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Chapter 13 Bankruptcy

Chapter 13 Bankruptcy Attorney in Raleigh, North Carolina

If you’re at risk of losing your home to home foreclosure or having your car repossessed, filing for Chapter 13 bankruptcy may help you prevent these things from happening. You can get bankruptcy protection under Chapter 13 if you need help paying off your debts and managing your finances. A Chapter 13 bankruptcy allows you to develop a realistic debt repayment plan without worrying about your creditors. Consult our chapter 13 bankruptcy attorney in Raleigh, North Carolina, today to know how to help.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a type of personal bankruptcy that helps debtors repay their debts through a manageable debt repayment plan. Also known as a “wage earner’s bankruptcy,” Chapter 13 allows individuals who have regular income to repay their debts in a span of three to five years. 

Under this chapter, debtors can propose a debt repayment plan to make incremental payments to creditors. If the debtor’s monthly income is less than North Carolina’s median income, the plan will last for three years unless the court allows a more extended period. If the debtor’s income is higher than the applicable median, the plan will last for five years. During this time, the court prevents creditors from making any debt collection efforts.

 

The Advantages of Filing Chapter 13 Bankruptcy

 

Stop Foreclosure

Chapter 13 bankruptcy provides North Carolina residents with several advantages over liquidation bankruptcy under Chapter 7. Perhaps most significantly, Chapter 13 bankruptcy helps stop foreclosure. A debtor can save their homes and cure delayed mortgage payments through a debt repayment plan. 

Repay Secured Debts

Another advantage of filing Chapter 13 is that it helps individuals repay their secured debts in an extended period through the Chapter 13 repayment plan. Doing this may also lower the payments that a debtor needs to make.

Loan Consolidation

Chapter 13 also provides an advantage for debtors by helping them consolidate their loans by making their loan payments to a Chapter 13 bankruptcy trustee who will then distribute the payments to creditors. Bankruptcy filers won’t have direct contact with creditors while finishing their debt repayment plan under Chapter 13. 

Relief from Student Loans

A Chapter 13 bankruptcy also provides relief from student loan collections for the duration of the debt repayment plan (which lasts for up to three or five years).

Consumer Debt Protection

Chapter 13 also has a special provision that protects third parties who may be liable to the debtor on “consumer debts.” This protects co-signers.

Our Raleigh, NC bankruptcy attorneys have helped individuals and families in North Carolina deal with their debt through bankruptcy for over ten years. Consult our Raleigh bankruptcy lawyers today. Our knowledgeable Chapter 13 bankruptcy attorney can help assess your financial situation and help you weigh your options.

Other Benefits of Filing Chapter 13

Other benefits may include:

  • Protection from taxing authorities collection unpaid taxes
  • Stripping off junior mortgages
  • Discharge of non-marital support obligations
  • Discharged of unsecured debts
  • Retain properties and assets

If you’re considering filing for bankruptcy under Chapter 13, consult our reliable and experienced Chapter 13 bankruptcy attorneys in North Carolina. Our bankruptcy lawyers will assess your situation and discuss your options with you. We will diligently review your case and provide you with the best solution possible.

Who can apply for Chapter 13 bankruptcy?

Self-employed individuals or those with small businesses can apply for Chapter 13 bankruptcy (partnerships or corporations may not apply for chapter 13 bankruptcy protection) in North Carolina, as long as your unsecured debts and secured debts are below a certain amount. These amounts are adjusted regularly to reflect changes in the consumer price index, so it is best to seek legal advice from a reliable Chapter 13 bankruptcy attorney to know more about this. 

However, you cannot file for Chapter 13 bankruptcy or any other chapter if a bankruptcy petition was dismissed in the last 180 days due to:

  • The debtor’s failure to appear in court
  • The debtor’s failure to follow the court’s orders
  • The bankruptcy petition was dismissed after the creditors sought bankruptcy relief in court. 

Additionally, a debtor may only apply for bankruptcy if they have taken a credit counseling course from a certified credit counseling agency within 180 days before filing.

How much does it cost to file Chapter 13 in North Carolina?

