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Bankruptcy doesn't wreck your credit for a decade

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You’ve probably heard the myth that filing bankruptcy ruins your credit for a decade. If you’re deep in debt and are considering Wilmington bankruptcy, you might be worried your credit will be permanently damaged. The great news is that bankruptcy will NOT tank your credit and, in fact, will help you get it back to good faster than most any other debt solution.

Yes, your bankruptcy petition can be rejected

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Filing bankruptcy is not something people look forward to, and most want to avoid if possible. However, drowning in debt is a much worse alternative. When you’re tired of living paycheck to paycheck and dodging debt collectors, bankruptcy can help. But what do you do if the court rejects your Wilmington bankruptcy petition?

Bankruptcy can stop foreclosure

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Are you in default on your Wilmington mortgage? If you’re delinquent and don’t catch up, you are at risk of having your property foreclosed. As soon as you miss your first payment, you’re in default of your loan agreement. If you miss a payment but make it up, it’s not so bad. The real problem comes when you miss payment after payment so that you can’t recover. That puts you on a path straight to foreclosure. But how long does it take to go from missed payments to losing your home?

Threatening debtors with jail is against the law!

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Unscrupulous debt collectors may threaten past-due Wilmington consumers with jail. If you’ve ever been terrorized in this way by a collection agent, you should know that they cannot send you to jail and they shouldn’t be making those threats. Being in debt, even if you’re very overdue, is not a crime. However, some debt issues are criminal.

What should you do after bankruptcy?

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When you begin the process of Wilmington bankruptcy, you’re likely focused on the moment – on what you’re dealing with now, whether it’s living paycheck to paycheck, debt collector harassment, or the threat of foreclosure or repossession. The next concern is what happens during the bankruptcy including court appearances. But what happens after bankruptcy and what should you do next?

Carefully consider your Wilmington bankruptcy options

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The decision to file Wilmington bankruptcy isn’t an easy one. You might lean towards Chapter 7 because it’s so fast and offers unprecedented relief of unsecured debt like credit cards and medical bills. This type of fresh start bankruptcy takes about four months from start to finish. However, despite the apparent benefits, not everyone is a fit for Chapter 7 and might do better with Chapter 13.

Facing student loan default in Wilmington, NC?

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More than 44 million Americans are battling student loan debt. Recent figures put total student loan debt at nearly $1.5 trillion. For those who can afford their student loans, it’s no big deal. But for many college grads, this debt is overwhelming and ruining their financial future. Are you behind on your student loans? If so, you should know that going into default brings severe consequences. Here’s a look at what to do if you’re facing student loan default in Wilmington.

Can you keep making 401(k) contributions during Wilmington bankruptcy?

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When you file Wilmington Chapter 13 bankruptcy, all your disposable income is expected to go towards paying back your creditors. This type of bankruptcy sets you up on a repayment plan that lasts from three to five years. Under the plan, you won’t pay back all of your debt. Some will be discharged at a lower percentage, but some debts must be paid back in full.

Struggling with student loans in Wilmington?

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Student loans are a fact of life for most who pursue a college degree. In Wilmington and greater North Carolina, the most recent data from The Institute for College Access and Success shows that 58% of graduates came out of college with debt and the average amount of student loans was nearly $26k. Grads from UNC Wilmington owe $25k on average, and 60% come out of that institution with loans. If you’re struggling with student loans, we’ve got some ideas including help from employers.