Can you file Chapter 7 bankruptcy? Rules to know

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It’s 2017 and a good time to think about doing some cleaning in your life. Chapter 7 bankruptcy may help you. The new year is the perfect time to reorganize your home, your life, and your finances. If you’re struggling with debt you can’t afford, living paycheck to paycheck, and being hounded by debt collectors, bankruptcy might be the best way out of your financial mess.

Chapter 13 repayment plans can change during your bankruptcy

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Chapter 13 lasts much longer than a Chapter 7 which is usually filed, processed and discharged within just a few months. A repayment plan will last, at a minimum, three years, and five years at a maximum. Most repayment plans will run the full five years to make plan payments the most affordable and to allow you to get caught up on past due balances on your secured debt and service a portion of your unsecured debt as well. But you should know that the repayment plan approved won't necessarily stay the same through those three to five years – particularly if your salary changes.

How is disposable income calculated in Chapter 13?

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When you get behind on your bills, it can be hard to catch up. And, unfortunately, some creditors won't work with you to let you get caught up on back balances. If this is the situation you find yourself in, filing Chapter 13 bankruptcy may be a good solution for you. There is no income cap on a Chapter 13 filing, nor is there a means test you have to pass to be able to file. But what is important to getting your Chapter 13 repayment plan approved is your disposable income in comparison to your debts.

Should you keep or toss your paperwork?
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It seems like life is full of papers we don’t need – junk mail, receipts for things we won’t return, school papers, paycheck stubs. For a society that’s trending toward paperless, we’ve got a long way to go. But what about bankruptcy papers, including your petition, discharge, and schedules? How long should you keep those? Here’s a hint – they are as important as your will!

By Edward C. Boltz

As we move through this surprisingly snowy Holiday Season here in North Carolina,  all of us at the Law Offices of John T. Orcutt want to wish everyone one of our clients,  friends and colleagues a Merry Christmas, Happy Holidays and a wonderful New Year!  

How many bankruptcy cases can you file?

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Some things are once-in-a-lifetime experiences for most people. Climbing Mount Everest or getting married are common "one and done" occurrences. Some other things you only want to do once (or never), like heart surgery. But how about bankruptcy? Ideally, Wilmington bankruptcy should be one and done, and you get Chapter 7 debt relief and need never repeat the process. But if you wanted (or needed) to file Chapter 7 bankruptcy again, can you?

If your Chapter 13 case gets tossed, what's next?

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Greensboro bankruptcy for consumers includes the choice of Chapter 7 (liquidation) or Chapter 13 (repayment). If you’re behind on your auto loan or mortgage and you want to keep the asset, usually Chapter 13 better meets those goals. With Chapter 13, you commit to a repayment plan that lasts three to five years and intends to catch you up on secured debt arrears. But sometimes, consumers can’t keep up with their payments or don’t follow the court’s instructions, and it dismisses your bankruptcy case. What then?

What to do after Wilmington bankruptcy

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When you choose Wilmington bankruptcy to deal with a debt dilemma, it can help you get a fresh start. Filing bankruptcy stops debt collector harassment, foreclosure, and repossession. From there, it opens doors to a better financial future but only if you make the most of it. Here are seven tips to best leverage this new lease on life.