The North Carolina Bankruptcy Information Blog

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.…

In the annals of bankruptcy law, special rules have come to dictate how certain property—from homes to cars to household items—is categorized and dispensed post-filing. Specifically, most states have some sort of homestead exemption that protects some or all of the equity in the debtor’s home from the clutches of creditor claims.  The Bankruptcy Code provides debtors with a homestead exemption—an exemption that is doubled for joint owners.

But issues can arise in a bankruptcy’s homestead protections when a non-resident co-owns the home, such as when a parent co-signs with an adult child to help subsidize the child’s first home.

In this situation, where parents purchase a house for a child (not uncommon in these tough financial times) and are also on the deed as co-owners of their child’s home, and the child or even the child and parents then later face credit problems and are considering bankruptcy, questions can arise as to whether a Chapter 7 filing by one party would affect the other’s interest in the home.…

Many see bankruptcy as a lonely journey into a new financial frontier; but in reality there are many people available to walk you down your new path to fiscal freedom, including family, friends, your trusted bankruptcy attorney, and, finally, the bankruptcy trustee.

Your bankruptcy trustee not only administrates your bankruptcy case, she is also the means to your bankruptcy end—the lynchpin to a fresh new start that only bankruptcy can provide. As such, if you want to feel the full benefits of your bankruptcy filing, it’s all too important to be conscientious about keeping your bankruptcy trustee content and cooperative.

So, you might be asking: how do I stay on my bankruptcy trustee’s good side?…

For many people, divorce can cause a huge financial strain in already tough economic times. In others cases, it’s the crushing weight of debt that leads to the dissolution of a marriage.  Whatever the ultimate cause, and effects, when considering bankruptcy amid a divorce it’s important to know a few basics.

Divorce Decrees and Bankruptcies
Because your bankruptcy only includes debts in existence at the time of your bankruptcy filing, a subsequent divorce decree (i.e., a divorce decree following the date of your bankruptcy petition) remains intact and won’t be included in the debt dispensed by your bankruptcy. While few attorneys would urge you to continue in a bad relationship for money, some good advice might be to time your bankruptcy filing so that it follows (and includes) the divorce decree or separation agreement.  Keep in mind that only Chapter 13 bankruptcy discharges debts and equitable distribution obligations, as long as they are not considered alimony or child support or in lieu of either kind of domestic support.  Sometimes, obligations to pay the other spouse’s attorney fees related to the separation or divorce might sometimes be considered domestic support obligations and therefore non-dischargeable. 

All obligations under a separation agreement remain intact and enforceable after a Chapter 7 bankruptcy, as Chapter 7 does not afford the debtor a discharge of any separation or divorce-related obligations.…

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.…

In an era of extreme economic downturns and job insecurity, having a car at your disposal has never been more necessary for work, job interviews and providing other basic fiscal needs…even as you consider a personal bankruptcy.   Fortunately, in most places a regular car, as in one single car, is usually exempt from bankruptcy to allow average Americans just like you to get to work, school and make runs for basic needs and necessary family errands.

However, if you do find yourself seeking the financial benefits of bankruptcy, it’s important to avoid putting the brakes on regular car maintenance, including basic car insurance and automobile upkeep.…

Bernie Madoff, probably the most infamous Wall Street scam artist next to the man who invented the scheme strategy that bears his name, is complaining from his North Carolina prison cell that it’s just too hot down here. I wonder why the heat never bothered him in Hawaii? Or the Bahamas? Or any other warm-weather tropical locale he frequented on the greenbacks of so many investors who trusted him with billions.

In a great example of the power of Karma, Ms. Madoff’s wife is now being sued by the trustee who was appointed to handle the liquidation of assets from his recent bankruptcy filing.…

It shouldn’t take more than a few visits to our blog for you to find a slew of posts about how to prepare for your bankruptcy and manage all the relationships along the way, like those with your attorney and bankruptcy trustee.

Like any relationship, the ones that are forged during a bankruptcy should be built on trust. That is, you need to be upfront with everyone and every entity involved, even your creditors, to ensure that in the end you wind up where you need to be. A large part of building that trust has to do with how you handle the disclosure of your assets.…

In this age of near double digit job loss, devious credit card practices, multiple industry collapses, and out of control government spending that promises a future of oppressive taxation, it’s a wonder anyone is still able to keep his head above water. More and more people are now realizing that they are at the helms of rapidly sinking ships. What’s astonishing is that amidst all the dour economic predictions, people are still finding the will and strength to try to rise above the bad luck, poor decisions, or whatever put them in dire financial straits and get back on solid footing again.…