FAQ

Myth: “I’ll Lose Everything I Own.”
Reality: Most filers keep their homes, cars, and personal belongings, thanks to exemptions that protect essential property.

Myth: “I’ll Never Get Credit Again.”
Reality: Many people rebuild credit in as little as 1–2 years after bankruptcy with responsible use of secured credit cards or timely payments on new loans.

Myth: “Both Spouses Have to File Together.”
Reality: Only the spouse who owes the debt needs to file. Joint debts are still owed by the non-filing spouse.

Myth: “It’ll Ruin My Credit Forever.”
Reality: A Chapter 7 typically stays on your report for 10 years, and Chapter 13 for 7 years, but you can start improving your score almost immediately after discharge and you can take a bankruptcy off your credit report (ask us how).

Myth: “I Can Pick and Choose Which Debts to Include.”
Reality: You must list all debts in your bankruptcy petition. You can’t exclude certain creditors you’d prefer to keep paying.

Myth: “All Debts Are Wiped Out.”
Reality: Some debts (like child support, alimony, and certain taxes) are not dischargeable, and student loans are generally only discharged under special circumstances.

Myth: “Bankruptcy Will Solve All My Financial Problems Permanently.”
Reality: It provides a fresh start, but doesn’t guarantee future financial stability. Good budgeting and financial habits are still essential.

Myth: “I Can Hide Assets and No One Will Know.”
Reality: Concealing assets is fraud—it can lead to criminal charges, denial of your discharge, or other penalties.

Myth: “People Will Judge Me.”
Reality: Bankruptcy is far more common than people think. It’s a legal right, and many successful individuals have filed. Business man and President Donald Trump has filed 6 times.

Myth: “I Can’t File If I’m Unemployed.”
Reality: Many unemployed people file. Your employment status can affect the chapter you file but doesn’t bar you from doing so.

Myth: “I Should Drain My 401(k) or Retirement First.”
Reality: Retirement accounts are typically protected in bankruptcy. Draining them often causes unnecessary penalties and taxes.

Myth: “If I File Chapter 7, I Have to Give Up My House or Car.”
Reality: As long as you’re current on payments and within exemption limits, you can usually keep them.

Myth: “Creditors Will Keep Harassing Me Even After I File.”
Reality: Once you file, the automatic stay stops most collections. If a creditor still harasses you, it’s illegal.

Myth: “All My Info Will Be Public; Everyone Will Know.”
Reality: Although bankruptcy is public record, it’s not widely advertised. Few people actively seek out these records.

Myth: “My Landlord Will Evict Me as Soon as I File.”
Reality: The automatic stay can temporarily halt eviction proceedings, but if you’re behind on rent, you’ll likely need to become current or make arrangements.

Myth: “I Won’t Be Able to Buy a House for 10 Years.”
Reality: Many can secure a mortgage within 2–4 years after Chapter 7 if they rebuild credit and meet lender criteria.

Myth: “I Should Max Out My Credit Cards Before Filing.”
Reality: Running up debt just before filing can be considered fraud and may prevent those debts from being discharged.

Myth: “If I Pay Back Some Debts First, I Don’t Have to List Them.”
Reality: Paying certain creditors while ignoring others can be seen as a preference payment, and the trustee can reverse it.

Myth: “Filing Under One Chapter Means I Can’t Switch to Another.”
Reality: You can often convert from Chapter 7 to Chapter 13 (or vice versa) if you qualify and circumstances change.

Myth: “Bankruptcy Is Only for the Poor.”
Reality: People with decent incomes might file Chapter 13 to restructure debt. Even wealthy individuals can file if their debts exceed what they can handle.

Myth: “Older Debts Are Automatically Discharged.”
Reality: No debt is “automatically” discharged; you must file bankruptcy and list those debts to have them eliminated.

Myth: “I Need a Minimum Amount of Debt to File.”
Reality: There’s no fixed minimum. However, filing makes the most sense when you truly can’t manage your debts.

Myth: “The Court Will Audit Every Detail of My Life.”
Reality: While you must provide thorough documentation, the trustee primarily checks financial records for accuracy and potential fraud.

Myth: “Filing Once Means I Can Never File Again.”
Reality: You can refile after certain time periods if needed. For example, 8 years between two Chapter 7 discharges.

Myth: “Bankruptcy Eliminates My Obligation to Pay Student Loans.”
Reality: Student loans are typically not discharged unless you prove undue hardship through a separate legal proceeding. This is happening more and more and can often be achieved. Ask us how.

Myth: “Everyone Will Know I Filed.”

• After paying the first $500, Cameron Bankruptcy Law will take your creditor calls, but not go to court for you. 
• Enjoy the automatic stay for immediate relief from most creditor actions as soon as you file.

1. Reality: Your employer or neighbors typically won’t find out, unless they specifically search records or you tell them.

Myth: “I Don’t Need to File; I Can Just Ignore Collections.”
Reality: Ignoring debt can lead to lawsuits, wage garnishments, and liens. Filing can provide the legal stay you need.

Myth: “I Will Automatically Lose My Car if I Still Owe Money on It.”
Reality: If you reaffirm (Chapter 7) or keep paying in Chapter 13, you can retain the vehicle, assuming you stay current on payments.

Unless someone is actively looking for it (like a lender or landlord), people won’t just randomly come across your bankruptcy filing.

When you file for bankruptcy, it does become a matter of public record, meaning certain people and organizations can find out, but it’s NOT advertised in NC. Outside of the people you tell, these are the people who may see it:

1. Creditors & Lenders – The people or companies you owe money to will be notified because they’re part of the case.

2. Your Attorney & the Court – If you have a lawyer, they’ll handle the filing and the court records.

3. Credit Bureaus – Bankruptcy appears on your credit report for up to 10 years.

4. Employers (Occasionally) – If your employer runs a credit check (usually for financial jobs), they might see it.

5. Landlords – If you apply for a rental, some landlords check credit reports and may see it.

6. The General Public? – Since bankruptcy is public record, anyone could technically find out, but they’d have to search court records. Who does that? Very, very few.

When you default on a debt and don’t file for bankruptcy, creditors will often call friends, family, and your workplace. It is pretty easy to deduce they are bill collectors. They will also call you a lot. Being called 10 times a day is not unusual. Bill collectors are very persistent! People have been fired because bill collectors have called a person’s workplace over and over again.

1. Age Requirements
   • No age limit: Whether 18 or 80, you can file in any U.S. state (including NC).
   • Under 18: Usually related to co-signed loans or identity theft — talk to Cameron Bankruptcy Law.

