The North Carolina Bankruptcy Information Blog

Bankruptcy is a terrific way to take care of many kinds of debts. But you may have heard that not all debts will be discharged in a bankruptcy. As a result, and depending on the kind of debt you have, you may be worried that declaring bankruptcy would not really help you. What you may not know is how bankruptcy can help you with your debts, even the ones you can’t discharge outright.

Support obligations fall in this category of debt.  They include things like alimony and child support payments. Because these are priority debts, you will not be able to discharge them outright with a Chapter 7 bankruptcy, and, in addition, the automatic stay will not prevent collection efforts on past due support obligation payments.…

As you are probably well aware, bankruptcy is an important decision that should not be taken lightly. If you are eligible to file but hesitate to do so, you stand to lose more than you may guess. Dithering too long can ruin the strategic advantage of timing; deciding not to file at all could cause you to lose everything.

Take for example your car: if your car is securing a debt and you decide not to file for bankruptcy, a creditor may proceed with repossessing your vehicle. You may think you’re ready to lose your car should it come down to repossession, but consider this: the proceeds from the sale of the car undoubtedly will not cover the entire secured debt.…