Submitted by Rachel R on Fri, 02/16/2018 - 8:52am
Pros and cons of Wilmington bankruptcy
Image by Hanny Naibaho via Unsplash
The decision of whether or not to file Wilmington bankruptcy is not the easiest. It usually comes after years of debt stress, increasingly frustrating financial circumstances, and harassment from debt collectors. Although filing bankruptcy means acknowledging that you’re unable to pay your debts, it is a game-changer that can give you peace of mind and a brighter financial future.
Some very successful people like Henry Ford and Walt Disney opted for bankruptcy, got a fresh start, and went on to remarkable success. Bankruptcy might not be the best answer for every debt situation but, for many consumers, it’s exactly the remedy that can help solve their problems and get them back on a good financial path.
Before you decide to file bankruptcy, here are some pros and cons to consider.
No matter which chapter of consumer bankruptcy you file, you can't keep your credit cards. Many people shudder at the idea of no plastic in their wallet, but it’s inevitable. Even if you don’t list a credit card in your bankruptcy petition, the card issuer will know when it pops up on your credit report and they will close your account.
You can declare bankruptcy more than once, but there are waiting periods and how long you wait depends on what chapter you filed and whether you got a discharge. In some cases, filing now is better, and in other cases, waiting is better. Some filers may choose to file one chapter and then another back to back, but this can be tricky.
When you file bankruptcy, it becomes part of the public record of federal cases, and it goes on your credit report. There is no list tacked to the courthouse door, but if someone has access to the PACER federal court case register, they can see your filing and some of the information in your petition. This access is limited, so most people won’t know unless you tell them.
Many people have negative thoughts about bankruptcy, and this is something you’ll need to ignore or overcome. In fact, bankruptcy isn’t something that’s usually driven by bad decisions or overindulgence but rather by unexpected expenses or job loss. Wilmington bankruptcy is a solution to a problem, not a problem in and of itself. It’s all in your mindset.
Many debts can be 100% discharged in Wilmington bankruptcy, including credit cards and medical bills if you choose Chapter 7. With Chapter 13, unsecured debts like this can be drastically reduced, often to pennies on the dollar. You can’t wipe out your car loan or mortgage unless you give up the asset (house or vehicle) and you can't discharge recent income taxes. Student loans are a maybe.
Although Wilmington bankruptcy will not help with all types of tax liabilities, it does help with some. Older income tax debts may be discharged if they were outstanding for three years, if you filed the returns on time, and meet other criteria. Recent income taxes, payroll tax liabilities, and collected sales and other similar taxes are not dischargeable.
If you’re late on bills and stacked deep in debt, your credit score is already suffering. Filing bankruptcy helps you ditch the debt and stop the FICO free fall. The sooner you file, the sooner you stop the damage and can get on a path to rebuild your credit. Within a few months after you get your bankruptcy discharge, you can start re-establishing your credit and improving your score.
North Carolina bankruptcy exemptions protect a generous amount of equity in assets including home equity, your vehicle, retirement accounts, personal items, home furnishings, and even some cash in the bank. If you’re facing creditor lawsuits that might put liens on your assets, bankruptcy can also shut those down. In most bankruptcy cases, no assets are lost.
A clean slate isn’t something we get too often in life, but Wilmington bankruptcy represents just that. When your financial problems become overwhelming, and you realize you can’t dig yourself out without intervention, bankruptcy may be the solution that helps you get a fresh start and allows you the chance to make things better. It can be life-changing.
When you’re stuck with bills you can’t pay and obligations pile up, debt collector harassment is inevitable. Some bill collectors follow the law, but others cross the line, harass you, call nonstop on your cell and at work, and make your life miserable. The moment your lawyer files your bankruptcy case, by law, all contact must stop. This offers instant peace of mind.
If you’re deep in debt and unsure what to do about it, it may be time to consider bankruptcy. To find out if your circumstances are a fit for Chapter 7 or 13, contact a local North Carolina bankruptcy expert to discuss your debt dilemma.
Read reviews from satisfied clients then contact the Law Offices of John T. Orcutt. Call +1-919-646-2654 now for a free Wilmington bankruptcy consultation at one of our convenient locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro, Garner or Wilmington.
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