   Residency

   • Generally, you file in the federal district where you’ve lived for 90+ days.
   • If you moved recently, you may need to file in your old district or wait. If you decide to wait, you can start the paperwork immediately so we can file ASAP.
   • These are the North Carolina counties Cameron Bankruptcy Law generally serves: Alamance, Beaufort, Bertie, Bladen, Brunswick, Cabarrus, Camden, Carteret, Caswell, Chatham, Chowan, Columbus, Craven, Cumberland, Currituck, Dare, Davidson, Davie, Duplin, Durham, Edgecombe, Forsyth, Franklin, Gates, Granville, Greene, Guilford, Halifax, Harnett, Hertford, Hoke, Hyde, Johnston, Jones, Lee, Lenoir, Martin, Montgomery, Moore, Nash, New Hanover, Northampton, Onslow, Orange, Person, Pamlico, Pasquotank, Pender, Perquimans, Pitt, Randolph, Richmond, Rockingham, Robeson, Rowan, Sampson, Scotland, Stanly, Stokes, Surry, Tyrrell, Vance, Wake, Warren, Washington, Wayne, Wilson, and Yadkin.

For a larger list click here

1. Celebrities
   1. Toni Braxton (Singer)
   • Filed multiple Chapter 7 bankruptcies (1990s and 2010).
   • High medical bills and record label disputes contributed to her financial struggles.
   1. MC Hammer (Rapper)
   • Filed Chapter 11 in 1996 after accumulating significant debt and high living expenses.
   1. Michael Jackson (Singer) [Business/Restructuring]
   • Although he did not file personal bankruptcy, he faced severe financial difficulties; his Neverland Ranch was under threat of foreclosure until refinanced. (Often included in discussions of celebrity insolvencies.)
   1. 50 Cent (Curtis Jackson, Rapper/Entrepreneur)
   • Filed Chapter 11 in 2015 following court judgments and business-related financial issues.
   1. Larry King (TV/Radio Host)
   • Filed for bankruptcy in 1978 due to personal and professional debts.
   1. Mike Tyson (Boxer)
   • Filed for Chapter 11 in 2003, despite having earned hundreds of millions during his boxing career.
   1. Willie Nelson (Country Singer/Songwriter)
   • Didn’t file bankruptcy formally but faced severe IRS debts in the 1990s. He used the album The IRS Tapes: Who’ll Buy My Memories? to help settle his back taxes. (Often mentioned alongside celebrity financial troubles.)
   1. Teresa Giudice (Reality TV Star, Real Housewives of New Jersey)
   • Filed a joint bankruptcy with husband Joe Giudice in 2009; later faced legal issues related to fraud.
   1. Gary Busey (Actor)
   • Filed Chapter 7 in 2012 due to various debts including medical bills.
   1. Cyndi Lauper (Singer)
   • Filed for bankruptcy in the late 1980s before her big musical comeback.
   1. Kim Basinger (Actress)
   • Filed for bankruptcy in 1993 after a legal battle related to backing out of a film project.
   1. Marvin Gaye (Singer)
   • Filed for bankruptcy in 1976 largely due to unpaid alimony and tax issues.
   1. Jerry Lee Lewis (Rock and Roll Pioneer)
   • Filed for bankruptcy in the 1980s due to tax debts and lavish spending.
   1. Mark Twain (Author)
   • Although not a modern celebrity, the famed writer declared bankruptcy in 1894 after a series of bad investments.

   Well-Known Politicians & Public Figures

   1. Thomas Jefferson (D-R) (3rd U.S. President)
   • Struggled with debt throughout his life; and effectively died insolvent. (Formal bankruptcy laws were different then, but he was deeply in debt.)
   1. Abraham Lincoln (R) (16th U.S. President)
   • Did not file under modern bankruptcy laws, but he faced serious financial trouble in his early career, defaulted on loans, and had to repay creditors over many years.
   1. Ulysses S. Grant (R) (18th U.S. President)
   • Post-presidency Grant faced financial ruin due to bad investments. Though he didn’t go through modern bankruptcy proceedings, he nearly lost everything and had to write memoirs to pay debts.
   1. Donald Trump (R) (45th & 47th U.S. President)
   • Fled individual bankruptcy for his business entities SIX times (Atlantic City casinos and other ventures).
   1. Newt Gingrich (R) (Former Speaker of the House)
   • He didn’t file personal bankruptcy but had financial troubles in the late 1990s and early 2000s. (Often cited, though not a formal bankruptcy.)

1. Chapter 7 (Liquidation)
   • Discharges most unsecured debts if you pass the means test.
   • Typically lasts 4-6 months.
   • Non-exempt assets could be sold, but most filers keep essential property.
   • You can convert a case to Chapter 13 later if you qualify at the time of converting.
   • This is generally done to protect assets that would be taken in Chapter 7, or for any reason you don’t qualify for Chapter 7.
   • More details: Debt Free in 90 Days!

   Chapter 13

   Why Choose Chapter 13?

   • Income too high for Chapter 7
   • Desire to protect non-exempt property
   • Stop foreclosure & catch up on your mortgage
   • Protect co-signers during the bankruptcy via the co-debtor stay

   How It Works

   • 3-5-year plan (98% are 5-year plans) of monthly trustee payments.
   • Maximum Debt limits (April 2022):
   • Unsecured < $465,275
   • Secured < $1,395,875
   • No interest on unsecured debts in the plan most of the time.
   • Missed mortgage/car payments can be caught up.
   • Missing plan payments can lead to a Motion for Relief from Stay (foreclosure/repo risk).
   • You keep all property if you stay current with the plan (except Luxury Vehicles).
   • You can convert a case to Chapter 7 later if you qualify at the time of converting.
   • Additional fees apply depending on your situation.

   Chapter 11

   • For businesses or high-debt individuals above Chapter 13’s limits (e.g., President Trump filed 6 times).
   • Allows reorganization while operations continue.
   • More complex and much more costly.

   Chapter 12

   • Specialized for farmers or fishermen. Rare for the general public.

1. What It Stops
   • Collection calls/letters
   • Wage garnishments
   • Foreclosures (temporarily)
   • Repossessions
   • Lawsuits

   Exceptions

   • Child support or alimony enforcement continues.
   • Creditors may lift the stay if you fail to pay secured debts.
   • The Automatic Stay is not automatic if you have multiple prior bankruptcy filings.

   If you have had one prior case dismissed in the past year:

   • The Automatic Stay is initially for only 30 days.
   • You must file a motion to extend the stay, showing the court that you’re filing in good faith this time.
   • You must testify your situation has changed. Either you have more income, less debt, or both.

   If you have had two (or more) prior cases dismissed in the past year:

   • No automatic stay goes into effect at all.
   • You can still ask the court to impose the stay, but it’s no longer automatic.
   • You have to prove you’re filing in good faith.
   • You must testify your situation has changed. Either you have more income, less debt, less expenses, or a combination.