If you’re planning to file for bankruptcy, there are a few things you need to consider:

  • Bankruptcy filing costs and fees
  • Attorney fees
  • Administrative costs

The standard cost of a Chapter 13 bankruptcy in Missouri is around $1,500 up to $4,000. However, the actual amount you have to pay greatly depends on your specific situation. If you want to know the estimated costs of filing a bankruptcy, consult one of our trusted North Carolina Chapter 13 bankruptcy attorneys today. Our lawyers can help individuals, families, and businesses in Burlington, Cary, Chapel Hill, Durham, Elizabeth City, and Fayetteville.

What is the bankruptcy filing process in Chapter 13?

A Chapter 13 bankruptcy allows individuals with a regular income to propose a debt repayment plan to repay all or most of their debts. These payment plans can last for up to five years. 

Generally, the bankruptcy filing process includes:

Determining whether you qualify for Chapter 13.

A Chapter 13 bankruptcy has a debt limit for individuals both for secured and unsecured debts. 

The Automatic Stay

If you qualified and filed for bankruptcy, the automatic stay immediately takes place. This protects a debtor from all types of debt collection efforts from creditors. 

As long as the stay is in effect, creditors and debt collectors may not initiate lawsuits, wage garnishments, home foreclosure, or car repossession. Creditor harassment such as making non-stop phone calls are also prohibited. 

Proposing a Debt Repayment Plan

A debtor must also file a detailed bankruptcy repayment plan that shows how a debtor plans to repay their debts in a span of three to five years. A debtor must diligently follow this plan and consistently make payments on time. Otherwise, a debtor may lose the bankruptcy protection and risk losing their home or other properties. 

Attend a Credit Counseling Course

A bankruptcy filer must attend credit counseling or financial management training before their debts can be discharged. 

341 Meeting

Between 20 and 50 days, after the debtor files the chapter 13 petition, the chapter 13 bankruptcy trustee will hold a meeting of creditors. During this meeting, the bankruptcy trustee places the debtor under oath, and both the creditors and bankruptcy trustee may ask questions. The debtor must attend the conference and answer any questions regarding their financial situation and the proposed terms of the repayment plan. Our Chapter 13 bankruptcy attorneys will help you answer any questions throughout the meeting and help you make adjustments to your plan if necessary. 

Confirmation of the Repayment Plan

The North Carolina bankruptcy court must confirm the plan you submitted. Although most debt repayment plan confirmations aren’t contested, creditors or bankruptcy trustees may object to the plan, which would start a hearing. Our experienced Chapter 13 bankruptcy attorneys will provide not only thorough legal advice but also provide aggressive representation in court. Schedule a consultation with our bankruptcy lawyers today!

Converting a Chapter 13 to a Chapter 7 Bankruptcy Case

If the bankruptcy court doesn’t approve the repayment plan, you may choose to file a modified repayment plan or convert your bankruptcy case to a Chapter 7 liquidation bankruptcy. Our Chapter 13 bankruptcy attorney can assist you in converting your bankruptcy case. Schedule a consultation with us to know how we can help.

 

Types of Debts in North Carolina

 

Priority Debts 

The U.S. bankruptcy law gives priority debts special status. These include most taxes and bankruptcy filing costs.

Secured Debts

Secured debts are those with collateral, such as a home or a car. For closed claims, creditors can take back or repossess the property if the debtor fails to pay the debts. To keep the property used as collateral, the debtor must repay the creditor at least the face value of the collateral. 

Unsecured Debts

Unsecured claims are debts without collateral. These includes:

  • Unpaid medical bills
  • Credit card bills
  • Personal loans
  • Some Student Loans

A debtor doesn’t need to pay non-priority unsecured debts in full. However, a debtor’s disposable income must be used to produce these debts over a certain period. Unsecured creditors must at least receive the amount they would have received if the debtor filed for a Chapter 7 liquidation bankruptcy. 

Consult our North Carolina Chapter 7 Bankruptcy Attorney Today

Filing for Chapter 13 bankruptcy in North Carolina can be a complicated and overwhelming process. To help you navigate the bankruptcy process, our experienced and professional Chapter 13 bankruptcy attorneys in North Carolina can assist you with all the necessary paperwork and documentation. Schedule a case evaluation with our Chapter 13 bankruptcy attorneys at Cameron Bankruptcy Law today!

Raleigh Bankruptcy Attorneys

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