What Type Of Bankruptcy Should I File?
Individuals overwhelmed in debt are looking for solutions. Fortunately, there are different types of bankruptcy options available for those seeking debt relief, each with varying benefits.
The type of bankruptcy that you should file will always depend on your circumstances and the goals you wish to accomplish. Are you behind on mortgage payments but wish to keep your home? Are you simply looking to get rid of credit card debt? Did a major illness or injury result in extensive medical bills?
These types of considerations will likely determine which route is best for you.
Chapter 7 Bankruptcy (“Fresh Start”)
Chapter 7 is most beneficial for those with high credit card balances or outstanding medical bills. It is also beneficial for those who fall at or below certain income thresholds.
Often referred to as “fresh start” or “straight bankruptcy,” Chapter 7 allows consumers to get rid of unsecured debt in as little as 90-120 days, all while keeping valuable assets such as a vehicle or primary residence.
Chapter 13 Bankruptcy (“Reorganization Of Debt”)
A Chapter 13 bankruptcy is known as reorganization bankruptcy, as individuals generally combine their debts and make monthly payments to pay some debts over a three-to-five-year period.
This type of bankruptcy is viable for those who exceed the income threshold to file a Chapter 7 bankruptcy in North Carolina. It is also beneficial for those who want to stop vehicle repossession or are behind on their mortgage payments and wish to keep their home and prevent foreclosure.
Speaking with an experienced North Carolina bankruptcy lawyer from Gillespie & Murphy, P.A., about your assets and debts can help you get a better understanding of which filing is right for you. Schedule an appointment at any one of our four office locations in New Bern, Greenville, Jacksonville and Wilmington, North Carolina.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.