Wilmington, NC Chapter 7 Bankruptcy Lawyers Offering Legal Guidance As Clients Go Through Bankruptcy Court

If your debts have been adding up over the years and you can’t afford to pay them, Chapter 7 bankruptcy may be right for you. This legal process eliminates eligible debts so you no longer owe creditors, giving you a fresh financial start.
While many debtors find bankruptcy helpful in improving their financial situation, bankruptcy law is difficult to understand alone. This is why you should hire a knowledgeable bankruptcy attorney to learn if you qualify for Chapter 7 bankruptcy. Contact Gillespie & Murphy, P.A. for a free consultation with a helpful, skilled lawyer.

What Is Chapter 7 Bankruptcy?

There are a few chapters of bankruptcy, each of which has its own benefits and rules. Chapter 7 bankruptcy is a liquidation bankruptcy since you must sell non-exempt assets to pay as much of your debt as possible. A trustee will be appointed to determine which assets you must sell and which creditors to pay with the proceeds.
After this, your debts will be discharged and you can get a fresh start financially. Keep in mind that bankruptcy can eliminate most debts, but not all. The unsecured debt you can get discharged through Chapter 7 bankruptcy includes:

• Credit cards
• Payday loans
• Medical bills
• Personal loans
• Past-due utility bills

On the other hand, Chapter 7 bankruptcy typically doesn’t discharge the following type of debt:

• Student loans
• Alimony
• Child support
• Certain tax obligations, including tax liens on your property
• Court fees and penalties

If you have questions about what debt you can eliminate by filing a bankruptcy petition in North Carolina, contact our law firm to talk to a Chapter 7 bankruptcy attorney. We want to help you get personal loans, hospital bills, and other debt discharged, as this stops creditors from calling you to pay them. Call us to schedule a consultation with an experienced attorney who can help with filing your Chapter 7 case.

Who Can File for Chapter 7 Bankruptcy?

If you want the benefits of Chapter 7 bankruptcy, you must qualify to file. To do so, you must not have completed a Chapter 7 bankruptcy within the last eight years. In addition, if you had a bankruptcy case dismissed for fraud or abuse of the bankruptcy court within the last 180 days, you won’t be eligible to file bankruptcy.
You also must prove that your income is less than the median household income in North Carolina for a family the same size as yours. As such, Chapter 7 is often considered right for low-income individuals who can’t afford to pay off their debt through a payment arrangement with creditors.
If your income is slightly higher than the median, you still have a chance to qualify by taking the means test. This considers your income compared to your expenses to determine if you can send payments to creditors. If the means test shows you don’t have enough income to make payments to creditors, you might qualify for Chapter 7 bankruptcy.
If you meet the qualifications, your next step is to complete a credit counseling course before filing for Chapter 7. A bankruptcy lawyer at our law firm will guide you through the means test and the bankruptcy process if you qualify to file for Chapter 7, so contact us for a free consultation.

What Happens to Your Assets When You File?

Some debtors hesitate to file for Chapter 7 bankruptcy because they’re worried about losing their assets. However, it’s important to know that the average debtor eligible for Chapter 7 gets to keep most of their property due to exemptions.
For instance, North Carolina has a homestead exemption that lets individual debtors under the age of 65 keep up to $35,000 in equity for their homes. If you’re 65 or older when filing, you may be eligible to keep up to $60,000 in equity through the homestead exemption.
You can also exempt up to $3,500 for motor vehicles, ensuring you have a mode of transportation after your bankruptcy case. In addition, you can exempt $25,000 for college savings accounts and $2,000 in equipment for your career.
The personal property exemption lets you keep $5,000 worth of clothing, furniture, and household goods. You get an additional $1,000 per dependent in your household through this exemption.
Your Wilmington bankruptcy lawyer will let you know what exemptions you qualify for so you can keep some of your property after you’ve filed for bankruptcy in North Carolina. Contact our skilled Chapter 7 bankruptcy attorneys for a consultation to learn more about bankruptcy law, including the local rules on assets and what attorney fees you’ll pay.

How Can North Carolina Bankruptcy Attorneys Help?

If you’re curious about how filing for Chapter 7 bankruptcy will benefit you, contact the caring attorneys at Gillespie & Murphy, P.A. We can review your financial affairs to determine if Chapter 7 is right for you.
This will involve reviewing your income, secured and unsecured debt, and your history with the bankruptcy court. If you qualify for Chapter 7, we will advise you on everything to know about the bankruptcy system when filing, including what bankruptcy fees to pay, which debts will be discharged, what property you can keep, and what required courses to take.
When you hire a Chapter 7 bankruptcy attorney from our law firm, you will get support from a team with years of experience working with bankruptcy law in North Carolina. We realize that the process confuses most bankruptcy filers, so our North Carolina attorneys are here to answer questions about the means test, credit counseling classes, attorney fees, non-exempt property, and more. Call us at 910-597-4419 to schedule a consultation with an experienced bankruptcy attorney eager to help you with filing for Chapter 7 bankruptcy in Wilmington.