Many people thinking about filing bankruptcy for any number of reasons. For example, if you are experiencing major financial setbacks due to divorce, illness, or the loss of a primary source of income, you might be considering bankruptcy. You might also be considering bankruptcy if you find that you are unable to get yourself out of debt after five years of trying. Many people file bankruptcy when they receive notices that their mortgage and loans are facing foreclosure. No matter the reason of filing for bankruptcy, there is no doubt that it can be of help. However, filing for bankruptcy does not get rid of all of your debts. You will not get rid of child support debt, student loans, government fines, and government penalties. In the state of North Carolina, you can file for a Chapter 7 bankruptcy or a Chapter Thirteen Bankruptcy.
Chapter 7 bankruptcy is one of the quickest forms of bankruptcy. This type of bankruptcy is available to individual people, married couples, corporations, and partnerships. In this type of bankruptcy, a trustee will be paid to take and sell any of the items that you own that are not exempt. The money that is obtained from the sold items will be used to pay off all of your creditors. A person will normally file for a Chapter 7 bankruptcy when they do not have any non-exempt items to sell.
Exempt items include household furnishings, pets, clothes, and appliances. You also get to keep life insurance proceeds and any personal injury or death proceeds. Before you are able to file for a Chapter 7 bankruptcy, the court will need to find out if you are able to file for bankruptcy. This process is used in order to make sure that no one will abuse bankruptcy. This is only available for people who really cannot pay off all of their debts. Anyone who makes less than the average income for North Carolina is eligible for a Chapter 7 bankruptcy filing. The median income of one person for North Carolina is $38,794. The median income of two people for North Carolina is $52,194.
A Chapter 13 bankruptcy is designed to help you pay off all of your debts over a three to five year time period. Many people choose this option so that they can organize their financial situation in order to make time to pay for everything. You may also choose this option if you have mortgages or other loans that need to be updated. This option is also available for people who have loans that cannot be covered by a Chapter 7 Bankruptcy. In addition, filing for Chapter 13 bankruptcy is perfect for people who are determined to pay back the money that they owe. In the state of North Carolina, you need to have a stable source of income with enough disposable income to pay for your debts. In addition, you need to have a proposed payment plan that will be reviewed by the courts. The courts will check your proposition for flexibility and accuracy.
