Disabled and in debt in Garner? Bankruptcy may help
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Most people that file for bankruptcy do so because a major life event wrecked your finances. If you’re a Garner, North Carolina, resident and the reason your finances are off-track is because you suffered an accident or have an illness that has left you with a disability, bankruptcy might help you get a fresh start. For those with a long-term or permanent disability that prevents them from working as they once did, it can be hard on the wallet. Here are some things to know about disability and Garner, NC, bankruptcy.
#1 Disability Payments Are Exempt in Bankruptcy
If you are partially or totally disabled from your Garner job, you may be eligible for disability payments either through worker’s compensation, your employer, from the federal government if you were a federal employee or in the armed forces, or from Social Security disability payments.
Your income level is one factor in determining whether you can file Chapter 7 bankruptcy, which is the most sweeping debt relief you can obtain. Fortunately, in most situations, disability income is not counted for bankruptcy purposes and shouldn’t interfere with the Means Test.
#2 Medical Bills Can Be Completely Discharged
Medical bills are considered unsecured debt because there are no assets associated with the debt. A home secures a mortgage and the vehicle is collateral for an auto loan – that’s why these types of financing arrangements are called secured debt. Medical bills are different.
Often with an accident or illness that causes partial or total permanent disability, there’s a large expense when the incident first occurred. This can leave you with a pile of medical debt you can’t afford. Chapter 7 bankruptcy can discharge this completely for disabled Garner, NC, consumers.
#3 Credit Card Bills Can Be Completely Discharged
Credit card debt is also unsecured debt even though you purchased items with the credit cards. They fall under unsecured debt because the money owed isn’t associated with a lien on an asset like with a mortgage or auto loan. The items you bought can’t be repossessed.
With Chapter 7 bankruptcy, Garner, North Carolina, consumers can have total relief of all credit card debt within just a few months of filing their bankruptcy petition. If you ran up credit card debt for medical expenses or bills because of your change in employment, this can help.
#4 Student Loans May Be Eligible for Discharge
As a rule of thumb, student loans are not eligible for discharge in bankruptcy unless you meet a specific set of criteria so that you can show the court that paying your student loans would put you into “undue hardship.” This can be tough to prove.
However, a permanent disability that keeps you from working at your former capacity permanently might support an undue hardship claim. If you have student loans, find an attorney with expertise in Adversary Proceedings, an extra step necessary to request student loan relief in bankruptcy.
#5 Some Income Taxes May Be Discharged
In addition to credit cards, medical bills, and possibly student loans, income taxes may be eligible for discharge in some Garner, NC, bankruptcy cases. The caveats are that you must file your returns on time, even if you can’t pay the taxes.
Also, the tax debts must have been outstanding for more than two years prior to when you file for Chapter 7 bankruptcy. Both state and federal taxes might be eligible for discharge depending on your particular circumstances – this can help reduce your overall debt load.
Are you a Garner, North Carolina, consumer who is disabled? Are you neck-deep in debt you can’t afford because you can no longer work like you once did? Find out how North Carolina bankruptcy can help get you out of debt without impacting your disability payments.
Contact the Law Offices of John T. Orcutt today for a free Garner bankruptcy consultation at one of our convenient locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro, Garner or Wilmington. Call +1-919-646-2654 now to get help today.