Significance

• Bankruptcy impacts your credit from the date of discharge for 7 years in Chapter  13 and 10 years in Chapter 7, unless you successfully have it removed (ask us how).
• It provides crucial relief if you’re overwhelmed by serious debt.

Helpful Resources:

• How Not Filing Bankruptcy Can Hurt You
• The Stress, Anxiety, and Depression of Debt
• Our Shark-Infested Waters Guarantee
• The Bible, Constitution, and Bankruptcy
• Bankruptcy Does Not Need To Be Scary With Us
• Our Personal Bankruptcy Story
• Our Bankruptcy Book
• Latest Timeline 
• Google Reviews
• YouTube Reviews
• BBB Rating
• Set up a Free Consultation: Schedule Here

1. Overwhelming Medical Bills
2. One of the leading causes of bankruptcy in the U.S.
3. Even with insurance, high deductibles, co-pays, or uncovered treatments can leave people in crippling debt.
4. Bankruptcy can discharge medical debt, providing relief.

1. Job Loss or Reduction in Income
2. Sudden layoffs, business closures, or reduced work hours can leave people unable to pay their bills.
3. Unemployment benefits often don’t cover all expenses, leading to missed payments and debt accumulation.
4. Bankruptcy can eliminate debt or provide a structured repayment plan (Chapter 13).

1. Credit Card & Personal Loan Debt
2. High-interest rates can make paying off balances nearly impossible, especially after missed payments.
3. Bankruptcy can wipe out unsecured debts like credit cards, payday loans, and personal loans.

1. Foreclosure or Eviction
2. Chapter 13 bankruptcy allows homeowners to stop foreclosure and catch up on missed mortgage payments over time.
3. Chapter 7 may temporarily delay foreclosure, giving the filer time to make arrangements.

1. Wage Garnishment
2. If a creditor wins a lawsuit, they can garnish wages, leaving the debtor with little money for necessities.
3. Filing for bankruptcy immediately stops wage garnishment through the automatic stay.

1. Repossession of a Vehicle
2. If you’re behind on car payments, the lender can repossess the vehicle.
3. Chapter 13 allows you to catch up on payments and keep your car.
4. Chapter 7 can discharge the deficiency balance if the car has already been repossessed.

1. Divorce or Separation
2. Divorce often leads to financial hardship, with legal fees, alimony, and child support payments.
3. Bankruptcy cannot erase alimony or child support, but it can eliminate credit card debt, medical bills, and loans, making financial recovery easier.

1. High Tax Debt (In Some Cases)
2. Older income tax debts (over 3 years old) may be dischargeable in bankruptcy.
3. Recent tax debts and tax liens usually aren’t discharged but can be managed in Chapter 13 repayment plans.

1. Business Failure or Self-Employment Debt
2. Small business owners often use personal credit to fund their businesses.
3. Bankruptcy can help close a failing business while eliminating personal liability for business debts.

•   Lawsuits & Legal Judgments
• If creditors sue you and win, they can:
• Garnish wages
• Seize bank accounts
• Place liens on property
• Bankruptcy can stop lawsuits and discharge certain court judgments.

1.   Unexpected Financial Hardship
2. Natural disasters, unexpected family emergencies, or caregiving responsibilities can drain finances.
3. Bankruptcy can provide a fresh start when personal crises create unmanageable debt.

1. Cosigner Liability
2. If you co-signed a loan for someone who defaulted, you may be fully responsible for the debt.
3. Bankruptcy can eliminate cosigned debt or provide a way to manage payments.

1.   Student Loan Hardship
2. Bankruptcy can sometimes reduce or eliminate them if you prove undue hardship.
3. Chapter 13 can allow structured repayment to avoid default. Bankruptcy can sometimes reduce or eliminate them if you prove undue hardship.

1.   Debt Collection Harassment
2. If creditors and collection agencies are constantly calling, filing for bankruptcy immediately stops collection efforts due to the automatic stay.

1.   Get Your Driver’s License Back
2. If you lose your driver’s license because of an accident while being uninsured, bankruptcy will get rid of the debt and allow you to get your driver’s license back.

1.   Peace of Mind & Mental Health
2. Financial stress can lead to anxiety, depression, and health issues.
3. Filing for bankruptcy provides relief, a structured plan, and a way forward.

If Debts Are Small…

• You might not need bankruptcy, as you still have legal protections against creditor harassment.
• If you don’t want to/can’t file bankruptcy, Cameron Bankruptcy Law can take Creditor Calls so they don’t harass you for $500/year (this does not mean we will represent you in court).

Other Options Than Bankruptcy

This is covered in another document: Debt Alternatives

Timing Concerns

• If major expenses are imminent (e.g., medical bills), waiting to file bankruptcy could let you include them.
• Courts limit how often you can file. A lawyer can advise on the best filing time.

Is There a Minimum Debt Required?

• Chapter 7: No strict minimum or maximum
• Chapter 13: No minimum, but has upper debt limits:
• Secured (mortgages, car loans): up to $1,395,875
• Unsecured (credit cards, personal loans): up to $465,275
• Owing a small amount that you can easily repay might lead to a court dismissal for abuse.

Pros

• Automatic stay halts lawsuits, garnishments, and calls.
• Potentially keep home/car (especially in Chapter 13).
• Can lower car payments
• Discharge provides a fresh start.

Cons

• Credit impact: 7–10 years (but can be removed—ask how)
• Possible loss of non-exempt assets (Chapter 7).
• Co-signers liable in Chapter 7.
• Filing is a public record.

1. Court Filing Fees (In addition to attorney fees)
   • Chapter 7: $338
   • Chapter 13: $313
   • Chapter 11: $1,738

   Attorney Fees

   • Chapter 7: $1,997 (Cameron Bankruptcy Law)
   • Chapter 13: $500 upfront for the first filing in 2 years (Cameron Bankruptcy Law).
   • The remaining $6,000 attorney fee is paid through a Chapter 13 plan.
   • Cameron Bankruptcy Law offers Layaway Plans.

   Additional Costs

   • Credit Counseling: ~$25
   • Debtor Education: ~$12

   Total Fees (in typical situations)

   • Chapter 7: $2,372
   • Chapter 13: $850 down with first filing (if you have filed multiple times, it can be more expensive).

1. Gather Documents
   • 2 years of tax returns
   • 6 months of pay stubs
   • Loan statements, credit card bills, bank statements
   • Driver’s license, SS card, vehicle registration
   • 6-month bank statements

   List All Debts & Assets

   • Thoroughly, including checking/savings, Venmo, PayPal, retirement, and crypto – EVERYTHING.

