If you are currently ordered to pay child support and cannot afford your payments, you may be wondering if filing for bankruptcy could help you. The quick answer is that filing for bankruptcy will not reduce or terminate your child support payments. However, filing for bankruptcy could help you adjust your budget, so you have the money available to make the payments.

Who Can Change Your Child Support Payments?

The only person/court that can change your child support obligation is a family court judge. If you are struggling to make your child support payments, your first step should be to go back to family court and discuss your financial situation. If you decide to simply not pay, the state of North Carolina’s Child Support Enforcement Division has many tools that they can use to make you pay, some of those things include:

• Contact your employer and withhold money from your paycheck.
• If you are not working, they can withhold money from your unemployment payments.
• Take any state or federal tax return monies you may be owed.
• Your driver’s license can be suspended or revoked.
• Report the delinquency to the credit bureaus.
• Charges could be filed against you in court.
• A warrant for your arrest could be issued.

It is important for you to make your child support payments and take that obligation seriously. Not complying with the court order can cause serious problems for you and your finances.

Can Bankruptcy Help with Your Child Support Obligations?

As mentioned above, bankruptcy cannot modify child support payments, but it can help you eliminate some other debt making it easier for you to make the payments ordered by the court. If your bankruptcy eliminates some of your debts and you are still not able to make your support payments, a family court judge may see that you are trying to get yourself in a better position to make your payments. This could go a long way in helping your case for a reduction in support payments.

If you file Chapter 7 bankruptcy in the state of North Carolina, you are able to discharge medical bills, personal loans without collateral, credit card debt, delinquent utilities, and some other unsecured debts. By shedding debts such as these, there should be room in your budget for your child support obligations.

If you file Chapter 13, you will be given time to catch up on your obligations if you are already behind. Chapter 13 is specifically designed to help filers catch up on debt, but remember, no type of bankruptcy filing will reduce or discharge child support payments.

Bankruptcy Helps You Get Back on Track with Your Finances

Chances are, if you are delinquent on child support payments, you are probably behind on other bills and debts. At Craft Law Offices we understand that is a terrible position to be in and it could be very stressful living with this day to day. Debt collectors may be calling you at home and at work. You may feel embarrassed or guilty being behind on your child support payments. The stress of all this adds up and you do not know what to do.

Call Craft Law Offices and schedule your free bankruptcy consultation. Leslie will discuss your situation and help you decide if filing for Chapter 7 or 13 bankruptcy could help your financial situation. Let Leslie guide you through the process so you can change your financial future, call today at 252-752-0297 or schedule online at https://craftlawoffice.com/schedule-appt/.

The debt level of Americans has been rising for years. Less than twenty five percent of households in America are debt free. In a 2021 study by Experian, Americans had over $95,000 of debt. Over time, this amount of debt can take a toll on a person.

Debt can be an unwelcome burden. The impact can increase a person’s stress level and take a toll on their everyday life. Paying off your debt requires patience and persistence, so here are a few tips that may be able to help you pay down your debts and improve your financial situation.

Create and Live on a Budget

You may have tried to make a budget and live on it in the past, but for whatever reason you were not able to adhere to it.

You could have an issue with your debt-to-income ratio. This is where you do not make enough money to cover your monthly living expenses and your outstanding debts. A situation like this could make budgeting difficult.

However, if you don’t try living on a budget you are making the decision to continue the cycle of living paycheck-to-paycheck. Creating a budget could actually provide you with a plan for not only spending, but saving, money. This can give you peace of mind. If you struggle with overspending, learning to live on a budget could help reduce the guilt you feel when you spend money.

Committing to a budget and sticking to it can be one of best things you can do to improve your financial situation and grow your net worth over time.

Stop Using Debt to Pay Your Bills

Of course, it is possible to use credit cards responsibly. But, getting ahead of your debt when you continue to use credit cards can be challenging and even derail your progress. Some people will tell you to cut and throw away your credit cards.

This may not be an unrealistic choice for you. Here are some things you could try that will make using credit or credit cards more difficult:

• Store your cards someplace less accessible than your wallet.
• Ask your friend or loved one to keep your cards safe for you.
• Request that your credit card company freeze your account (you can always  “unfreeze” it at any time).
• Have the credit bureaus freeze your credit. By doing this, it will make it more difficult to open new credit accounts, and again you can unfreeze them at any time.

Remember, when you are using a portion of your monthly income to pay off debt and then you turn right around and use your credit cards to incur more debt, you are keeping yourself from achieving financial freedom.

