7 Signs It Might Be Time to Consider Wilmington Bankruptcy

Wilmington bankruptcy may help you

Image Source: Flickr User James Willamor

If you’re a Wilmington, North Carolina consumer struggling with debt, you can muddle along and try to dig yourself out of your financial crisis, or you can consider a more serious debt intervention like bankruptcy. If you’re wondering if Wilmington bankruptcy is right for you, here are seven signs that could tell you this is an option you should consider.

#1 Will Your Debt Take Years to Pay Off?

If you’ve got so much debt, aside from your mortgage and auto loan, that you can’t pay if off within a year or two, Wilmington bankruptcy might be the answer you need. If there’s no way to cut your expenses or increase your income to deal with the debt, dumping the debt might be a better course of action. Chapter 7 bankruptcy can discharge medical debts, credit cards and personal loans within just a few months. Chapter 13 bankruptcy allows you time to catch up on past-due bills.

#2 Are Your Credit Cards Maxed and You’re Paying Minimums?

If your credit cards are maxed out and you can only pay the minimum amount due, it can take you years to pay off the debt. Along the way, you’ll pay hefty interest charges and if you ever run late, you can exceed your credit limit which can trigger more fees. Maxed out credit cards can quickly spiral into a financial disaster. Chapter 7 bankruptcy can wipe out this debt fast and Chapter 13 repayments can see you pay pennies on the dollar for credit card debt.

#3 Do You Owe More on Your Mortgage Than Your Home Is Worth?

If you owe more on your mortgage than your home’s current market value, that’s called being “upside down” on your mortgage or “under water” on the loan. This can be a tough situation to deal with because you can’t sell your home unless you can pay off the overage. Your mortgage lender might work with you on a short sale, but they don’t have to. With Chapter 7 bankruptcy, you can surrender the home and walk away with no debt and find someplace more affordable to live.

#4 Is Your Vehicle Worth Less Than the Loan on It?

If your vehicle is worth less than your auto loan, you have several options with Wilmington bankruptcy. First, using Chapter 7 bankruptcy, you can pay the auto lender the fair market value of the car and keep it rather than paying the greater amount that represents the balance owed on the loan. Second, with Chapter 7, you can surrender the vehicle and discharge the debt. Third, with Chapter 13, you may get a cram down which can lower the balance of the loan and the interest rate.

#5 Are You Behind on Your Mortgage or Auto Loan?

If you’re behind on your mortgage or auto loan, you may have been threatened with foreclosure or repossession. Chapter 7 and Chapter 13 may stop these actions. With Chapter 7, it’s just temporary unless you cure the arrears but it can be enough time for you to find another place to live or another means of transportation. With Chapter 13, your repayment plan will allow you time to catch up the past dues while also making your current loan installment payments.

#6 Do You Owe Back Income Taxes?

Some back income taxes can be discharged in Wilmington Chapter 7 bankruptcy. If you filed your tax returns on time and the debt is older than two years, you might be able to discharge it as part of this form of bankruptcy. With Chapter 13 bankruptcy, you can include the back taxes in your debt repayment plan. For certain taxes, you might be able to negotiate with the IRS and leverage the fact that you’re in bankruptcy to get a more favorable settlement deal.

#7 Are You Being Harassed by Debt Collectors?

Debt collectors sometimes behave and sometimes they do not. Some will harass you at all hours, call you at work, home, and on your cell. If you’re a Wilmington consumer being hassled by unscrupulous debt collectors, Chapter 7 and Chapter 13 bankruptcy will both put a stop to all collections activity as soon as your attorney files your petition. If debt collectors continue to bother you after your petition is filed, they can be fined for breaking federal bankruptcy law.

If you recognize several of these sign. Wilmington bankruptcy might be a good solution for your financial problems.To find out more about the benefits of bankruptcy, contact the Law Offices of John T Orcutt. Call +1-833-627-0115 now for a free Wilmington bankruptcy consultation at one of our locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro or Wilmington.