The North Carolina Bankruptcy Information Blog

Serious debt happens to most people before they realize it. Even though it’s always there, only when the income stops do the debt obligations get really noticed. And in a recession like the one that has plagued our country for the last three years, loss of income is a common thing.

Bankruptcy can serve as a lifeline for those who finally reach the point where decisions have to be made about which bills get paid. Lately, it seems as if a lot of people are choosing their credit cards and utilities over their mortgages, as “strategic defaults”—people purposely not paying their mortgage—are on the rise.…

While many people consider it common knowledge, the last-minute fear before deciding to file bankruptcy could end up costing you even more come retirement. Turns out, that as the recession deepens, more people are looking toward their long-term savings for an influx of cash to help stay afloat.

Well, don’t ever be one of those people. Typically, what ends up happening is that you wind up without retirement money and still filing bankruptcy. We’ve seen it happen. And it’s hard to watch.

An article on USAToday.com pointed to figures that show a record number of people in the second quarter of this year used their retirement accounts to help stave off a financial problem.…

Deciding to file bankruptcy requires that you take an honest assessment of your financial situation.

Now if our government would just approach our economy the same way.

News this week about an economic recovery that probably never was and a perpetuating recession are putting into a harsh perspective just how much time, energy and tax-payer money has been dumped into a financial revitalization effort that looks to have not just stalled, but pulled us backward.

What this shows is that perhaps Washington was simply too quick to react, moving forward with grandiose visions of another New Deal before they really knew what the deal was.…

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.…

Realizing we are in debt is a lot easier than figuring how it happened. Unless you can pinpoint one central reason, like the loss of a job or long-term medical issue, it can be hard to retrace your steps to financial crisis. Plus, who even wants to? The more important exercise is to figure out how to not let it happen again. And that means determining why you overspend so you can change your habits in your life after bankruptcy.

Countless consumer studies have been done about why we spend. From psychological influences to marketing, music and social pressure, there are far too many things impacting our spending decisions.…

Despite the rumors, stigmas and innuendo, there are a number of things you can keep after filing bankruptcy. Your car, for example, is something that you may be able to keep, provided your debt issues running up to your bankruptcy did not result in a repossession and the equity in your car can be protected with available exemptions.

If you were financing (purchasing) a car when you filed Chapter 7 but did not plan to surrender the vehicle in your bankruptcy, and you continued to keep current on the debt through filing your case and afterwards, you will need to fill out and sign something called a “reaffirmation agreement.” This legal document certifies that you will agree to repay all or a portion of that particular auto loan debt since it would otherwise be discharged along with your other debt.…

While the current economic forecast is considered less dismal than in past months, the Federal Reserve released a forecast this week predicting unemployment will stay high over the next two years—noting that recession-scarred employers are likely to stay conservative in their hiring practices even as recession-scarred citizens continue their search for a dwindling number of jobs.

According to The Huffington Post, in the Fed’s late January meeting, the central banking system left rates at a record low—near zero—“to help nurture the recovery and drive down unemployment. And it pledged to hold rates at ‘exceptionally low’ levels for an ‘extended period.’ Fed Chairman Ben Bernanke, in remarks last week, suggested the Fed is still months away from raising rates and draining money out of the financial system.…

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 are facing some serious financial problems, a guess that you are short on cash is not much of a stretch. Some people hesitate to file for bankruptcy protection because they believe they need to hire a bankruptcy attorney, but think they won’t be able to afford one. While they are absolutely right about the first part–an experienced bankruptcy attorney is essential to a successful bankruptcy–they may be surprised to learn how affordable legal services can be. Still, like most good things in life, the assistance of a qualified bankruptcy attorney won’t come for free; so how can you pay for it?…

Does anyone else find it just a little ironic that the two most commonly used bankruptcy options are lucky number 7 and the unlucky number 13? You have to wonder just a little bit if that is fates way of trying to send you a little message…

There are actually six different types of bankruptcy which a person or corporation can file: 7, 9, 11, 12, 13, and 15. More often than not most people will just be looking at filing for either 7 or 13. The tricky part can be in figuring out which one is right for you.

