The North Carolina Bankruptcy Information Blog

Need to file bankruptcy or think you might? Then, you will be interested in this.

The Law Offices of John T. Orcutt is offering to get people filed for “$0 Money Down”. That’s right, “$0 Money-Down”. No upfront fees. No upfront costs.

Just for the record, this is not a loan and “no credit is needed” because this plan pulls on the power of Chapter 13 of the U.S. Federal Bankruptcy Code. Chapter 13 is one of the 2 major chapters of the Bankruptcy Code under which most consumers generally file.

If filing bankruptcy is right for you and if you qualify for “$0 Money-Down” (and lots of people can), you can get your bankruptcy case filed for “$0 Money-Down”.…

Hiring a bankruptcy attorney is your best first step toward a refreshed, healthy financial future. The decision can be a tough one, we know.
Once on track to file though, we’ll clear the path for you, assisting at every step and consistently communicating. There are a number of things you can do along the way, too. Many of which are quite simple but go a long way toward ensuring your next “economic life,” as it were, is as productive as possible.

You’ll also want to keep a keen eye on your credit reports after you file. Make sure the accounts that were discharged are recorded that way.…

The holidays. A time for figgy pudding, partridges zipping around pear trees and maids milking barn animals. Those are well and good signs of happiness and all, but we’re here to dole out gifts that really sparkle under the tree, the kind that keep on giving and never need be returned. We give you, joyous reader, the 12 Days of Bankruptcy.

On the first day of bankruptcy, the bankruptcy code gives to you: an automatic stay. This gem of a benefit to bankruptcy ceases all pending lawsuits filed against you by creditors upon the approval of your petition. You will probably still have to pay any tax lawsuits or student loans that you have out there, but hey, this is only the first day!…

In every great relationship, transparency is essential. And a perfect match is often a partner willing to share their past relationships, their financial status as well as what they’re thinking. Similarly, in every fruitful bankruptcy, honesty is key. In fact, it is mandatory. So, if you’re bankruptcy bound, it’s always best to understand early on that, at the outset of your filing, you must act in good faith, revealing all salient points with both your bankruptcy attorney—the person or persons who represent you in your case—as well as your bankruptcy trustee—the person who administrates your case.

This “duty to disclose” can come in several forms and cover some of the most important parts of your bankruptcy process.…

Are you feeling too broke to break out of debt? Too often, Americans just like you, already suffering under the intense strain of rising mortgage costs, consistent credit card debt, mounting medical bills, employment woes, and other blights on their bank accounts, are also suffering under the misconception that an experienced bankruptcy attorney is, for them, financially out of reach.

Well, it’s finally time to halt the hesitation, dismiss the deterrents, and suffer no more; because, in fact, the opposite can be true in the world of bankruptcy law. Days, weeks, and months wasted without speaking to a qualified bankruptcy expert like those at The Law Offices of John T.…

While some experts are calling the latter portions of 2010 a new era of economic recovery, bankruptcy filings remain in true recession-era form.  In fact, according to the 2010 Fiscal Year statistics from the Administrative Office of the U.S. Courts, the number of bankruptcies filed between October 1, 2009 and September 30, 2010 increased from 1,402,816 to 1,596,355, marking an increase of 13.8%. And even though Chapter 11 (business and large individual) filings decreased, from 14,745 to 14,191, a 3.8% drop, and business filings overall also went down, from 58,721 last year to 58,322 this year, a 0.7% decrease, non-business or personal filings went up under all other chapters of the Bankruptcy Code, rising from 1,344,095 to 1,538,033, or 14.4%.…

In these tough financial times, many people are looking for ways to save a buck. And you’ll often hear us singing the praises of average Americans taking their financial futures into their own hands, whether it be by avoiding the perils of wasted money to taking advantage of bankruptcy benefits. But in addition to buttressing your budget, this time around we’re also trying to save you more of something else: trouble.

So let’s get to it. Here are seven tasks you shouldn’t try doing yourself (even in a bad economy):

(1) Automotive Oil Changes
First on our don’t-do-it-yourself list is something most will traditionally tell you is an easy way to save money: changing your own oil.…

Our recent, and lingering, economic recession has left many average Americans wondering how to keep their heads above the proverbial financial water. In a recent (and timely) article from AOL’s DailyFinance entitled, “Mired in Debt? Here’s How to Dig Out Safely,” the financial resources site discusses just that: strategies for success when trying to dig yourself out of mountains of debt.

In it, we’re able to take a closer look at debt settlement firms, one option many average Americans are turning to in these tough economic times—and an option that is leaving many with second thoughts about using this service ever again.…

In an era of meteoric unemployment rates, looming layoffs and job uncertainty, income can be a tough thing to talk about these days.

But for those men and women seeking the priceless protections of a bankruptcy—many for the same unfortunate economic reasons listed above—talking about income is at the very core of a successful bankruptcy filing.

Under current bankruptcy law, debtors just like you who are seeking bankruptcy must complete what is known as a Statement of Financial Affairs. On it, you are asked to disclose all earned income: from average employment pay to profits from the operation of a business.…

So, like a very large number of Americans today, you think bankruptcy is your best route out of the financial doldrums.  After all the credit counselors, self-help books and Craigslist charlatans, it’s likely that you’ve grown tired of the debt cycle. We understand. That is what brings a lot of clients to our offices.

