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New Bern Bankruptcy And Debt Relief Blog

Signs your credit card debt may be spiraling out of control

You, like many people in the Wilmington and Greenville areas, may rely on your credit cards to help you pay some of your monthly financial obligations. You may have a reliable source of income, make a decent wage and be responsible with your money. But if the only way for you to stay current on most of your bills is to charge your credit cards each month, you could be becoming overly dependent on them and digging a deeper hole for yourself. 

Sometimes, no matter how carefully you plan your spending, you may not be able to avoid creating more debt. Your financial obligations may simply be too much for your situation. Here are some signs that indicate you may need to get professional help for your credit card debts

Does divorce lead to bankruptcy?

Divorce affects everything from everyday life to planning a vacation. One of the biggest effects it has on your life is hurting your financial situation. Between the division of assets, legal fees and change in income, your bank account takes a big hit.

Is the inevitable result filing for bankruptcy? After all, the most common causes of bankruptcy are unexpected financial losses, not extravagant spending. With divorce being a huge life-changing event, it would make sense that it would lead to another one.

Debt settlement vs. bankruptcy: Which is better?

If you struggle to make the minimum payments on your credit debt, mortgage payments and other financial obligations in New Bern, you are not the only one. Times are hard, and many people who have good jobs and decent income find themselves drowning in debt. As overwhelming as your situation may seem, there are options such as debt settlement and bankruptcy that can help you regain your footing. 

Determining which option is best for your circumstances can be a challenge. Both options offer you the means to make your debts more manageable. But only one option can provide you with the financial peace of mind you seek. Take some time to review the following information about bankruptcy and debt settlement.

Have you experienced one of the most common causes of bankruptcy?

Filing for bankruptcy comes with a lot of stigma and feelings of embarrassment or despair. However, bankruptcy is usually not the result of high living or financial unintelligence, though they certainly can be causes. The reality is that the most common causes of bankruptcy are life events that many people across the board experience.

If any of these have come into your life, and you are considering bankruptcy as a response, know that you are not alone. You should also know that you have alternatives. You can discover more options by talking to a bankruptcy attorney.

5 reasons to not feel guilty about filing for bankruptcy

There is no reason to feel shame about seeking financial relief through bankruptcy. You might feel guilty about the financial position you have gotten into. While there are always good lessons to learn about finances and debt, you should not feel bad about exercising your right to get relief. 

You should actually feel liberated about filing for bankruptcy. Here are five reasons you should feel guilt-free about pursuing relief from your debts

How to deal with debt before filing for bankruptcy

If your phone is ringing nonstop and your wages are in danger of being garnished by creditors, you may wonder what you can do to get them to stop. You are not alone. Many people in the New Bern area are drowning in debt. They may have modest incomes, but there may be circumstances that make it challenging for them to pay their bills.

You may not enjoy the thought of talking to your creditors, but doing so can help put an end to any creditor harassment you may be experiencing. Here are some things you can do to regain your peace of mind and improve your financial situation.

Chapter 7 and Chapter 13 bankruptcy. What's the difference?

How Chapter 7 works

Chapter 7 deals with debt by selling off most of your property and dividing the proceeds among your creditors. The law provides several exemptions, allowing you to keep a house, car and personal property below a particular value. You may be able to keep secured property by signing an agreement to keep paying the debt on it even after the discharge of the rest of your debts. The entire process typically takes between three and six months.

You may not file a Chapter 7 petition until at least six years have passed since your last one. To petition, you need an income under a legal standard, which usually falls around the state's poverty line.

Chapter 13 repayment plan

Chapter 13, on the other hand, is a repayment plan. The trustee adds up your debts and comes up with a three-to-five-year repayment plan. Once the plan is complete, it discharges the remainder of your debt. The chief advantage of a Chapter 13 proceeding is that you get to keep secured property that North Carolina's Chapter 7 exemptions do not cover.

In order to qualify for a Chapter 13, you need enough regular disposable income to make payments every month. Disposable income is the money you have left over after you pay for life necessities such as rent, food and transportation. North Carolina also has an upper limit on how much you can owe when you file a Chapter 13 petition.

What happens to non-dischargeable debt in a bankruptcy?

Filing a Chapter 13 or a Chapter 7 bankruptcy in North Carolina can help substantially when you need a fresh start. However, there are some debts you will remain on the hook for even after bankruptcy.

Understanding the basic rules can help you as you make your decisions. Ultimately, talking to an experienced attorney about your circumstances is the best way to get the guidance that will work best for you.

Understanding Chapter 13 bankruptcy

If you are under financial stress and wondering how you can deal with mounting debt, bankruptcy may present a solution for you. Chapters 7 and 13 of the U.S. Bankruptcy Code detail two ways individuals may file for bankruptcy. Understanding how each of them work can help you figure out the right path for yourself.

In contrast to a Chapter 7 filing, which entails selling off non-exempt assets and paying part of the debt from the proceeds, Chapter 13 has a structured repayment plan as its cornerstone. Over a period of three to five years, a Chapter 13 debtor makes monthly payments to cover all or part of qualifying debts.

Bank of America facing huge fine over couple's mortgage disaster

People who begin having difficulty with their mortgage payments often hear the advice to work out a payment modification plan with their lender. Unfortunately for one California couple, such an attempt resulted in disaster.

Recently, U.S. Bankruptcy Judge Christopher Klein slapped Bank of America with a $46 million fine for the egregious way it treated a couple trying to work out a payment plan. The documents in the court case related how the couple contacted Bank of America to ask for modifications as they were experiencing financial difficulties. Representatives told the couple they could not get a modification until they stopped making payments.

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