Eastern North Carolina Bankruptcy Lawyer
We understand your concerns and we will fight for the well-deserved peace of mind for you and your family. Cameron Bankruptcy Law attorneys in North Carolina are uniquely prepared to advise clients on whether bankruptcy is necessary, which kind of bankruptcy is most favorable, and what, if any, activities should be taken prior to filing for bankruptcy. The legal team will listen to your experience and, at the very least, arm you with the facts necessary to make an informed decision on behalf of yourself and your family.
Have you already experienced bankruptcy filing but are now faced with an unresolvable financial predicament despite your best efforts? If you are facing wage garnishment as a result of unforeseen medical expenditures, outstanding tax arrears, or any other form of debt that you’re no longer able to pay, you can refile for bankruptcy protection.
Bankruptcy is a legal process that enables persons who are unable to pay their bills to get permanent debt relief via a bankruptcy discharge. Chapter 7 bankruptcy, Chapter 11 bankruptcy, and Chapter 13 bankruptcy are all available under the Bankruptcy Code.
How North Carolina Bankruptcy Works
In the majority of cases, filing for bankruptcy in North Carolina is identical to filing in another state. Bankruptcy is governed by federal law, not North Carolina state law, and it works by terminating contracts between you and your creditors—this is how you get a fresh start.
However, North Carolina’s laws play a crucial role as well. They determine the property you are permitted to retain in your bankruptcy case. Additionally, you will need to be familiar with additional filing information, which we will discuss after going over some fundamentals.
How Often Can You File Bankruptcy
While you may file for bankruptcy as often as you like, obtaining a discharge is another different story.
Thus, the question is not about how frequently you may file for bankruptcy as it is how regularly you can file.
The frequency with which you can obtain another bankruptcy discharge is determined by various factors: Your bankruptcy type, the date of your previous bankruptcy, and the outcome of your case.
We shall discuss how frequently you can have your debts discharged in bankruptcy in this article. Contact the Cameron Bankruptcy Law Office now for more information about filing for bankruptcy following a discharge.
What Are the Advantages of Filing for Bankruptcy?
If you have ever filed for bankruptcy, you are probably well aware of its perks. Bankruptcy can be beneficial if you are deeply in debt because it provides a financial fresh start.
Bankruptcy provides a fresh start by paying creditors at a reduced rate and discharges your debt. There are two ways to remove this debt: by liquidating your non-exempt assets in a Chapter 7 bankruptcy; or, in a Chapter 13 bankruptcy, through a three- to five-year repayment plan.
Additionally, bankruptcy halts creditor collection efforts, wage garnishment, and lawsuits via a court-ordered injunction known as an “automatic stay.” When you declare bankruptcy, an automatic stay takes place, blocking the majority of creditors from collecting debt from you.
Time Limits on Receiving a Second Bankruptcy Discharge
Financial disaster might strike you multiple times. A failing body, marriage, or business may strike unexpectedly, leaving you with unpaid bills following a bankruptcy discharge.
Bankruptcy is a viable alternative, just as it was the first time you encountered financial difficulties. However, you may need to wait a period of time before filing for bankruptcy and having your obligations wiped out once more.
The timing of a subsequent bankruptcy discharge is contingent upon the resolution of two issues:
1. Which Chapter of Bankruptcy Have You Filed Previously and Which Chapter Do You Wish to File Now?
The period required to obtain another bankruptcy discharge is determined by whether your previous bankruptcies were Chapter 7 or Chapter 13. Generally, you will wait less time after a prior bankruptcy discharge to file for Chapter 13.
After a Chapter 13 discharge, you must wait two years from the date of your filing to file for Chapter 13. Chapter 13 repayment programs, on the other hand, are frequently completed in three to five years before debts are erased. Thus, you may apply for Chapter 13 bankruptcy immediately following the conclusion of your first.
If you petition for Chapter 13 after receiving a Chapter 7 discharge, you have a four-year waiting period. After filing for Chapter 7, you must wait four years before filing for Chapter 13.
If you choose to file for Chapter 7 bankruptcy following a prior Chapter 7 discharge, you must wait eight years.
Six years after filing for Chapter 13 bankruptcy, you may file for Chapter 7. If, however, you have repaid all unsecured obligations in your Chapter 13 repayment plan, you may immediately petition for Chapter 7. The same is true if you pay off 70% of your unsecured loans and make every attempt to adhere to the plan.
2. How Did Your Previous Bankruptcy Proceed?
When you can file for bankruptcy again is highly dependent on the outcome of your previous case. Nothing changes if your debts have been discharged and the court has concluded your case. You must wait between two and eight years, depending on the chapter of bankruptcy you previously filed and wish to file now.
If, on the other hand, your debts have not been cleared and your lawsuit has been dismissed, different regulations apply. If the bankruptcy court rejects your case without prejudice, you may be barred from filing for 180 days. When court orders are violated or bankruptcy laws are exploited, a case is dismissed with prejudice.
Bankruptcy fraud, which includes failing to disclose assets, lying, or acting in bad faith, has more severe penalties. The bankruptcy court may prohibit you from filing for bankruptcy for an extended period of time or for the remainder of your life. If this occurs, you will be unable to obtain a discharge of your debts indefinitely.
Dismissal of your bankruptcy case by a court may also shorten the duration of your automatic stay. A dismissal within one year of filing bankruptcy may result in a 30-day automatic stay. Additional dismissals within one year of filing can result in the loss of any automatic stay.
A Raleigh, North Carolina Bankruptcy Attorney Can Assist You in Filing for Bankruptcy Once More
If you have credit card debt, student loan, tax debt, secured debt or unsecured debt, you can consider bankruptcy. If you are considering re-filing for bankruptcy, a knowledgeable Raleigh NC bankruptcy attorney can give you legal advise. It is possible to file bankruptcy twice.
We can explain your alternatives and assist you in assessing your situation at Cameron Bankruptcy Law. Your credit score is important to us. To learn more, contact us immediately for a FREE consultation.