The figuring out part is what you pay your lawyer for, but for something like this you are better off having enough knowledge to be considered dangerous- meaning you know enough to pose the right questions to your lawyer and understand what he or she is saying.…

Everything is so political today. From health care reform and recession bailouts to the multitude of Web sites, cable news stations and talking heads that cover the debates, there seems to be no escape from the issues that are shaping our country. However, in the thick morass of over-done analysis and futile attempts to put every issue, no matter how minute, into historical context, we have like no other time in history, lost sight of how we ended up where we are today. Not just financially, but socially, mentally and as a country.

Those thoughts made us realize that maybe it’s healthy for us to look back on things from time to time to get a better understanding of why someone may think the way they do or why an organization reacted the way it did to an important social issue.…

You know it and we know it: There’s a lot of stigma behind the word bankruptcy. We’re here to tell you: If you’re considering bankruptcy, there is nothing to be ashamed of and don’t let anyone tell you differently. Bankruptcy has helped millions of families and businesses emerge stronger, especially in tough economic times.

The federal bankruptcy code has long been a carefully negotiated, well-thought out safety net to catch the financial pratfalls so many Americans take on occasion. It’s an outstanding testament to the state of cooperation, foresight and spirit of assistance that characterizes our country. Despite the pervasive stigmas, there is very little collective impact to the nation’s economic well-being as a result of individual bankruptcy filings outside of a number of Americans becoming once again financially stable and viable contributors to society.…

Few of us learned much about balancing a checkbook, let alone managing our finances during high school. And for many years credit card companies have been trolling college campuses for fresh bodies to press into servitude. So it comes as no surprise that so many young adults are overloaded with debt. Young people, in their early to mid 20’s, are finding out how easy it is to get into debt, and how backbreakingly hard it is to get out of it. Add the present economy and virtual impossibility of securing a decent paying job, and you’ve got the recipe for a disillusioned, frustrated, and eventually hopeless generation.…

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.…

If you have spent some time on this blog, then you should understand the value of working with a bankruptcy attorney. Not only can a dedicated legal representative be your best asset in a courtroom, they offer the emotional confidence that everything will be all right in the end. It can be trying and frustrating at times, and that is exactly why you should hire an attorney.

That being said, there are some things you can do on your own to prepare for meeting with a bankruptcy lawyer that will not only help you get a better idea of where you stand but it will help your attorney do an even better job for you.…

There is no questioning how critical a role the state of our economy has played in the debt problems Americans are experiencing today. From lost jobs to increased consumer costs, the economy has caused a lot of pain for all Americans.

It’s clear that our economy will continue to be a source of worry for much of America. If you’re thinking about filing for bankruptcy, you may be worried that the economy has gotten so bad, bankruptcy relief may not be enough to help. In these troubled times, it’s best to reflect on your individual financial situation and to look a little into the future, as clearly as possible, to hopefully get some insight into where we’re all headed.…

The bankruptcy process can be confusing, stressful and even a little scary sometimes. Thankfully, there are an array of exceptional financial professionals out there, the most helpful being your reputable bankruptcy attorney, all of whom can help you navigate the choppy waters and put your life back on track.

It pays to understand for yourself as much about the bankruptcy process as possible. The more knowledge you gain, the easier it will be for you to comprehend how to help those you are helping you. Since bankruptcy is a legal process, it will involve the courts. And courts mean judges.

So, exactly what role does a bankruptcy judge play in your case?…

After living with the stress of debt for a while, it’s very possible to become accustomed to it. Maybe you think that financially, things are just always going to be that way. “I’ll owe more than I make and somehow, I’ll just manage to get by every month.” Serious debt is an emotionally trying and socially problematic complication of life and unfortunately, almost like an illness, many of us learn to accept the pain and find a way to live.

But it simply doesn’t have to be that way.

Living with the sleepless nights and monthly frustrations of just scraping by is not your lot in life.…

We have all seen the loan offers in the mail, the banner ads online and even the commercials that air on late-night television. Even though we all scoff initially, knowing what’s in store if we call, your outlook changes quickly when the realization hits that you too are saddled with mounting debt.

But easy-to-get loans with high interest rates and hidden fees are not the solution to your debt problems. All too often, the opportunity to get that money so quickly, certain you will not be the one who gets snagged by the fine print, is sometimes too appealing an opportunity to pass up.…