy?

Filing Chapter 7 Bankruptcy in North Carolina

Bankruptcy is a legal process that clears your debts so that you can get a fresh start. It is a lawful way to help individuals with mounting debt to reorganize their debts and finances. Bankruptcy can be complicated, but you don’t have to go through it alone. A reliable Raleigh bankruptcy attorney can help you through the whole bankruptcy process. Consult with our bankruptcy law firm in North Carolina today!

There are different types of bankruptcy available for individuals and families in North Carolina. Chapter 7 is the most common type of bankruptcy. Also known as liquidation bankruptcy, it helps individuals get a debt discharge by selling all or part of their assets to repay their debts.

If you’re facing financial difficulties and need help managing your debts, bankruptcy can help you get a fresh start. 

Chapter 7 Bankruptcy and the Automatic Stay

Chapter 7 is a liquidation type of bankruptcy because it discharges most of your debts. Once you file bankruptcy, the automatic stay takes place. It can prevent (at least temporarily):

  • Utility disconnections
  • Foreclosures
  • Evictions
  • Car repossessions
  • Collection of overpayment of Social Security benefits
  • Wage garnishments

However, there are some instances where the automatic stay can’t help:

  • Certain tax proceedings and audits from the IRS
  • Child support payments
  • Alimony
  • Criminal proceedings
  • Pension loans

If you also had multiple bankruptcy filings the previous year, the court will terminate the automatic stay after 30 days. Unless you, the bankruptcy trustee, or the creditor requests for the stay to continue.

Chapter 7 Bankruptcy Trustee

The court also takes legal possession of your properties by appointing a bankruptcy trustee to your case. A chapter 7 bankruptcy trustee reviews your financial records and assets and oversees your bankruptcy case. They will sell your non-exempt properties (properties that the bankruptcy court won’t let you keep) and use the proceeds to pay your debts.

When Can I FIle Chapter 7 Bankruptcy?

Many factors need to be considered when filing chapter 7 bankruptcy. Chapter 7 bankruptcy might be right for you if:

  • Your income is below North Carolina’s median level of income.
  • You don’t have enough disposable income to repay your debts
  • Your debts are equal to more than half of your yearly income.
  • It will take five years or more to repay your debts.

How Do I Qualify For Chapter 7 Bankruptcy in North Carolina?

A Chapter 7 bankruptcy might not work for everyone. There are a few qualifications you need to meet before you can file for bankruptcy under Chapter 7:

  • Take credit counseling classes from an accredited credit counseling agency.
  • Pass the bankruptcy means test. Your monthly income should be less than the median income in North Carolina. (If you don’t pass this test, you may opt to file for bankruptcy under Chapter 13).
  • You didn’t file a Chapter 13 bankruptcy in the past six years.
  • You didn’t file a chapter 7 bankruptcy in the past eight years. 

If you filed either bankruptcy and your case was dismissed by the bankruptcy court, you need to wait at least 181 days before you can file again. Consult with our reliable Raleigh bankruptcy attorneys today to know how to help successfully file bankruptcy in North Carolina.

How Often Can You File Bankruptcy in North Carolina?

In North Carolina, there’s no specific limit on how many bankruptcies you can file. However, you cannot immediately file bankruptcy after finishing one. 

If you’ve previously filed for bankruptcy, you need to wait a few years before you can file bankruptcy again. Additionally, you are also expected to finish your previous bankruptcy successfully.

The United States Bankruptcy Code sets a specific timeline for when you can file bankruptcy again. This depends on the bankruptcy chapter you filed.

If you previously filed a Chapter 7 bankruptcy and want to file for bankruptcy under the same chapter again, you must wait for eight years before filing bankruptcy.

Consult a Trusted Raleigh Bankruptcy Attorney

Bankruptcy is a complex and tedious process. It requires the knowledge and experience of bankruptcy attorneys who can help you navigate the bankruptcy process with ease. 

Bankruptcy can help you get a fresh start. If you need to file bankruptcy to get back up on your feet, our Raleigh bankruptcy attorneys can help. Don’t hesitate to seek legal assistance from our North Carolina bankruptcy law firm. Schedule a consultation with us today!

Raleigh Bankruptcy Attorneys

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