Bankruptcy Overview
Bankruptcy Overview - Charlotte, North Carolina, Lawyer
Chapter 7 ● Chapter 13 ● Credit Card Debt ● Credit Counseling
Many people who find themselves in a position to file for bankruptcy have arrived there in one of four ways: 1) a divorce; 2) unexpected medical expenses 3) credit card debt that spiraled out of control 4) temporary unemployment. No matter what preconditions led you to file for bankruptcy, know that you're not alone and that debt relief agencies like ours exist for the sole purpose of helping you through to the other side.
For a free consultation about filing for bankruptcy with The Cummings Law Firm, P.A., you can contact us online or by calling (704)512-0697.
The Difference Between Chapter 7 and Chapter 13 Bankruptcy
In Chapter 7 bankruptcy, you file a petition listing your creditors and all of your unsecured debt will be discharged - that is, wiped away. In return, a bankruptcy trustee will have to sell off any "nonexempt" assets that you own and put the proceeds toward paying off your debt. Most people do not have non-exempt assets. You can, in most cases, retain your car and your house by continuing to maintain payments and reaffirm your debt.
In Chapter 13 bankruptcy, you are usually proposing to retain all your belongings. Instead, all of your debts will be combined into one affordable monthly payment that you will have to make for the next three to five years. At the end of that time period, any remaining debt you have may be discharged completely.
Credit Counseling
Before you file for bankruptcy, federal law requires that you receive credit counseling. This may seem like a burden, but you will appreciate it eventually. You will get the opportunity to learn more about budgeting, finance and interest, and you will feel more in control when it comes to managing your expenses in the future. There are 15 agencies that are approved to by the court to deliver credit counseling services in Charlotte.
To schedule a free initial consultation to talk about your specific situation, contact The Cummings Law Firm, P.A. online or call (704)512-0697 and we will be happy to discuss your case.
