BANKRUPTCY – CHAPTER 7

-  Bankruptcy – Chapter 7  - 

BANKRUPTCY Lawyer For Winston-Salem, NC

Are you struggling with your bills?
Behind on your mortgage and facing foreclosure?
Would a fresh start for your family make all of the difference?

It will cost you nothing to know your rights when you take advantage of our free consultation. Our bankruptcy lawyers have helped many and we can help you.
If you are drowning in debt, the bankruptcy lawyers at Vrsecky Law Firm of Winston-Salem, NC can help you. We provide Chapter 7 bankruptcy services. Bankruptcy laws were created to help honest, hardworking people start over when things happen in life that make repaying their debts impossible. When our bankruptcy lawyers meet with you to discuss your bankruptcy needs, we'll show you how we can help you get back on your feet. Bankruptcy is a legitimate, legal way to help your family get a fresh start. Contact our office in Winston-Salem, NC to schedule a free consultation with an experienced bankruptcy lawyer. You will find us very accessible and easy to work with. We're here to help you get the new start you need.
WHAT IS BANKRUPTCY?
When individuals and business can't pay their bills, it is possible to have those debts discharged through a court proceeding. A judge will review your assets and liabilities and, if debts are greater than money available to cover them within a reasonable amount of time, may rule to remove your legal requirement to repay them. If you think paying off your debts would take more than 5 years at the rate you're going, and you don't see that changing anytime soon, it might be time to declare bankruptcy. But first, make sure you understand that doing so will negatively penalize your credit report and future finances for 7-10 years. Other options, such as a debt management program, might work better for you. Though, keep in mind, such courses of action often take 3-5 years to resolve and, even then, may not guarantee your debts will be completely settled.
MYTHS ABOUT FILING BANKRUPTCY
Myth #1
You must be dead broke before you can file for bankruptcy protection. REALITY: This is completely false! In fact, it is important to consult with an experienced bankruptcy lawyer to learn how you can protect your income and assets before you are completely penniless.
 
Myth #2
Bankruptcy ruins your credit. REALITY: If you are looking at bankruptcy, chances are that your credit has already taken a beating. While a bankruptcy stays on your credit record for 7 to 10 years, so do all of the delinquent and defaulted debts you may carry now. The good news is that a bankruptcy will eliminate your debt and, upon receiving your discharge, your credit score should increase significantly because your debt-to-income ratio will be substantially lower.
Myth #3
If you file bankruptcy, you will lose your home. REALITY: In most cases, you are able to keep your home. The goal of bankruptcy is to protect you and your assets and not to punish you by tossing you into the street. If you are behind on your mortgage payments and need time to catch up, bankruptcy offers you the chance to reorganize your debts and catch up on your back payments over a period of 3 to 5 years. The lenders have no choice but to cooperate so long as you maintain your plan payments.

Myth #4
You should drain your IRA, 401K or retirement accounts before you file bankruptcy. REALITY: Absolutely not! Those ERISA-qualified retirement accounts can't be touched by your creditors and are completely protected by the bankruptcy. DO NOT take any of those funds to pay your creditors, particularly unsecured creditors. Keep them where they are to be used for their intended purpose.........your retirement.
WHAT TO DO AFTER FILING BANKRUPTCY
You may need to go to court to attend a 341 meeting. A formal bankruptcy discharge order will prevent any creditors from being able to contact you, unless you were left with some non-dischargable debts. In the event that a creditor continues to report an account balance that should be zero, you should mail a written dispute to the relevant credit bureaus. If the false negative reporting does not cease or the issue is not otherwise addressed, you may be able to file a claim and seek damages. While your credit report may show a bankruptcy for up to ten years, your credit score should start to slowly improve, especially if you sign up for a new secured line of credit. You should be able to obtain loans for homes and vehicles after 2 years. In fact, you may receive an increased amount of advertising offers to buy a car.

Our Bankruptcy Lawyers Offer the Following Consumer Bankruptcy and Debt Relief Legal Services

Schedule a consultation with an experienced bankruptcy lawyer to discuss your financial situation in detail. We do not charge a fee for this initial consultation since we feel that it is important to spend some time with you to determine the best solutions for your financial problems.

