A Chapter 13 bankruptcy is available for low cost up front, and allows people with good jobs to delay a foreclosure or paying back a tax debt. Here are some features which help people in the Asheville area:
While a Chapter 7 filing requires someone to pay the entire bankruptcy attorney fee up front, many attorneys will allow the attorney fee to be paid over time in Chapter 13.
While a Chapter 7 filing requires someone to get current on their mortgage (or surrender the house), a Chapter 13 filing allows someone to catch up on missed payments over time.
While a Chapter 7 filing requires someone to continue paying on their second mortgage, a Chapter 13 filing allows them to pay only a small fraction (10% in Asheville) if it is completely underwater.
While IRS tax debts are still due inside one year in Chapter 7, someone can spread those payments out over 5 years in Chapter 13.
The decision on the type of relief, timing of a filing, and overall strategy to deal with debt problems are best discussed with an experienced professional. For those of you in Western North Carolina, I would be pleased to help with a free consultation.