Bankruptcy eliminates most kinds of debt. This includes credit cards, medical debt, and many judgments. In some circumstances, tax debts can also be discharged. In exchange, you are required to be completely open and honest with the Bankruptcy Court about your financial situation.
Over 90% of bankruptcy cases can be related to job loss, divorce, or medical problems. The federal bankruptcy system was designed to provide hard workers who have faced unfortunate circumstances another opportunity at financial success.
Millions of Americans struggle with second thoughts about who to pay, how much to pay, and when to pay creditors each month. Unfortunately, hard workers who want to solve their financial problems themselves can end up draining savings and retirement accounts without finding a permanent solution to their debt problems.
A rule of thumb is if you cannot reasonably expect to pay off unsecured debts (credit card, medical, personal loans, etc.) within 3 years, you should consider a bankruptcy case. If you are struggling to make monthly minimum payments, or have stopped making payments altogether, you should seek professional advice as soon as possible. Understanding your options is essential, and you will be treated with the dignity and respect you deserve.
Help is available both in bankruptcy and outside. During a free, initial bankruptcy consultation, our goal is to provide you with information on your options in a Chapter 7 or Chapter 13 bankruptcy, in debt settlement, and by simply taking care to protect your assets without a bankruptcy filing. We strongly encourage you not to count on the advice of friends or family who have great intentions, but may deliver bad advice about your next best financial option.
To get started, call 828-232-4949 and ask to be put on our calendar. Or, begin by reading below about some common questions regarding bankruptcy:
What Is the role of an Asheville NC Bankruptcy Attorney?
The key ingredient to any successful bankruptcy case is full disclosure. The Court forgives debt in exchange for a person being honest about their financial situation. We can help you protect your assets and discharge your debts the right way.
Watch this video summary from the U.S. Bankruptcy Court: Bankrupcty Basics.
Which Type of Bankruptcy Should I File?
Chapter 7 bankruptcy eliminates many of your debts, and most clients we represent are allowed to keep all of their property. The process takes about four months, and commonly requires only one trip to the federal courthouse in Asheville for a meeting which takes approximately 10 minutes.
In Chapter 13 bankruptcy, you use your income to pay some of what you owe your creditors over time — from three to five years. This type of filing might work well for clients who are behind on house or car payments. Your repayment plan will describe in detail how you will pay each of your debts, and which debts will be discharged.
Watch this video summary from the U.S. Bankruptcy Court: Types of Bankruptcy.
What are the bankruptcy exemptions near Asheville and in Western North Carolina?
The bankruptcy exemptions were recently expanded in North Carolina to include: $35,000 equity in a homestead, $3,500 in a motor vehicle, $5,000 in household items, and a $5,000 wildcard to be used for other property. These amounts typically double for joint filers.
How does bankruptcy work?
Initially, filing either type of bankruptcy stops foreclosures and creditor collection activities when the bankruptcy court grants an “automatic stay.” Ultimate relief is granted at the end of the case when the bankruptcy court enters a discharge which eliminates or adjusts your responsibility to pay certain debts. Many times, the filing of a bankruptcy case will eliminate any future contact with creditors.
Many honest people in Western North Carolina allow a sense of guilt or pride to prevent them from contacting our office. It costs nothing for you to determine whether filing bankruptcy is the right step for you and your family’s well being. Over a million Americans filed bankruptcy last year, and the laws were written to help honest people who have been unfortunate financially.
Many people wait too long to file a bankruptcy case for fear of damaging their credit beyond repair. They are often surprised to find out bankruptcy can be a positive first step to repairing their credit score. The whole point of the bankruptcy rules is to provide people with a fresh start.
Part of my job is to come up with a plan which will put you in a better financial position. We will discuss costs associated with filing, including the attorney fee, and will only recommend a bankruptcy filing if it will end up saving you money.
Want more information about your rights in bankruptcy? Visit our bankruptcy blog for answers to common questions or learn basic information about bankruptcy in this section. Not finding what you are looking for? Send us an email and we can answer your specific questions. If you reach out for help, you will be treated with dignity and respect.
The vast majority of bankruptcy filers keep all of the property they own while eliminating their debts. The law says you own property that creditors cannot touch. However, you can be sure the credit card, collection and mortgage companies have lawyers who are aggressively seeking as much of your money as they legally can. It only takes a few minutes to determine how to defend your rights. Click the blue button on the left or call 828.232.4949 to get started.
*The Fitzgerald Law Firm is a designated Debt Relief Agency by the U.S. Congress. We take great pride in representing consumers in bankruptcy proceedings.