   Avoid Big Financial Moves

   • Don’t withdraw large sums or pay off certain creditors first.

   Consult an Attorney

   • Cameron Bankruptcy Law offers free consultations.
   • They’ll guide you on the best chapter, timing, and strategy.

Credit Impact

• A Bankruptcy actually IMPROVES a Credit score in most cases if your credit score is low. This is because it gets rid of bad debt and enables a Fresh Start. No more Late Payments and High Credit Utilization. 
• It can hurt if your score is high because it closes older unsecured debt accounts and limits your credit mix. This can change if you get a good mix of credit during or upon completion of bankruptcy.
• It increases the chance of loans by changing your Debt to Income ratio (DTI), which is a big part of why credit is given. You are no longer overextended. Most people are offered credit cards immediately after filing for bankruptcy.
• A bankruptcy does put a Derogatory Mark on your credit report, which will make most loans come at a higher interest rate, and some companies will not loan or rent to you – but many will.
• Many people can have credit scores of 720 or even higher 6 months after bankruptcy, and we put you in the position for this!
• It is possible to buy a house 2 years after Chapter 7 and while you are in Chapter 13, and we set you up to do this as soon as possible.
• We sign you up for a credit-building course that positions clients to buy a house ASAP!
• Chapter 7: Stays on your Credit Report for 10 years from the date of filing unless you remove it (ask us about removal, or go here.)
• Chapter 13: Stays on your Credit Report for 7 years from discharge date unless you remove it  (ask us about removal, or go here.)
• Many people rebuild faster with secured cards, on-time payments, and low balances.

Buying a House

• FHA Loans:
• Chapter 7: Wait 2–4 years
• Chapter 13: Can apply after 1 year of on-time payments while in bankruptcy.

Car Loans

• Possible immediately post-discharge, though higher interest initially.
• Some lenders specialize in post-bankruptcy financing.

Employment & Privacy

• • Illegal to fire you just for filing bankruptcy.
  • It’s a public record but rarely publicized unless high-profile.

1. Often Dischargeable
   • Unsecured: credit cards, medical bills, payday loans, utility bills, judgments, vehicles you are not keeping, real estate you are not keeping, etc.
   • Older tax debts (3+ years old, tax returns filed 2+ years ago, no fraud – other exceptions exist).
   • Certain court judgments (not from fraud or DUI).
   • Student loans: We charge $200 to evaluate, and $2,800 to attempt discharge (81% success). Many attorneys don’t do this.

   Rarely Dischargeable

   • Child support & alimony
   • Recent taxes or tax liens
   • Government fines, criminal penalties, DUI-related debts

   Special Cases

   • Mortgage: Not erased if you keep the home. A second mortgage might be stripped in Chapter 13 if the home’s value is below the amount owed on the first mortgage.
   • Fraud: Debts from fraud or lying on applications are usually not discharged.

Life After Discharge

• Fresh Start: Unsecured debts are gone in Chapter 7 or after completing Chapter 13.

Rebuilding Credit

• Secured cards, on-time payments, low balances
• Some lenders offer auto/home loans sooner than expected

Refiling Later

Waiting Periods for the Second Discharge (from the date of original filing):

• Chapter 7 → Chapter 7: 8 years
• Chapter 7 → Chapter 13: 4 years
• Chapter 13 → Chapter 7: 6 years
• Chapter 13 → Chapter 13: 2 years with discharge, 
• Chapter 13 → Chapter 13: immediately with NO discharge.
• Even without a second discharge, re-filing might delay collections if we can reestablish the Automatic Stay.
• This usually takes ~1 week.

1. Saving Your HomeChapter 7
   • Married couples in NC might use “Tenancy by Entirety” to protect a home from one spouse’s individual debt.
   • Both spouses need to be on the deed when the home was purchased (varies with other states).
   • Real Estate is not protected from Joint Debt unless it is under the exemptions.
   • Keep the home if you’re current and within NC homestead exemption:
   • $35,000 per owner under age 65.
   • $60,000 if 65+ and you once owned the home with your now-deceased spouse (as Tenants by the Entirety or joint tenants with right of survivorship) and you haven’t remarried.
   • If equity exceeds exemptions, the trustee may sell real estate.

   Chapter 13

   • Spread missed mortgage payments over 3-5 years, typically 5.
   • Prevents foreclosure if you stay current.

   Saving Your Car

   Behind on Car Payments

   • Chapter 13:
   • Catch-up payments in the plan.
   • Pay what the car is worth in a Cram Down IF you have owned the car for 2.5+ years and you are upside down on it.
   • Chapter 7:
   • Reaffirm (continue paying)
   • Redeem (pay the value of the vehicle in lump sum outright, usually by refinancing through a redemption loan).
   • The only company I know of that does Redemption Loans is 722 Redemption.

   Equity in Car

   • NC car exemption: $3,500 per owner, plus a possible $5,000 wildcard (total $8,500).
   • If equity exceeds this:
   • In Chapter 7, you might pay the trustee or risk a Trustee sale.
   • In Chapter 13, you pay extra equity in your plan.
   • A luxury car (over $650/month) may require justification.
   • Chapter 7: 
   • Reaffirm: continue paying) 
   • Redeem: Pay the value of the vehicle in lump sum outright, usually by refinancing through a redemption loan). The only company I know of that does Redemption Loans is 722 Redemption.

1. Will I See a Judge?
   • Generally no.
   • You’ll see a trustee at the 341 Meeting.
   • Judges step in only if there’s an objection or complexity.

   341 Meeting of Creditors

   • Trustee checks ID, and finances, and asks questions under oath.
   • Generally less than 5 minutes (sometimes less than a minute).
   • Creditors can appear but usually don’t.
   • In the Eastern District of NC, it is done on Zoom.
   • Ensure you have your Driver’s License with you.

   Lawsuits & Garnishments

   • Bankruptcy halts most lawsuits/garnishments.
   • Certain suits (child support, fraud, and other non-dischargeable debts) might continue.

A bankruptcy trustee is a person appointed by the court to manage and oversee your bankruptcy case. Their main job is to protect the interests of your creditors while making sure they follow the bankruptcy laws. The trustee’s role depends on the type of bankruptcy you file:

1. Chapter 7 Trustee (Liquidation)

• Reviews your assets and exemptions to see if any property can be sold to pay creditors.
• Sells non-exempt property (if any) and distributes the money to creditors.
• Examines your paperwork and looks for errors, missing information, or fraud.
• Conducts the 341 Meeting of Creditors, where they ask you questions under oath about your financial situation.