Chapter 7 Bankruptcy
Chapter 7 bankruptcy is best suited for people who are not behind on their home mortgage and vehicle loans (if they want to keep the home and vehicles) and who have large amounts of unsecured debt such as credit cards, medical bills, etc. A Chapter 7 bankruptcy will discharge most of your unsecured debt, which means that you will no longer have a legal obligation to repay those debts (Chapter 7 bankruptcy will not discharge student loans, alimony, child support and most taxes). As part of a Chapter 7 bankruptcy, you can surrender any property that has a secured loan against it such as a home mortgage or auto loan. This means that you will no longer have any personal liability for that loan, no matter how much the lender loses at a foreclosure sale or repossession auction. This is often done by people who have a vehicle that is in poor condition or a vehicle that is "underwater," where the value of the vehicle is far less than the loan against it. With the plummeting values of real estate during the past several years, we are now seeing more people surrender their homes. Values of real estate are negatively affected when there are increased numbers of foreclosed properties nearby. Your eligibility to file a Chapter 7 bankruptcy will also depend upon whether your income will qualify under the means testing requirement of the Bankruptcy Code (see below).

What Is The Means Test?
The Bankruptcy Code was revised in 2005 to include a means test for Chapter 7 bankruptcy filings. The means test sets guideline incomes for different size households. If you exceed the income for your household size you may not be able to file a Chapter 7 bankruptcy. An experienced bankruptcy attorney can advise you as to whether your income creates what is known as a "presumption of abuse.” As of November 1, 2019, means test guideline incomes were set as follows:
  • 1 person household = $ 47,904
  • 2 person household = $ 60,946
  • 3 person household = $ 67,931
  • 4 person household = $ 85,948
  • 5 person household = $ 94,948
  • 6 person household = $103,948
Do You Have A Vehicle Financed?
Reaffirmation agreements are typically required in Chapter 7 bankruptcies for financed vehicles that you wish to keep. Under the 2005 revisions to the Bankruptcy Code, if you wish to keep such a vehicle, you can be required to execute a reaffirmation agreement, if requested by the creditor. This means that you are giving up your bankruptcy protection with regard to that loan. You can always surrender your vehicle in a bankruptcy if the vehicle is in poor condition or "underwater.” Surrendering the collateral means you will not have any personal liability for that loan. Home mortgages do not require reaffirmation.

How Do We Protect Your Property?
We will explain "Exemptions" which allow you to keep your property. With the Exemptions allowed in North Carolina, you can protect your net equity in your property. Net equity means the fair market value of your property minus any loans against that property. For instance, if you own a house that has a value of $100,000 and you have a loan (mortgage) against that property in the amount of $75,000, then your "net equity" in that property is $25,000.

Exemptions which allow you to protect net equity in your property are as follows: $35,000 ($70,000 married) for your homeplace (homestead exemption) - if you are 60 years old and widowed, a higher exemption may apply; $3,500 for one vehicle per filer; unlimited amount for IRAs, 401Ks, 403(b)s or other ERISA-qualified retirement plans; up to $9,000 per filer (depending on the number of dependents) for household furnishings, appliances and personal effects; and up to $5,000 per filer as a "wild card,” if you have not used your entire homestead exemption, to apply against any of your property.

Most clients are able to keep their property using the exemptions described above to protect their home and vehicles, as well as their household and personal effects. If your net equity exceeds the amount allowed as exemptions, you can either surrender the property or settle with the Trustee in Chapter 7 bankruptcy cases. We'll also give you some tips on how to start rebuilding your credit right away. We'll never pressure you into making a decision about filing. It's your decision, and it's a tough decision. Our bankruptcy lawyers explain the facts. You decide.

Explore Your Options for a Fresh Start with Our Bankruptcy Lawyer

When you've decided to file for bankruptcy, you may be uncertain about whether to hire a professional bankruptcy lawyer. Given your already dire financial situation, it's easy to see how filing on your own and saving the expense of a lawyer might seem appealing. This, however, is an ill-informed and short-sighted view, as having a skilled bankruptcy lawyer on your side will likely save you money, on top of stress and aggravation! Your bankruptcy lawyer will help you understand all of your options and ensure that you pursue the ideal course of bankruptcy filing. They will also see to it that you comply with all requirements so that process proceeds smoothly and represent you at hearings to set you up for success. For any financial or legal situations that come up along the way, from how to protect your property or handle repossessions to how to deal with credit card loans or tax refunds, a bankruptcy lawyer will provide sound advice and guidance, always thinking of you and your family's best interests.

Contact our Chapter 7 debt relief firm to schedule an opportunity to talk with us about bankruptcy. There is no charge for the consultation. It is important that you know your rights. The bankruptcy lawyers at Vrsecky Law Firm look forward to speaking with you.
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