Pre-Bankruptcy Instructions for Raleigh, NC
If you have any ideas about fixing anything financial pre-bankruptcy, CONTACT US FIRST!
While going through the bankruptcy process, we are your best friends. Please DO NOT MAKE DECISIONS WITHOUT CONSULTING US. It will make your case go much more smoothly and will eliminate many potential problems.
Selling / buying before a bankruptcy
Do NOT sell anything!
Do NOT give anything away!
Do NOT buy anything other than ordinary household goods (groceries, cleaning supplies, etc.) during the 90 days before filing bankruptcy. Anything purchased 90 days before filing CANNOT BE EXEMPT in an NC bankruptcy, AND YOU COULD LOSE IT.
Do NOT borrow
any more money or charge anything. Do not take cash advances.
Do NOT repay money to family members.
If you cannot afford to pay all of your bills, make payments on your unsecured non-priority debts your last priority. Ask us what this means!
Stop using your credit cards. Use of credit cards could delay filing.
Don’t Pay Off
DO NOT try to pay off a debt with more than $600 in the 3 months prior to filing. The Trustee can take the payments and redistribute them to all your creditors. You also SHOULD NOT try to pay off your friends and relatives.
Make regular, timely payments on any secured debts for which you would like to keep the collateral (such as your car payments if you wish to keep your vehicle). If you do not want to keep the collateral for a particular debt, you may not need to make any further payments on that debt.
If you expect to inherit anything within six months of filing, it may be taken in the bankruptcy. If someone else is listed in the will instead of you (perhaps your children or other relatives) his/her/their inheritance(s) should be protected from your North Carolina (NC) Chapter 7 Bankruptcy.
Whole Life Insurance is the type of life insurance that builds cash value from which you can borrow or that you can withdraw. This is as opposed to Term Life Insurance which is payable only upon death. If you have Term Life Insurance, it will not cause any problems with YOUR bankruptcy. If you are the beneficiary of ANY life insurance policy, and the person who is insured dies before your Chapter 7 bankruptcy is discharged, or shortly thereafter – YOU COULD LOSE THE BENEFIT (MONEY)! It would be best to have the insured person list someone else as beneficiary until at least 180 days after your bankruptcy discharge.
Whole Life insurance is not a problem IF the beneficiaries are your spouse and/or children. If the beneficiaries listed are anyone else, the life insurance policy could be non-exempt and taken by the Trustee in the bankruptcy.
Make sure you owe nothing to the institution with which you do your banking. They may be able to do a "set off" and take the money you owe them from your account(s) with them WITHOUT YOUR APPROVAL. They also may be able to "freeze" your account throughout the bankruptcy so you will not be able to access your money.
We will need the Retail value of all your vehicle(s) from NADA.com (if possible) for your NC Bankruptcy, as well as the current payoff on any liens against them in order to complete your North Carolina (NC) Bankruptcy.
Each individual is allowed $3,500 (for NC exemptions) equity in one vehicle in a NC Bankruptcy. Sometimes we can protect more if you don’t have any equity in a home, or if the vehicle is used in your profession. The vehicle MUST be titled in the name of the person claiming the exemption. Any liens count against the equity.
If you owe substantially more
than the vehicle(s) is worth, we MAY be able to save you a lot of money. In a North Carolina (NC) bankruptcy you have the option to pay off the vehicle in one lump sum for what the vehicle is worth, not what is owed. Because you are going through a North Carolina bankruptcy, you probably don’t have that kind of money laying around, and if you did, it would probably be taken by the trustee in the NC bankruptcy. We work with a lending institution that may be able to lend you the money to pay off the vehicle. It will probably be a much higher interest rate, but the principal will be much lower, resulting in a lower monthly payment and a lower total bill. If this interests you, you have a stable income, and your vehicle has less than 100,000 miles on it, then contact the institution below and tell them Sheree Cameron of Cameron Bankruptcy Law, 1719 Crag Burn Lane, Raleigh, NC 27604 will be representing you. Our office and theirs MAY be able to negotiate a better deal for you, or if and the security interest was placed on the vehicle within 910 days of filing the bankruptcy, we may be able to redeem it.
United Services Credit Union
(866) 810 0809
(888) 721-2800 ext. 222
If you are going to buy a car from a relative or friend
before filing a bankruptcy, DON’t. CONSULT US FIRST!