Motivation:

• A trustee tries to take as much as possible from the client to distribute to their creditors because the trustee gets paid on what they can take that is over the client’s exemptions.
• Generally, with Cameron Bankruptcy Law, the trustee takes nothing. It is Cameron Bankruptcy Law’s job to ensure the trustee takes as little as possible and things go as smoothly as possible.

1. Chapter 13 Trustee (Repayment Plan)

• Reviews your proposed repayment plan to ensure it follows the law and treats creditors fairly.
• Collects your monthly payments and distributes them to creditors.
• Monitors your case for any missed payments or changes in your financial situation.
• Helps ensure compliance, making sure you complete the plan and qualify for a discharge.

Motivation:

• A trustee gets paid a small percentage of what a client pays into bankruptcy, with the rest going to the creditors.
• The trustee wants to keep you in Chapter 13 because that is how they get paid.
• Unfortunately, there are monthly minimums you will have to pay or your case will get dismissed. The amount differs from case to case.
• It is Cameron Bankruptcy Law’s job to ensure you pay the minimum amount and that things go as smoothly as possible.

Your payment is calculated based on these factors:

• How much your family makes before taxes (not just the filer)?
• The size of your family.
• What the filer(s) own that is over-exemptions.
• How much do the filer(s) owe in Unsecured Debt?
• How much do the filer(s) owe in Secured Debt?
• How much do the filer(s) owe in Priority Debt?

1. Key Takeaways:

• • Chapter 7 trustees focus on selling non-exempt assets to pay creditors.
  • Chapter 13 trustees oversee your repayment plan and distribute payments.
  • Trustees don’t work for you—they represent the bankruptcy estate and ensure the process is fair for creditors.

1. In a Chapter 7Bankruptcy exemptions are rules that let you keep certain things you own, even when you file for bankruptcy. Think of them like “safe spots” where important property—like your house, car, or furniture—is protected from being taken and sold to pay your debts. Each state (and sometimes federal law) has its own list of what’s protected and how much of it you can keep.So, when you file for bankruptcy, you use these exemptions to make sure you don’t lose everything you need to live and work—things like a place to stay, a way to get to your job, and household items.

   In Chapter 13 Bankruptcy

   You usually keep all your property (like your home, car, and household items). Instead of selling your stuff, you set up a repayment plan that lasts three to five years. However, exemptions still matter because they help decide how much you must pay your creditors in that plan.

   In NC, the exception is you can lose “Luxury” vehicles. What these are depends on the Judge you get, but the strictest one defines a “Luxury” vehicle as one that is $650/m or more.

   The “Best Interests of Creditors” Test

   • In Chapter 13, your creditors should get at least as much money as they would’ve gotten if you had filed Chapter 7.
   • Under Chapter 7, the trustee can sell your non-exempt property and give the proceeds to your creditors.
   • With exemptions, you protect certain amounts of equity (like in a house or car). If your property is covered by exemptions, it won’t be sold in Chapter 7—so creditors wouldn’t get money from it.

   How It Affects Your Monthly Payment

   • If your property is fully exempt, your creditors don’t get anything extra for it in Chapter 7, so you won’t need to pay extra for it in Chapter 13 either.
   • If you have a property that’s partly non-exempt (worth more than the exemption covers), creditors in Chapter 7 would’ve gotten some money from selling that extra equity. So, in Chapter 13, you must pay at least that amount to creditors through your repayment plan.

   State vs. Federal Exemptions

   In North Carolina, you generally use North Carolina’s exemptions, which include a homestead exemption, vehicle exemption, etc. These exemptions are the same whether you file Chapter 7 or Chapter 13—the difference is how they influence what you’ll pay to creditors in your plan.

   Homestead Exemption (Your Home – You MUST Live Here)

   • Amount: Up to $35,000 in equity in real property that you live in, or a burial plot that you use as a residence.
   • Married Couples: Each spouse can claim $35,000 if both have ownership, possibly doubling to $70,000 for the property they live in.
   • Special Rule for Seniors: If you’re 65 or older and you once owned the home with a now-deceased spouse and where you still reside, you may be able to protect up to $60,000 of equity.

   Motor Vehicle Exemption

   • Amount: Up to $3,500 in one vehicle’s equity per filer/owner.
   • Example: If your car is worth $10,000 but you still owe $7,000 on it, the equity is $3,000—fully protected.

   Household Goods Exemption

   • Amount: Up to $5,000 total for household items like furniture, appliances, clothing, and more. Things are valued at Yard Sale Value, Pawn Value, or “Craig’s List” Value – NOT replacement value.
   • Dependents Bonus: You can add an extra $1,000 per dependent, up to $4,000 more.
   • Example: If you have two dependents, that’s an extra $2,000, for a total of $7,000 in household goods protection.

   Tools of the Trade

   • Amount: Up to $2,000 in professional tools, books, or equipment you need for your work or trade.

   Wildcard Exemption

   • Amount: If you haven’t used all your homestead exemption (or you don’t own a home), you can use up to $5,000 of any leftover amount to protect anything else—like a second vehicle or a favorite guitar.

   Life Insurance & Retirement Accounts

   • Life Insurance: In many cases, the cash value of a policy is exempt if your spouse or child is the beneficiary. This is generally for Whole Life, not Term.
   • Retirement Accounts: Generally, ERISA-qualified plans (like 401(k)s, 403(b)s, IRAs, and pensions) are also protected. These need to be kept in bank accounts with ONLY other non-exempt money or they may lose exemption.

   Personal Injury & Wrongful Death Recoveries

   • The money you receive for personal bodily injuries or a wrongful death claim may be exempt, though details can vary by case. These need to be kept in bank accounts with ONLY other non-exempt money or they may lose exemption.

   Other Exemptions

   • Health Aids: Necessary health equipment (like a wheelchair) is usually fully protected.
   • Child Support/Alimony: Payments you receive for child support or alimony are protected. These need to be kept in bank accounts with ONLY other non-exempt money or they may lose exemption.
   • College Savings: Certain 529 College Savings plan funds are protected if they’ve been in the account for a set period and meet other rules.

1. The Means Test in bankruptcy is a formula used to determine whether you qualify for Chapter 7 bankruptcy or if you have enough disposable income to repay debts under Chapter 13. It assesses your income, expenses, and family size to decide if you pass the test.How It Works:
   • Compare Your Income to Your State’s Median Income:
   • If your household income is below the state median, you automatically pass the Means Test and can file Chapter 7.
   • If your income is above the state median, you must go to “Calculate Disposable Income”.
   • As of 2/25/25 North Carolina’s Median income for family size is (heads in beds):
     1=$61,811 / 2=$78,415 / 3=$89,965 / 4=$109,590 / 5=$119,490 / 6=$129,390 / 7=$139,290 / 8=$149,190 / 9=$159,090 – $9,900 for each additional person.
   • Calculate Disposable Income:
   • Certain allowable expenses (housing, food, medical costs, childcare, etc.) are subtracted from your gross income.
   • If your disposable income is too high, you fail the Means Test and may need to file Chapter 13 instead.
   • What Happens if You Fail?
   • You can’t file Chapter 7 unless you prove special circumstances (job loss, medical issues, etc.).
   • You may still qualify for Chapter 13, where you repay debts over 3-5 years – generally 5 years.

