What happens next? Bankruptcy questions answered
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The first thing to know about Greensboro, North Carolina bankruptcy is that with either a Chapter 7 or a Chapter 13 filing, you aren't likely to emerge entirely debt-free. But, you should be much better off than you were before. Here’s a look at what happens after you file bankruptcy, the lead up to your discharge, as well as post-discharge.
What happens immediately after you file bankruptcy?
Right after you file, whether it’s Chapter 7 or Chapter 13, there’s a second course of counseling called debtor education that needs to be completed. There is also a 341 Meeting of Creditors that must take place. In addition, with Chapter 13, the repayment plan must be approved by the Trustee.
Once you file, there’s an automatic stay on collections, and all creditors have to cease debt collections for a period of time. Your creditors will receive notice that you have filed bankruptcy, as well as information on the type of bankruptcy and their legal options when it comes to the debt.
What happens between bankruptcy filing and discharge?
With Chapter 7, the window between filing and discharge is relatively small—it’s just a few months. Aside from the debtor education course and 341 Meeting of Creditors, nothing else is required. This is a good time to get yourself ready to move on without debt by setting up a budget and making plans.
With Chapter 13, you should tighten your belt and prepare to live the next three to five years on a strict budget that will be required because of the structured repayment plan. This is the tougher of the two Greensboro, North Carolina bankruptcy options, but can be well worth it—particularly if it’s your only available option.
What happens after the bankruptcy discharge?
With Chapter 7, you should be free of credit cards, medical bills, old collections accounts and most other unsecured debt. With Chapter 13, at the end of your discharge, you should be completely current on past due balances on your secured debt (like your mortgage and car loan) and owe less in unsecured debt.
After the bankruptcy discharge, it’s time to make the most of the financial fresh start. With Chapter 7, it’s time to rebuild your credit score, keep control of your finances, pay your bills on time and enjoy the peace of mind that comes with no debt collectors hounding you.
For Chapter 13 bankruptcies, it’s time to relish not being stuck on the harsh repayment plan and enjoy some breathing room in the budget, ramp up saving for retirement and begin a rainy day fund. Both bankruptcy options allow a fresh start and a better financial future for Greensboro, North Carolina consumers.
How can you get the debt relief you need?
If you’re dealing with debt collectors calling all the time, you may need to try something new. Are you living paycheck to paycheck? Are you having to pick and choose between bills because you can’t afford to pay them all? Are finances the focus of your life, making you always stressed about money?
Money is important but it should not be all that you think about. With finances as your sole focus, you’ll have no quality of life. That’s no way to live—bankruptcy can change things for the better and give you a new lease on life.
To find out more about getting debt relief, contact the Law Offices of John T. Orcutt for a free Greensboro, North Carolina bankruptcy consultation. Call +1-919-646-2654 now for a free no-obligation appointment at one of our convenient locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro, Garner or Wilmington.