The North Carolina Bankruptcy Information Blog

A very troubling trend that potentially affects millions of Americas is going unnoticed. Don’t make the mistake too many people make when it comes to arbitration. There’s a good chance that you have conceded to arbitration already, probably unwittingly. That’s because more and more of the big companies that touch our lives on a daily basis, such as software developers, banks, web based services and of course, credit card companies, are writing arbitration clauses into their terms.

You know about those, right? The masses of tiny print below the box you check so you can get to the download screen, or the pages and pages of tiny print that accompany your shiny new credit card?…

Future home ownership is a major concern of so many people who have made the decision to file bankruptcy. A previous post on this blog discussed the ins and outs of your ability to buy a house after emerging from bankruptcy. The good news is that it is completely possible and that you can indeed be a very viable mortgage candidate.

However, there are some drawbacks to home ownership in general, many of which are related to costs. For starters, buying a home is not going to be the same rapid-return investment it was five years ago. As you know, the recent real estate boom sent home prices flying because financing was so readily available.…

Despite the defeat of the mortgage cramdown bill that would have allowed bankruptcy judges more power to renegotiate mortgages on behalf of those seeking relief, the Obama administration is realizing some slow success with its heavily touted foreclosure prevention program.

Mortgages eligible for the program started to be serviced last month and to date, 55,000 home loans have been subjected to modification as a way to alleviate the financial pain caused by sub-prime loan interest rate spikes. Based on the early success, the administration announced that the $75 billion dollar program is being expanded and will offer additional incentives for lenders who participate and to homeowners in need of relief.…

For some people who are ready to file for bankruptcy, the prospect of going through the “341 meeting” looms dauntingly. The meeting gets its name from the section of the bankruptcy code that outlines the requirement, 11. U.S.C. 341, but you may hear it also called the “first meeting of creditors.”  Within ten days of your filing, the court will send notice to your creditors, and one purpose of this notice is to set the date for the 341 meeting. The meeting itself will generally occur between 20 and 40 days of your bankruptcy filing.  The meeting is supposed to be attended by you, your attorney, the trustee, and creditors, if any decide to show.…

The Chrysler Corporation faces an unlikely challenger in its attempt to move quickly through U.S. bankruptcy court… its own dealer network. In a Sunday article posted at the Financial Times website, Chrysler’s dealers are planning a challenge to try to stop the North American automaker from slashing nearly 800 underperforming dealers from carrying its products nationwide.

Chrysler filed for bankruptcy earlier this month in an effort to re-emerge in a partnership with the Italian-based automaker, Fiat. Chrysler announced the dealership cuts shortly after the filing. As part of its bankruptcy, Chrysler proposed the elimination of 789 dealership contracts. Dealerships are insisting that applicable non-bankruptcy law, specifically state franchise laws, would prevent Chrysler from eliminating the contracts.…

One of the big myths in the minds of people who are in debt and happen to be married is that bankruptcy leads to divorce. Yes, along with medical bills and job loss, divorce can be considered a leading contributor to bankruptcy, since it can put one or both ex-partners in a significantly more fragile economic position, and ultimately lead to a perilous situation that can be remedied no other way. That situation can happen after a divorce, but the idea that an otherwise happily married couple that files bankruptcy will inevitably land in divorce court is just false.

There is absolutely no doubt that financial problems put stress on a marriage.…

Just about everyone carries some debt whether it’s a mortgage, car loan, student loan, or just an outstanding balance on a credit card here and there. Debt, by itself, is not necessarily bad. In fact, borrowing money to buy things is not only necessary in many cases; it’s smart. Not many people can plunk down $350,000 for a house, $75,000 for a four-year degree, or $25,000 for a car. And when it comes to mortgages and student loans at least, the long-term benefits often outweigh the cost of carrying the debt.

But there comes a point at which the benefits of credit evaporate, leaving nothing but burdensome debt.…