The North Carolina Bankruptcy Information Blog

Well, it’s a new year. 2011. Time to put behind the hassles and headaches of what was and time to think about what will be. Especially in terms of your personal financial situation.

Despite what so many had predicted, 2010 wasn’t much of a recovery year for America. The stock market saw some gains for the second year in a row. However, the unemployment conditions didn’t respond accordingly, perhaps making the connection between Wall Street and Main Street a bit more obscure. A rising tide, as it were, might not raise all ships.

That being said, what kind of decisions are you going to make about your future?…

In these tough financial times, finding people with a steady job, much less a job that provides a higher income, can be difficult. As a result, it may be surprising to find a lot of these high-income debtors are currently considering bankruptcy. But in this economic downturn, many of these men and women are suffering from unexpected challenges to their steady income and business, and, as a result, joining millions of other Americans by seeking the safe harbors of bankruptcy to protect what they’ve worked for.

If you happen to be one of these high-income debtors, you may be wondering what bankruptcy can offer and if you’re even eligible.…

It’s almost February and ‘tis the season for thinking about tax time—even more so if you find yourself considering the benefits of bankruptcy. So, if you believe bankruptcy is the right option to help you start fresh in 2010, in addition to trying to get your 2009 taxes filed in a timely manner, and wondering whether you can discharge any income tax debt in your bankruptcy filing, you may also be thinking about how you can protect your precious tax refund from creditor claims.

In Part I of the Preventing Foreclosure series, you received an introductory look at how to keep your home, with Part II of this six-part series emphasizing the power of being proactive, providing even more specifics on the best ways to prevent impending foreclosure proceedings by working directly with your mortgage lender before you find yourself falling behind.

If you are already behind on your mortgage payments, it’s hard to negotiate with your lender. With so many Americans behind on their mortgages, loan servicing companies simply don’t have the manpower to address every delinquent mortgage. But you have options- Chapter 13 or Chapter 7 bankruptcy proceedings can force creditors to end their collection activities and delay a foreclosure sale.…

If you have declared under Chapter 13, you may be eager to refinance your home. In doing so, you should pay close attention to what the mortgage companies are proposing and whether you will actually benefit from refinancing.  It is a good idea to research companies offering refinancing during Chapter 13 and analyzing their track records with consumers. You can do this through debt advocacy organizations and state agencies that act as business watchdogs.

If you are finished with repayment under your Chapter 13 and have received your discharge, the refinancing process will resemble the process following a Chapter 7. You should work patiently to rebuild your credit with tried and true strategies and patience so you can get the best possible rate.…

Buying a home after bankruptcy is a smart move. And yes, it is possible! If you don’t own a home already, buying a house is an excellent step toward rebuilding your financial life. A home can be a great investment because it is one of the few major assets you will own that will hopefully appreciate over time. Home ownership also demonstrates stability, which can reflect positively on your credit profile.

The good news is, as soon as a year after your debts are discharged in a Chapter 7 bankruptcy, you may be eligible for a good car loan, and just two years after completing a bankruptcy, you may become eligible for a home mortgage with a good interest rate.…

Chapter 7 bankruptcy, or a liquidation bankruptcy, involves the sale of any non-exempt assets, and is generally the fastest route to a discharge of debt.. Chapter 13 offers the option of a payment plan, or wage earner’s plan, that allows a person to create a structure to catch up on missed mortgage or auto payments. Another form of bankruptcy that is not as often filed but relevant to many, especially in states like North Carolina, is Chapter 12, or Family Farmer and Family Fisherman bankruptcy.

Chapter 12 bankruptcy was established in 1986 to support family farmers and fisherman who are struggling economically.…

In January 2005, a dream came true for the Harper family of Lake City, Georgia: they received a brand new home, courtesy of ABC’s “Extreme Make-Over – Home Edition” reality TV show. In a nationwide broadcast, a construction workforce 1,800 strong descended upon the family’s neighborhood and spent the next six days demolishing their ailing, humble abode and building a 5,500 square foot comparative palace – complete with four bedrooms, decorative rock walls, a three-car garage, four fireplaces, and a solarium. The home was valued at $450,000. It was, at the time, the largest and most ambitious home remodeling project the TV show producers and their builders had ever undertaken.…