The North Carolina Bankruptcy Information Blog

It’s tax season. Which means that for most people, it’s time to realize just how much we give to Uncle Sam every year. For some, the prospect of a refund provides a glimmer of hope that some new money is coming in soon to pay off debts.

Just a quick little note on your tax dollars before we get into the meat of this post: it is actually better to owe just a little bit of money after filing because that means that you have used more of our your own money throughout the year instead of giving it all to the government.…

Believe it or not, there are some situations when credit cards can be a benefit. They are often the only option when making travel reservations, and can come in handy in the event of genuine emergencies. A credit card can also help you build good credit, or rebuild credit after bankruptcy.

Yep, so that’s about four reasons. The reasons NOT to use credit can fill a book, but here are just a few situations in which using plastic seems like a good idea, but you’re much better off just saying no!

Department store credit accounts: notoriously high interest rates are just one great reason to avoid department store credit accounts.…

But you must resist!

You’ve caught on to the fact that certain kinds of debts are “better than others.” Knowledge is a good thing, but don’t get confident that you’ll be able to pull a fast one by trading off a non-dischargeable debt for a dischargeable one. The consequences simply aren’t worth it. Here again is another great reason to count on an experienced bankruptcy attorney when filing your case; he will help you act strategically to maximize the benefits of bankruptcy while helping you avoid the pitfalls and mistakes.

Most loans are unsecured and will thus be discharged altogether in most Chapter 7 cases, and discharged after successful completion of the payment plan in a Chapter 13 bankruptcy.…

Try saying that title three times fast!

The right to an unconditional discharge of your debts is a cornerstone benefit of filing for bankruptcy protection. It would be nice if this right was limitless, but like all good things, the ability to discharge debt has some boundaries. Recent taxes, student loans, and alimony are just a few examples of debts which will not be discharged by bankruptcy. However, even within the broad class of non-dischargeable debts, there are two important categories: Priority and non-priority. The priority classification of the non-dischargeable debt will determine how the debt is treated in your Chapter 13 plan, and can make a huge difference in the ultimate success of your bankruptcy.…