Chapter 7 Bankruptcy – What it can do for you and how the process works
Chapter 7 Bankruptcy is designed to give individuals a fresh start by wiping the slate clean. Once you file for Chapter 7, your creditors must immediately stop all collection efforts, including collection letters, phone calls, repossessions, garnishments, and lawsuits. Known as a liquidation bankruptcy, in a Chapter 7 case, a trustee is appointed to review your case and determine whether there are any assets available for liquidation in exchange for relief from most types of debts. This may sound concerning but with North Carolina’s exemption scheme, most individuals who file chapter 7 bankruptcy normally retain all of their assets
Generally, Chapter 7 bankruptcy discharges most of the common types of debt such as: credit cards, medical bills, deficiency balances resulting from the sale of a repossessed car or foreclosed mortgage, unsecured personal loans, store accounts, trade or vendor debt, personal liability resulting from the guarantee of another’s debt, and certain kinds of tax obligations. There are some types of debt that cannot be discharged through a Chapter 7, including student loans, back child support, alimony payments, certain recent tax obligations, criminal restitution, debt incurred through fraud, debt incurred by defalcation of fiduciary duty, and debts incurred by willful and malicious injury.
In Chapter 7, there is a potential for the loss of non-exempt assets when filing bankruptcy. It is through the liquidation of non-exempt assets that the trustee will generate funds that can be used to pay some portion of the claims of creditors. The attorneys at Pierce Law Group will look at the property that you’ve worked hard to get, and help you understand what property you are allowed to keep.
Why Pierce Law Group?
A thorough knowledge of bankruptcy law is needed to determine whether bankruptcy would be best for your particular situation and which type of bankruptcy would be most appropriate given your particular financial situation. An experienced attorney at Pierce Law Group is available to help you to understand your rights and review your options before and during the Chapter 7 Bankruptcy process. If you are having financial trouble, and are thinking about filing Chapter 7 bankruptcy, please do not hesitate to contact the attorneys at Pierce Law Group.