   Who Needs to Take the Means Test?

   • Required for Chapter 7 filers, except for disabled veterans, military personnel on active duty, and certain business debtors.
   • Not required for Chapter 13, but income still impacts your repayment plan.

   Why It Matters:

   • Prevents high-income earners from abusing Chapter 7.
   • Determines eligibility for a full discharge versus a repayment plan.

1. Go to BKTimeline.com
2. Click on the PURPLE Button (You will download the Bankruptcy Disclosures).
3. Fill out the YELLOW Box (You are saying you downloaded the Bankruptcy Disclosures. It commits you to nothing. You are not saying you have read, understand, or agree with them.)
4. The Bankruptcy Timeline SHOULD load as a PDF. If not, click on the GREEN Button below the YELLOW box.
5. Save, print out, and follow the Bankruptcy Timeline to the WORD.

1. Discharge: $200 to check, $2,800 to attempt discharge (~85% success).
2. Partial discharge or better repayment terms might be approved if the court agrees you truly cannot repay.
3. Modification: $200 to check, $300 to modify. This is done OUTSIDE of bankruptcy – currently, Trump has put Income-Based Payments on hold.

1. Often Dischargeable If:
   • Taxes are 3+ years old
   • You filed returns 2+ years ago
   • IRS assessed the tax 240+ days prior to filing a bankruptcy case
   • No fraud or tax evasion

   Chapter 13 Considerations:

   • Tax debts can be included in your plan, halting interest/penalties.
   • Recent taxes typically remain.
   • Priority tax debts must be paid in full in Chapter 13.
   • An attorney must evaluate the tax debts to determine dischargeability.

Chapter 7

• Chapter 7’s are nearly 100% success rate with Cameron Bankruptcy Law.
• Basically, the only time they are denied is when the client lies about something.

Chapter 13

• Chapter 13 has a higher failure rate than Chapter 7’s.
• Main reasons for failure:
• They take 5 years to complete, and some disaster happens where the client can’t make payments over a few months, leading to a case dismissal.
• The client wants to keep more assets than they can afford (their eyes are bigger than their pocketbook).
• Example: The client has three cars when they only need one or two.
• They can keep all cars except “Luxury” cars  in Chapter 13, but it will increase their payments, which they may not be able to afford. The strictest Judge defines “Luxury” cars as payments over $650/m.

• Will I see a Judge? Probably not, unless there’s an objection.
• Can I keep a credit card? No, existing accounts close; you can reapply for new/secured later.
• How long does it take?
• Prep: Averages ~6 weeks (1 day possible if motivated, organized, and in an emergency)
• Chapter 7: ~3+ months post-filing
• Chapter 13: 3–5 years post-filing
• Can I pay certain unsecured debts voluntarily?
• Yes—after discharge, but list them in your petition.
• You won’t legally have to pay them.
• Move/change jobs in Chapter 13?
• Yes, but inform your attorney if income changes significantly.
• 341 Meeting scary?
• Usually 5 minutes, Q&A under oath.
• Everyone is surprised at how easy it was.
• What if I can’t afford an attorney?
• Cameron Bankruptcy Law has Layaway payment plans.
• In  Chapter 13, most attorney fees go into the plan.
• Most clients stop paying a debt that will be discharged in bankruptcy and use this “found” money to pay for their bankruptcy.

1. 1. Home In Foreclosure
   • Chapter 13: Repay arrears over 3–5 years, halting foreclosure (98% of the time, it’s 5 years).
   • Chapter 7: Delays it a few months.
   1. Car Equity
   • Chapter 7: Must pay the difference or risk sale if equity > exemptions.
   • Chapter 13: Keep the car but pay extra equity or lose it.
   1. Sheriff Sale Coming?
   • Yes, Chapter 13 before the sale can stop it and let you catch up.
   1. Employer Discrimination?
   • No, illegal to fire/discriminate for bankruptcy.
   1. ChexSystems Problems?
   • Owe a bank? List it.
   • After discharge, send the letter to ChexSystems.
   1. HOA Foreclosure?
   • In NC, HOAs can foreclose.
   • Chapter 13 helps you repay dues over time.
   1. Ex-Spouse Filed—Am I Liable?
   • A divorce decree doesn’t prevent creditors from chasing you.
   • Talk to a family lawyer and possibly a bankruptcy lawyer.
   1. Debt with a Co-Signer?
   • Chapter 7: Co-signer remains liable.
   • Chapter 13: Co-signer is protected if you repay the debt fully.
   1. List All Debts?
   • Absolutely. Hiding any is perjury and could jeopardize your discharge.
   1. Pay a Friend or Relative Before Filing?
   • No, that’s a “preference” payment and is not allowed.
   • The trustee can reverse the payment and take money back from the friend or relative.

1. Reaffirmation Agreements
   • You continue paying a specific secured debt post-discharge, usually a car loan.
   • Risk: If you default later, you owe the balance.

   Preferences & Fraudulent Transfers

   • Paying one creditor more than normal before filing or transferring property to avoid debt can be undone by the trustee.

   Income Changes in Chapter 13

   • A raise/job loss may require plan modification.
   • The trustee might seek higher payments, or your payments might be lowered.

   Motion for Relief from Stay

   • If you miss multiple mortgage/car payments, a creditor can ask to lift the stay and resume foreclosure/repossession.

• Cameron Bankruptcy Law has a Layaway plan for legal fees.
• Military Protections (SCRA, no means test for some Guards/Reservists).
• Student Loan Focus
• $200 analysis, $2,800 to pursue discharge (~85% success)
• Possible to reduce/modify payments for $500

How Will Bankruptcy Affect My Business?
Sole Proprietors:
Chapter 7: The trustee might sell business assets to pay debts.
Chapter 13: reorganizes, letting you pay over time.

Corporations, Partnerships, LLCs:
Chapter 7: usually liquidates.
Chapter 11: is expensive but allows the business to continue while debts are reorganized.

Can Bankruptcy Erase Medical Bills?
Yes, medical bills are unsecured (fully dischargeable in Chapter 7 or included in Chapter 13).