Try to Decrease Your Expenses

Reducing your expenses can be difficult especially if you are already living below your means. The line between what you “want” and what you “need” can become easily blurred. If you are trying to pay off your debt, a sizable part of your income is more than likely reserved for debt payments each month.

If you can decrease your expenses that will free up more of your income to put towards your debt which will allow you to make a bigger dent in the debt.

Expenses such as subscriptions, eating out, entertainment and even groceries can be cut drastically. However, expenses such as your rent or mortgage, car payments and insurance and utilities are normally “fixed” and in many cases cannot be reduced with more effort, but here are some suggestions:

• Contact your insurance company and request a policy review to see if there are any opportunities to lower your rate.
• Change cell phone carriers or plans. With the cellular market being highly competitive, you may be able to switch plans or carriers to reduce your monthly expenses.
• Groceries and dining out are one of the largest expenses for a family. Track your food costs for a month and record every dollar you spend at the grocery store. Include take-out food, restaurants and your trips to the coffee shop. Once you see what you are spending your money on, you can take some steps to reduce your grocery expenses.

Be Accountable

The journey to being debt free can be a lengthy process. If you have someone to help hold you accountable and encourage you this could be crucial for your success. Remember, you don’t have to do this alone.

If you are married or in a committed relationship where finances are being combined, your partner and you should work together. Combining your efforts will make you more successful than going it alone.

If you don’t have someone to partner with, you may want to talk to a family member or close friend, someone who can help hold you accountable. The ideal partner is:

• Someone you feel comfortable sharing your situation with and trust.
• Someone who will have your best interest at heart.
• Someone who is in a better financial situation.
• Someone who will hold you accountable if you are making bad financial decisions.

Make sure you know why you are trying to get out of debt, then let your accountability partner know those reasons. Check in with your partner periodically and share your progress with them. And, if you are feeling discouraged, reach out to them for advice.

Take a Side Job

All of the tips above can help you become debt-free more quickly, but if you are increasing your income at the same time, you could put yourself on a faster track to financial freedom.

Consider a part-time job. Pick your hobby and turn it into a side hustle to add to your income stream. Figure out what you like to do and see if you can monetize it. Do you like to bake? Offer to bake for your friends. Love photography. Offer amateur sessions seasonally to friends through your social media pages. Like to write? See if any area businesses need help with blogs and freelance. There are lots of ways to earn extra cash on the side.

What’s Next?

If you are plagued with overwhelming debt and you’ve tried the tips above with no success, it may be time to speak with an experienced bankruptcy attorney about your options.

Contact Leslie Craft with Craft Law Offices for your free consultation. Leslie will provide you with personalized, responsive legal representation and help you get the financial relief you need to move forward. Don’t spend another day worrying about how you will pay your bills, contact Leslie today.

If you’ve heard it once, you’ve heard it 1,000 times; what’s your 5-year plan? If you’ve filed for Chapter 13 bankruptcy, your answer is probably to finish off your repayment plan. But what happens if you’re unable to complete your repayment plan?

When you file Chapter 13 bankruptcy, your goal should be to make your debt more manageable by paying off all or some of those debts, usually over a 3 to 5-year time period. Enter your repayment plan, which, ideally, will help you to accomplish this goal. When you reach the end of your repayment plan, then remaining debts get discharged. But be warned: this isn’t without consequences if you cannot complete your repayment plan.

Regardless of why you couldn’t complete your repayment plan, some things will go into effect.

1. The bankruptcy court will more than likely dismiss your bankruptcy. Creditors will know when you’ve stopped making payments because they will stop receiving payments, and sometimes they will request to have your bankruptcy claim dismissed.
2. Your automatic stay is void. Once your Chapter 13 bankruptcy petition was filed, an automatic stay went into place. This usually means that your creditors will stop bugging you for payments. If you don’t complete your Chapter 13 repayment plan and have your bankruptcy dismissed, your automatic stay goes void.
3. Creditors can (and will most likely) act. With your bankruptcy dismissed and your automatic stay over, nothing stops creditors from contacting you to pay your debts. The debts covered in your Chapter 13 bankruptcy didn’t disappear because your plan was incomplete.

But there are ways to avoid default and protect your bankruptcy from being dismissed.

1. Ask for a modification to your plan. Work with your attorney to modify your repayment plan but know that the judge is going to expect a very good reason on why you need a modification.
2. Change your Chapter 13 to a Chapter 7 bankruptcy. This can be complicated, and you should talk to your attorney about this as not everyone qualifies for Chapter 7 bankruptcy.
3. Ask for a hardship discharge. This might allow you to be discharged from your payment obligations without completing the full repayment plan. A hardship discharge is court-ordered, and you must prove your hardship by meeting certain criteria before a judge grants this type of request.

