What Is Chapter 7 Bankruptcy?

Did you know you can erase thousands of dollars in unsecured debt like credit card bills and medical expenses in as little as 90-120 days? Through Chapter 7 bankruptcy, you can.

At Gillespie & Murphy, P.A., our attorneys have helped thousands of individuals throughout eastern North Carolina get a fresh financial start through Chapter 7 bankruptcy.

Getting Unsecured Debt Wiped Out

Chapter 7 bankruptcy is often referred to as "fresh start" bankruptcy. It allows consumers to clear most unsecured debt while keeping necessary assets such as a home, car, retirement plan, etc. — in as little as 90-120 days.

Who Should File Chapter 7 Bankruptcy In North Carolina?

If you are facing overwhelming credit card debt, home foreclosure, car repossession or high medical bills and wish to simply get out from it all, Chapter 7 bankruptcy could be right for you.

Answers To Common Concerns

Although the idea of erasing unsecured debt sounds fantastic to most people, many have concerns — and rightfully so. Let us answer a couple of common questions individuals in similar circumstances have asked:

How Will Bankruptcy Affect My Credit Score?

If you are contemplating bankruptcy, it's likely you already have a low credit score. If you file for bankruptcy, your score will drop further, but not by much.

Many people are able to rebound and improve their scores not long after they receive a discharge. Some can secure auto loans and mortgages in just a few years.

Can I Keep My House Or Car If I File For Chapter 7 Bankruptcy?

If you wish to file Chapter 7 bankruptcy and keep your house or vehicle (and continue making mortgage and vehicle payments), you can, as long as your home equity is not more than the allowable exemption amount: $35,000, or $70,000 for married couples. If you own your home as a married couple, you may be eligible to claim a special exemption (Tenants by Entireties) to protect your home.

You can also keep your car and avoid repossession (and continue making payments) as long as the equity in your vehicle is not more than $3,500. However, you may be eligible to claim additional exemptions up to $5,000 - $10,000, depending on the vehicle ownership and specific factors in your case.

Looking for more answers? Visit our FAQ section today.

Let Our Team Help

At Gillespie & Murphy, P.A., our bankruptcy lawyers have helped countless people file Chapter 7 bankruptcy in New Bern, Wilmington, Greenville, Jacksonville and surrounding North Carolina communities. With over 40 years of collective experience, we are confident we can find a solution to your financial distress.

Call 252-558-1374 today to learn more or send us an email. Free consultations.

We are a debt relief agency under the United States Code. We help people file for bankruptcy relief under the Bankruptcy Code.