Will I Lose My Car?
Chapter 7: Generally not.. You can keep paying, possibly reduce payments, or surrender it if not worth keeping.
Chapter 13: The Judge may not let you keep a “Luxury Vehicle”. The Strictest Judge defines this as any payment over $650/month.

Car Equity:
Chapter 7: pay the difference or risk sale if equity > exemption.
Chapter 13: you pay any non-exempt equity through the plan.

Withdraw Money Before Filing?
No—that can appear suspicious.

Keep Some Credit Cards?
No—all debts must be listed. Cards close once discharged.

Does My Spouse Have to File Too?
Not always. If debts are solely yours, you can file alone. Joint debts remain the spouse’s responsibility if they don’t file.

Will Bankruptcy Stop a Lawsuit?
Yes! That’s the automatic stay at work. Cameron Bankruptcy Law can even take your creditor calls once you pay $500.

Stop Calls from Bill Collectors?
Yes—the automatic stay stops them. Cameron Law can even handle creditor calls for $500.

Stop Wage/Bank Garnishments?
Yes, except for child support.

Stop Repossession?
Chapter 7: will delay one unless you reaffirm or redeem.
Reaffirm means keeping the contract in the bankruptcy
Redeem means paying what the vehicle is worth in a lump sum, usually with https://722Redemption.com .
Chapter 13: will stop them and allow you to catch up.

Keep Property in Chapter 7?
Usually yes—exemptions protect most property. Cameron Bankruptcy Law will ensure you maximize your exemptions.

Secured vs. Unsecured Debt
Secured = collateral (house, car). Unpaid? They can repossess/foreclose.
Unsecured = no collateral (credit cards, medical bills).

One Spouse Filing?
The other might still owe joint debts. Shared assets could be at risk. Check with a lawyer.

Social Security Payments?
Protected—creditors can’t take them as long as they are not in the same account as non-exempt funds.

List All Assets?
Yes—hiding assets is illegal and can result in denial of your discharge, or even fines or jail.

When Are Debts Wiped Out?
Chapter 7: ~60-75 days after 341 Meeting.
Chapter 13: After 3-5 years of payments.

Can Creditors Still Contact Me?
No—the automatic stay stops them. If they persist, it’s illegal.

Pay Off Some Debts & Discharge the Rest?
No—all must be listed; the trustee may reverse preferential payments.

Will I Ever Get Credit Again?
Yes, often within months. Car loans in ~1 year, mortgages in 2–3 years.

Stop Wage Garnishment, Lawsuits, Foreclosure, Harassment?
Yes, with the automatic stay. If you stop paying secured debts, creditors can ask the court to proceed.

Wipe Out All Debts?
Many but not all:
Erased: Credit cards, medical bills, some taxes, certain divorce debts in Chapter 13, unsecured SBA/government loans (unless student loans).
Not Erased: Child support, criminal fines, mortgages (unless you remove a second mortgage in rare cases), some tax debts, student loans (unless you pursue discharge via adversary proceeding), etc.

Will Someone Come to My House?
Extremely rare, unless suspicion of hidden assets.

Property Not Mine?
Just list who actually owns it—like a roommate or family member. If your name is on the title or account, it must be listed.

Name on Mom’s Bank Account?
Court cares about who owns the money. If it’s hers, you’re fine. The account still must be listed on the petition if your name is on it.

Never Missed a Payment—Need Bankruptcy?
Possibly, if you’re draining savings/credit to stay afloat.

Rack Up Debt Pre-Filing?
No—it may be deemed fraudulent and not discharged.

Automatic Stay?
A legal freeze stopping creditor actions upon filing.

Section 341 Meeting of Creditors?
A short meeting with your trustee (creditors rarely show).

Creditor Objects to My Case?
A hearing is set; your lawyer handles it.

Miss a Chapter 13 Payment?
Risk dismissal. Contact your lawyer ASAP to modify or fix it.

Case Dismissed?
You lose protection; creditors can act again. You might refile if you remedy the issue.

Not Filed Taxes Yet?
Must file them before the Chapter 13 plan is approved.

Inheritance?
Within 180 days for a Chapter 7 (or any time in Chapter 13) might go to creditors.

Selling Property in Chapter 13?
Usually allowed, with court approval required first.

New Loan in Chapter 13?
Need court permission for car loans, credit cards, etc. You need court permission for new debts like car loans, financing, or credit cards generally over $10,000.

Stop Making Payments?
The case might be dismissed, and you could lose protection. Always talk to your lawyer first.

First Chapter 13 Payment Due?
The first payment is due on the 1st day of the following month after you file. If you file in June, the first payment is due July 1, for example.

Missed Mortgage Payment in Chapter 13?
Motion for Relief from Stay can lead to foreclosure if multiple payments are missed.

If You Miss Payments…
Call your lawyer immediately. Options:

• Catch up quickly
• Repayment plan
• Modify your Chapter 13 plan
• Mortgage modification
• Convert to Chapter 7
• Dismiss & refile

Preferences & Fraudulent Conveyances
Preferences: Paying one creditor more than usual before filing. The court can undo that payment.
Fraudulent Conveyances: Transferring assets to avoid paying creditors.

Secured Debt or Unsecured?
Secured = collateral-based (house, car, etc.).
Unsecured = no collateral (credit cards, medical bills).

Can I Get a Loan After Bankruptcy?
Yes, many lenders offer mortgages in 2–4 years, cars immediately (higher interest), and credit cards soon after discharge.

Stop a Lawsuit?
Yes, except for child support/fraud suits.

Cosigner Affected If Not Filing?
Chapter 7: They’re liable.
Chapter 13: Protected if the debt is fully repaid in the plan.

Live Normally?
Yes—buy a house/car, move, change jobs. Court permission is required for major financial transactions (generally over 10K) while in Chapter 13.

Debts in Other States?
Yes, list them. Location doesn’t matter.

Discharge of Debt?
You no longer owe it. The creditor can’t collect because it is no longer your debt.

Denied Chapter 7 Discharge?
Fraud, lying, hiding assets, or a recent prior discharge. Honesty is crucial.

Trustee in Chapter 7?
Oversees your case, may sell non-exempt assets, and ensures rules are followed.

Can’t Afford a Lawyer?
Stop paying dischargeable debts.
Ask family/friends.
Roll fees into the Chapter 13 plan. Often the DOES NOT increase your payments!

Military Members?
Special rules: no means test in some cases, SCRA protections, possible discounts.

Reaffirmation Agreement?
Agree to keep paying a debt post-discharge. Caution if you might default later.

Retirement Safe?
Typically yes: 401(k)s, IRAs, and pensions are protected.

No Automatic Stay?
If multiple recent filings or a creditor lifts the stay.