If you’re having trouble paying off your Chapter 13 repayment plan or have questions about bankruptcy in general, contact Attorney Leslie Craft. Leslie has the experience needed to handle bankruptcy cases and help clients become debt free. To schedule a free, personal consultation, call Craft Law Offices at (252) 752-0297 or visit craftlawoffice.com.

Bankruptcy can help people who are over their heads in debt discover peace of mind. Once you file bankruptcy, it is expected that you will better manage your finances after your bankruptcy is discharged. However, there are some who find themselves in dire financial situations once again due to divorce, health issues, and other unfortunate instances. If this applies to you, then you should know what your options are for another filing in the state of North Carolina.

Filing for bankruptcy falls under federal rules and laws, which do not limit the number of times you can file for bankruptcy. However, there are restrictions that are dependent on which bankruptcy Chapter you are filing under, and you may need to wait to file for bankruptcy and have your debts discharged again.

If you are considering another bankruptcy filing, you should contact Leslie Craft, an experienced bankruptcy attorney. She can explain how many times you can file bankruptcy in North Carolina, how often you can file, and what the impact of an additional bankruptcy can have on your credit score. She can also review your previous bankruptcy filing, help you choose the right Chapter for your current filing, prepare and file the necessary forms, and represent you in court should you decide to file again.

How Long do I Have to Wait Between Bankruptcy Filings?

The amount of time between bankruptcy filings is dependent on your current or previous bankruptcy filings. Generally the wait time is less to file for Chapter 13 after a previous bankruptcy discharge. Here are some guidelines:

• When filing for Chapter 13 after a previous Chapter 13 discharge, you are required to wait two years from the day you filed. However, Chapter 13 repayment plans are often completed in three to five years before debts are discharged. So, you can file Chapter 13 bankruptcy immediately after your first concludes.

• If you are filing for Chapter 13 bankruptcy after a Chapter 7 discharge, you must wait four years.

• The wait times are longer if you want to file for Chapter 7 bankruptcy after a previous Chapter 7 filing. That wait will be eight years.

• You can file for Chapter 7 six years after filing for Chapter 13 bankruptcy. However, if you repaid all unsecured debts in your Chapter 13 repayment plan, you could file for Chapter 7 immediately. The same applies when you pay 70% of the unsecured debts and make best efforts to stick with the plan.

There are other factors that may play into another filing, such as what was the outcome of your prior bankruptcy? Bankruptcy laws can be very confusing, and this is why you need an experienced attorney representing you. Leslie Craft understands that these guidelines can be very confusing. When Craft Law Office is representing you, we will make sure you understand the appropriate timeline. We will also make sure your case is complete, your debts are categorized properly, and all dischargeable debts are included in your filing. Call us today for a free consultation at 252-752-0297.

Are you buried under a sea of debt, and you are unsure how you’re going to dig yourself out? Are the creditors calling you and threatening foreclosure and wage garnishment? If the answer is “yes,” then filing Chapter 7 bankruptcy may be your solution to debt relief. Here is some information to help you understand the pros and cons of filing Chapter 7 bankruptcy. But feel free to contact Craft Law Offices with any other questions you may have.

What Exactly is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy can provide you with a fresh start. Chapter 7 can give you a clean slate so you can start building a new financial future. Debts such as child support, taxes and student loans are exempt from Chapter 7 bankruptcy, however it may be the perfect solution if you meet the debt and income criteria.

With Chapter 7 bankruptcy, medical bills, credit card debt and utility bills can be excused. As part of the liquidation process with Chapter 7 bankruptcy, some or all of your assets will be sold to pay your debts. The entire process only takes three to six months.

What Are The Pros?

We are glad you asked. First, once you’ve filed for bankruptcy your creditors will know and they will stop receiving payments. With a bankruptcy pending, they may be willing to negotiate a payment plan with you so that they will get paid.

Next, once you’ve filed, you get immediate protection from wage garnishments and collection processes. Your attorney, creditors, the court, and bankruptcy trustee will then analyze your assets and put together a plan to finalize the Chapter 7 bankruptcy proceedings.

When you file for bankruptcy any of your non-exempt current assets could be sold, however most assets are exempted. Any wages or assets you received after filing you would keep. These new assets will not be considered in the bankruptcy proceedings.

What Are The Cons of Chapter 7 Bankruptcy?