However, how do you go about filing bankruptcy? And furthermore, is an attorney really necessary? Well clearly, we believe our role in the process is essential to people getting the most benefit possible out of filing. But sure, that’s our job, and we do get paid for it.…

This unrelenting economic downturn has been tough on all Americans—whether they be single, dating, engaged, married or widowed. But, as anyone who has ever been married already knows: money (or lack thereof) can be the main cause of many couple’s marital strife. As a result, in this especially difficult economic climate—full of job insecurity, foreclosures, and slow economic gains—many have been pushed to the brink of bankruptcy, and, along with them, the people who love and wanted to marry them.

So what should you do if you are preparing to marry someone drowning in debt?

While as a general rule, you are not liable for your spouse’s debt, in some cases the debt follows the “I Do’s” and you may end up paying that debt anyway.…

One thing you may already know about most court proceedings, is that parties usually have the option to represent themselves without the aid of an attorney. This is called appearing ‘Pro Se’, which, in Latin means “for oneself”. In a bankruptcy proceeding, when money is tight, the thought of saving money by cutting out attorneys and their fees can be pretty tempting. But there are many reasons this is a bad idea.

Bankruptcy can be complicated and bankruptcy judges are a picky bunch. They expect that the preparation of the voluntary petition, schedules, or other documents will be done accurately and on time.…

If you’re considering bankruptcy, you may be wondering about the nuts and bolts of the bankruptcy process. One part of this process is the 341 meeting.  After filing your Chapter 13 or Chapter 7 bankruptcy, you are REQUIRED to attend a meeting of your creditors, otherwise known as a “341 meeting.” Named for section 341 of the bankruptcy code that mandates a meeting between a bankruptcy bound debtor and creditors, it normally occurs three to six weeks after your bankruptcy filing. If you fail to attend the 341, it may result in the dismissal of your case.

Purpose of the 341

Despite the fact that the 341 meeting is not attended by a judge, nor conducted in a courtroom, it is part of the bankruptcy legal process, meant to ensure that you openly and honestly represented your assets, debts, and disposable income in your bankruptcy petition.…

As we’re all aware, this decade’s Great Recession has dealt, and continues to deal, a significant blow to the budgets of many American families, leaving millions in debt, underwater in their mortgages, and looking for any means necessary to get back on a financially-healthy course.  Now, tax time can  yield a long-term solution for some cash-strapped citizens.

With tax deadlines just a few weeks away, many people just like you are expecting significant refunds, with the average being several thousand dollars. Some of you may consider using this money for major purchases or down payments on a new car. Many more may even want to pay off credit cards and other debts.…

Bankruptcy is one of the most important decisions you may ever have to make. It’s not a decision to take lightly, and our office understands that you and your family have a lot of questions. While many of the same laws apply to many cases, rarely is your financial situation the same as another person’s. We all have different reasons for needing to rely on the bankruptcy code and just about every reason is as justifiable as the next.

To assist you in the most direct and non-invasive method possible, we have created three communication vehicles by which you can begin to explore why bankruptcy may be your best way out from under an impending financial crisis.…

Many of our clients automatically assume they will lose their rental property if they file for bankruptcy. Isn’t that the whole idea of bankruptcy? That you give up everything you have, with a few exceptions, in exchange for getting the debt collectors off your back?

Well, no. Many factors come in to play in determining whether or not you will be forced to sell your rental property, including whether you file chapter 7 or chapter 13, how much money you owe on the property and how much income you receive from it.

Let’s start with chapter 7. If you file chapter 7, you get an exemption for the equity in your primary residence – how much depends on the state you live in – but rental property doesn’t qualify for the standard residence exemption.…

You may have read on the blog, or elsewhere, that many are calling our current economy a “middle class recession.” This is because the numbers are way up on bankruptcies filed by those who make more than $60,000 per year, up 6.9 percent from 2008. Bankruptcies on the whole are up 36.5 percent from this time last year.

So why does it matter how much money a person makes when filing bankruptcy? Well, because bankruptcy is often considered an escape route for the financially unreliable or worse yet, “something poor people do.” It’s just not true.

Today, bankruptcies are increasing among people in the real estate profession, namely developers and agents.…

Is there any way to lower your car payments in bankruptcy? The answer, which may surprise you, is maybe. While Congress recently rejected attempts to pass a law that would allow bankruptcy judges to ‘cramdown’ mortgages, there do exist some limited possibilities for revising auto loans.

Basically, debtors who owe more than their car is worth – and who doesn’t, especially if you bought it new? – may be eligible to eliminate the portion of the debt that exceeds the value. In a Chapter 13 bankruptcy, the debt would be divided into ‘secured’ debt (the value of the car) and ‘unsecured’ debt (the excess money on the loan), and the car loan would be revised to repay only the secured portion.…

Have the credit card companies ‘jacked-up’ your rates, doubling your payments?

And really stuck it to you and your family?

Now, you’re screwed for sure…right?

Where is the money gonna come from to make double payments?

You can’t just ask your boss for a raise because you need more money…can you?. So, you have to try to pay with what you have.

The problem is that every dollar you pay is a dollar you steal from your family.

And…to make things worse…

Have they lowered your credit limits, putting you “over limit” for no fault of your own, so now they can soak you for outrageous “over the limit” fees?…

Exacerbated by the recent recession, self-employed or small business owners everywhere are facing fewer credit options, high health care costs, and lagging consumer spending. Those struggling to stay afloat in these tough financial times must ask themselves even tougher questions. Do I have the motivation to continue my business? Could the business prosper if it wasn’t keeping up with old debts? Could my business persevere if it shed equipment, employees or space? Could I sell my business? Could I start another business if I did sell?

If after answering these questions you find you are no longer able to sustain or expand your business in your current financial situation, filing for bankruptcy may be your best bet.…