Consumer Bankruptcy FAQ
Financial distress does not have to ruin your life. If you are contemplating bankruptcy, know that it is a reasonable option that many people choose. At Butler & Butler, LLP, we have served clients in eastern North Carolina since 1928. Our consumer bankruptcy lawyers know the ins and outs of the process and will help ease the legal stresses of your financial situation.
Have questions? We often hear these from clients.
What’s the difference between Chapter 7 and Chapter 13 bankruptcy?
Chapter 7 bankruptcy, also known as “liquidation” bankruptcy, is for individuals or businesses with little-to-no means of repaying their debts. Those who file for Chapter 7 may lose some of their property, specifically nonexempt assets. Nonexempt assets include stocks, bonds, vacation homes, a second vehicle, musical instruments and others.
Chapter 13 bankruptcy, also known as “reorganization” bankruptcy, is for individuals who qualify to set up a repayment plan that demonstrates your ability to pay your debts.
Can I keep my house?
Whether you keep your home depends on your amount of equity and whether you can maintain your mortgage payments. To some extent, you may even retain reasonably necessary items such as furnishings and appliances.
Can I keep my car?
When it comes to giving up property, vehicles tend to be exempt. If you own multiple vehicles, however, it is possible you could lose one or more of them.
What will bankruptcy do to my credit rating?
Filing for bankruptcy will hurt your credit score, and it will be on your record for up to 10 years. However, if you are not able to pay your debts, it’s likely your credit rating already is poor. Bankruptcy gives you a legitimate means of starting anew. In the long run, it likely will help you.
Can I get rid of my student loans through bankruptcy?
Generally, bankruptcy does not wipe your student loan debt. However, you may be able to eliminate your student debt via bankruptcy if you can prove it would be an undue hardship to make your student loan payments.
Connect With Our Experienced Attorneys Today
From low-income families to big businesses, our attorneys see bankruptcy in all its forms. We can help you get a clean slate and start fresh. For a consultation, call our office in Wilmington at 910-726-3155 or send an email for scheduling.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.