With everything, there is a downside to filing Chapter 7. One that should be considered before any final decisions are made.

First, Chapter 7 bankruptcy may stay on your credit report for 10 years after it is finalized. As time goes by it has less impact on your score and history, but it might be there for 10 years.

Next, debt incurred within 90 days of filing cannot be discharged, this includes back taxes, child support, credit card debt and student loans.

Your non-exempt assets are liquidated to pay back debts, Home and vehicles are almost always exempted assets.

Finally, you could be discharged from loans, but any co-signers could be responsible for payments. So, if you have a loan that someone co-signed for you, you will want to discuss the situation with them before you file Chapter 7 bankruptcy.

Why Should You Hire A Bankruptcy Attorney?

A bankruptcy attorney will act in your best interest to ensure you are making the best decisions for your situation. Although you don’t need an attorney to file bankruptcy, when you have an attorney you are getting an expert on your side. Your bankruptcy attorney is there to make sure you receive the very best deal possible while losing the fewest assets throughout the process.

Bankruptcy law is extremely complicated. Much like a chess match, your attorney is there to help you navigate the following:

• Determining if you are eligible for Chapter 7 bankruptcy.
• Helping you decide between Chapter 7 and Chapter 13 bankruptcy.
• Working with you to decide your debts and exemptions.
• Deciding what needs to be included on your bankruptcy forms.

If you feel like your debts are spiraling out of control or if you’ve suffered a major loss of income, filing for Chapter 7 bankruptcy could be the right decision. Filing for bankruptcy can be embarrassing and stressful, but it can also be a new start. One where you take back control of your finances and your future.

Leslie Craft at Craft Law Offices is experienced in all types of bankruptcy law. She will make the process as easy as possible, walking you through every step. Contact her today so she can review your case and put you on the road to a brighter financial future.

Bankruptcy can be an intimidating topic. There are different types of bankruptcy, each with different meanings, and it can be confusing. Craft Law Offices are here to help; here’s a breakdown of the different types of bankruptcy.

Bankruptcy can help you to:

• Eliminate your debts, such as medical bills, personal loans, credit card debts, and previous repossessions.
• Halt foreclosures and repossessions.
• End harassing phone calls, wage garnishments, and other collection antics.
• Resolve tax issues with the IRS.

Chapter 7 Bankruptcy:

Chapter 7 bankruptcy will let you cancel some or all of your debts – from medical bills to credit card debts. If you’re current in your payments, certain properties (like your house and car) are exempt, meaning you get to keep them. With Chapter 7, you’ll have to give up any of your non-exempt property to pay back your creditors. Craft Law Offices can help you determine what of your property is exempt and protected and which isn’t. This tends to be on a situational basis. It’s important to note that if you want to file for Chapter 7, you’ll have to pass a “means test” to continue with filing. This federally established formula takes into account your income, household size, taxes, living expenses, secured debt, etc. You DO NOT need to try to calculate your qualifications without the help of an experienced bankruptcy attorney, like Leslie Craft. These standards are complicated and change constantly, thus an experience attorney should be consulted.

Chapter 11 Bankruptcy:

Chapter 11 is used for both individuals and businesses that have accumulated a large sum of debt. A Chapter 11 plan will be submitted to the bankruptcy courts that details how your secured and unsecured claims will be handled, how much and which creditors will be paid, and how long the plan will last. Chapter 11 is a commitment and can take between 3 and 5 years to complete. In North Carolina, businesses that file for Chapter 11 bankruptcy can still operate their business or control their liquidation under the supervision of a North Carolina bankruptcy administrator. If the plan is completed successfully, the case may be turned into a Chapter 7 bankruptcy or dismissed.

Chapter 13 Bankruptcy:

Chapter 13 is another type of bankruptcy where similarly to Chapter 11, you can repay some or all of your debts – all of which is dependent on which properties you want to keep, how much you earn, and what non-exempt property you own. To qualify for Chapter 13, you have to have a steady income to make sure you can pay your debts and your ongoing living expenses.

What is the benefit of filing Chapter 13? If you’re falling behind on house or car payments but want to keep the assets, Chapter 13 will devise a plan to help you catch up. Plus, if you owe money to the IRS or NC Department of Revenue, you can pay those debts back without penalties or interest.

Leslie Craft is an experienced bankruptcy attorney, helping good clients find their way out of bad financial situations. If you’re considering bankruptcy and want to learn more about the bankruptcy process, schedule your free consultation with Craft Law Offices by calling 252-752-0297.