Vacation in Chapter 13?
Yes, but big spending might need trustee approval. Budget carefully.

Own Stuff After Bankruptcy?
Yes—exempt property, new property earned post-filing, retirement accounts, etc.
Inheritance/settlements within 180 days of Chapter 7 filing or any time during Chapter 13 might go to creditors.

Pay Off Chapter 13 Early?
Only if you pay 100% of unsecured debts. Or a hardship discharge might be possible.

Payday Loans Dischargeable?
Yes, they’re unsecured. NOTE: Payday Loan companies will often lie to you.

Medical Bills?
Yes, typically wiped out/discharged.

Filing in the Military?
Yes, with no means test for some Reservists/Guardsmen plus SCRA protections.

Open a Bank Account if in ChexSystems?
Yes, list the owed bank; after discharge, send a letter to ChexSystems.

Future Windfalls
Are you expecting an inheritance, lawsuit settlement, or other money soon? Must disclose it.
The trustee might use it to pay creditors.

Past Windfalls
If you got a large sum in the 3 years, you must also disclose it.

Do I have to list all my money?
YES!
Cash, checking, savings, PayPal, Venmo, Cash App, retirement accounts, crypto—everything!
If they hide money and the Trustee finds out, their case could be denied or even lead to fraud charges.

How Will Bankruptcy Affect My Business?

Sole Proprietors:

• Chapter 7: The trustee might sell business assets to pay debts.
• Chapter 13: reorganizes, letting you pay over time.

Corporations, Partnerships, LLCs:

• Chapter 7: usually liquidates.
• Chapter 11: is expensive but allows the business to continue while debts are reorganized.

Can Bankruptcy Erase Medical Bills?

• Yes, medical bills are unsecured (fully dischargeable in Chapter 7 or included in Chapter 13).

Will I Lose My Car?

• Chapter 7: Generally not. You can keep paying, possibly reduce payments, or surrender it if not worth keeping.
• Chapter 13: The Judge may not let you keep a “Luxury” Vehicle.
• The Strictest Judge defines this as any payment over $650/month.

Car Equity:

• Chapter 7: Pay the difference or risk sale if equity > exemption.
• Chapter 13: You pay any non-exempt equity through the plan.

Withdraw Money Before Filing?

• No—that can appear suspicious.

Keep Some Credit Cards?

• No—all debts must be listed. Cards close once discharged.

Does My Spouse Have to File Too?

• Not always. If debts are solely yours, you can file alone.
• Joint debts remain the spouse’s responsibility if they don’t file.

Will Bankruptcy Stop a Lawsuit?

• Yes! That’s the automatic stay at work.
• Cameron Bankruptcy Law can even take your creditor calls once you pay $500 (before filing).

Stop Calls from Bill Collectors?

• Yes—the automatic stay stops them.
• Cameron Law can even handle creditor calls for $500 before filing.

Stop Wage/Bank Garnishments?

• Yes, except for child support.

Stop Repossession?

• Chapter 7: Will delay one unless you reaffirm or redeem.
• Reaffirm: Keeping the contract in the bankruptcy.
• Redeem: Paying what the vehicle is worth in a lump sum, usually with 722 Redemption.
• Chapter 13: Will stop them and allow you to catch up.

Keep Property in Chapter 7?

• Usually yes—exemptions protect most property.
• Cameron Bankruptcy Law will ensure you maximize your exemptions.

Secured vs. Unsecured Debt

• Secured = collateral (house, car). Unpaid? They can repossess/foreclose.
• Unsecured = no collateral (credit cards, medical bills, repo, etc).

One Spouse Filing?

• The other might still owe joint debts.
• Shared assets could be at risk.
• Check with a lawyer.

Social Security Payments?

• Protected—creditors can’t take them as long as they are not in the same account as non-exempt funds.

Disability?

• Protected—creditors can’t take them as long as they are not in the same account as non-exempt funds.

4019(k), 403(b), & IRAs?

• Protected—creditors can’t take them as long as they are not in the same account as non-exempt funds.

List All Assets?

• Yes—hiding assets is illegal and can result in denial of your discharge, fines, or jail.

When Are Debts Wiped Out?

• Chapter 7: ~60-75 days after 341 Meeting.
• Chapter 13: After 3-5 years of payments.

Can Creditors Still Contact Me?

• No—the automatic stay stops them.
• If they persist, it’s illegal.

Pay Off Some Debts & Discharge the Rest?

• No—all must be listed; the trustee may reverse preferential payments.

Will I Ever Get Credit Again?

• Yes, often within months.
• Car loans in ~1 year.
• Mortgages in 2–3 years.

Stop Wage Garnishment, Lawsuits, Foreclosure, Harassment?

• Yes, with the automatic stay.
• If you stop paying secured debts, creditors can ask the court to proceed.

Wipe Out All Debts?

• Many but not all:
• Erased: Credit cards, medical bills, some taxes, certain divorce debts in Chapter 13, unsecured SBA/government loans (unless student loans).
• Not erased: Child support, criminal fines, mortgages (unless removing a second mortgage in rare cases), some tax debts, and student loans (unless discharged via adversary proceeding).

Will Someone Come to My House?

• Extremely rare, unless suspicion of hidden assets.

Property Not Mine?

• Just list who actually owns it—like a roommate or family member.
• If your name is on the title, account, or deed it must be listed.

Future & Past Windfalls

• Future: Expecting an inheritance, lawsuit settlement, or other money soon? Must disclose it.
• Past: If you received a large sum in the past 3 years, you must disclose it.
• If money is hidden and the Trustee finds out, the case could be denied or result in fraud charges.

Banks & Credit Unions to Avoid

• Any Bank or Credit Union you have a debt, do not use for checking or savings. They can do what is called a “Set-Off” where they can take money out of your account to pay themselves.
• Never owe a Credit Union more than one debt! They can do what is called “Cross-Collateralization” which essentially makes multiple debts one. This means if you get behind on a credit card they can take your car.
• Wells Fargo – IMHO the worst bank in the U.S. They will freeze your account in a bankruptcy.
• Bank of America – IMHO the 2nd worst bank in America. Does not play well with bankruptcy.
• Truliant Federal Credit Union – IMHO the worst credit union in America. Does not play well with bankruptcy.

Evaluate Your Finances

• Are you truly unable to pay debts without bankruptcy?

Talk to a Cameron Bankruptcy Law

• Free consultations are common.
• They’ll see if Chapters 7, 13, or possibly 11 or 12 suit you best.

Gather Documents & Prepare

• The more organized you are, the quicker the process.

File When Ready

• You have to pay $50 to get into our software.

fax (866) 851-2599