In-Depth Info: Bankruptcy

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[GRAPHIC: Gillespie & Murphy P.A., Call Toll-Free: (800) 453-9851,, 320 Main Street, New Bern, NC 28563, 321 North Front Street, Wilmington, NC 28401]

J. ALLEN MURPHY: When someone normally comes to us, at the time they come, they are in need because of financial difficulties due to a loss of a job, a cut in pay. It could be they're going through a divorce, they've been injured on the job. They may have a worker's compensation claim or a social security disability claim and therefore their income is less.

And they need a way to restructure their debt or eliminate certain debt so that they can make their house payment, make their car payment and get beyond the financial burden that's really putting a strain on their life.

The goal in a chapter 13 case is to eliminate unsecured debt, such as credit cards, medical bills, finance companies, deficiencies on repossessed vehicles, as well as restructuring car payments--

[GRAPHIC: Financial statement]

J. ALLEN MURPHY: --lowering interest on car payments catching up house payments to keep it out of foreclosure.

[GRAPHIC: Couple]

J. ALLEN MURPHY: We try to set up, at Gillespie & Murphy, a plan that's within the person's budget so that they can meet their financial obligations, get the fresh start that the bankruptcy code is intended to do so they can move forward with their life.