5 Things You Need to Know Before You File Wilmington Bankruptcy

Submitted by Rachel R on Tue, 07/25/2017 - 10:56am

5 Things You Need to Know Before You File Wilmington Bankruptcy

What you must know about Wilmington bankruptcy

Image Source: Pixabay.com

When you’re in debt, filing Wilmington bankruptcy can be a life-changing solution to deal with obligations you can’t afford. However, choosing to file Chapter 7 or Chapter 13 is a serious decision and not to be taken lightly. It’s best to educate yourself before you commit to bankruptcy for your debt relief, so you know what to expect during and after your bankruptcy.

#1 Bankruptcy Is a Matter of Public Record 

By law, all bankruptcy filings are public record so that means, potentially, your Wilmington neighbors could know that you filed. However, the filings are not on public display, but they are on a website that other people can view if they complete a process to request access to a secured federal website. Usually only lawyers and others with a professional need to access public records sign up for the site.

#2 Bankruptcy can take a few months to a few years.

If you choose Chapter 7 liquidation for your Wilmington bankruptcy, the process lasts just a few months, and then you will enjoy sweeping debt relief on most unsecured debt including medical bills, credit cards, old utility or cell bills, and some older income taxes. With Chapter 13, the process takes three to five years because you’re on a repayment plan to catch you up on delinquent debt.

#3 Bankruptcy Requires You to be Honest and Open

While bankruptcy law offers serious debt relief, it’s also a serious process that requires you to be honest and forthcoming about your income, assets, equity, and debt. If you’re less than honest, you can wind up accused of bankruptcy fraud. From the start, gather all your financial documents to present to your attorney and answer all their questions truthfully to stay out of trouble.

#4 Bankruptcy Offers Benefits as Soon as You File

While the entire Wilmington bankruptcy process takes a few months up to a few years to complete, the protection it offers begins as soon as your attorney files your bankruptcy petition. For instance, if you’re hounded every day by debt collectors, your credit card issuer, or your auto lender, all that must stop, by law, when you file your bankruptcy petition. The “automatic stay” stops debt collections right away.

#5 Bankruptcy Benefits Outweigh the Costs 

To file Wilmington bankruptcy, you will pay filing fees and court costs. There are also attorney fees if you choose to have a lawyer represent you. Consumers usually get much better results using a lawyer than trying to complete the complicated process on their own. Only someone that knows the law, court system and processes can navigate it easily. However, attorney fees are cheaper than your debt.

Choosing Chapter 7 Bankruptcy

There’s also the matter of deciding what type of Wilmington bankruptcy is right for you. If you are current on your mortgage or have no mortgage, Chapter 7 might be best. You can shield a specific amount of equity in your home from creditors in Chapter 7 if you do own your home. Chapter 7 wipes out most unsecured debt including credit cards, medical bills, signature loans, and older income taxes.

If you are behind on your mortgage or auto loan, you should discuss your options with your lawyer. Filing bankruptcy stops the foreclosure process and can allow you time to find a new place to live, to refinance your mortgage, or figure out other options. If you’re behind on your auto loan, you might be able to purchase your car from the lender for the fair market value.

Choosing Chapter 13 Bankruptcy

If you are behind on your auto loan or mortgage and you have equity in these assets you want to protect, Chapter 13 might be the better choice for your Wilmington bankruptcy. This type of bankruptcy sets you up on an installment plan where you pay your regular bills each month (mortgage, auto, utilities, other costs of living, etc.) and also pay the Trustee an installment payment.

That installment payment covers your past-due balances on your mortgage, car loan, alimony, child support, certain income taxes, and other priority debts. At the end of your repayment plan, some percentage of your unsecured debts (credit cards, medical bills, etc.) will be completely discharged. At the end of your plan, you will be current on your debts while also securing some debt relief.

To find out more about the benefits of bankruptcy, contact the Law Offices of John T. Orcutt. Call +1-919-646-2654 now for a free Wilmington bankruptcy consultation at one of our locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro, Garner or Wilmington.

Debts Hurt! Got debt? Need help? Get started below!

Serving North Carolina

  • Charlotte
  • Fayetteville
  • Durham
  • Wilson
  • Greensboro
  • South Raleigh (Garner)
  • Southport (Phone Consults)
  • Wilmington (Phone Consults)

North Raleigh

6616 Six Forks Rd Suite 203 Raleigh, NC 27615 North Carolina

Tel: (919) 847-9750

North Raleigh

Charlotte

7400 Carmel Executive Park Dr Suite 105 Charlotte, NC 28226 North Carolina

Tel: (704) 318-2702

Charlotte

Fayetteville

2711 Breezewood Ave. Fayetteville, NC 28303 North Carolina

Tel: (910) 323-2972

Fayetteville

Durham

1738 Hillandale Road Suite D Durham, NC 27705 North Carolina

Tel: (919) 286-1695

Durham

Wilson

2215 Nash St. NW Wilson, NC 27896 North Carolina

Tel: (252) 234-9194

Wilson

Greensboro

600 Green Valley Road Suite 210 Greensboro, NC 27408 North Carolina

Tel: (336) 542-5993

Greensboro

South Raleigh (Garner)

143 Highway 70 Garner, NC 27529 North Carolina

Tel: (919) 747-4400

South Raleigh (Garner)

Southport (Phone Consults)

4320 Southport Supply Road SE Suite 300 Southport, NC 28461 North Carolina

Tel: (910) 218-8682

Southport (Phone Consults)

Wilmington (Phone Consults)

4320 Southport Supply Road SE Suite 300 Southport, NC 28461 North Carolina

Tel: (910) 447-2987

Wilmington (Phone Consults)