Because of the Internet, we have access to more information than any other time in history. But greater connectivity can lead to information overload. When you want answers about how to handle your debts, consider the following fast facts about Chapter 13 bankruptcy.
#1. Chapter 13 Bankruptcy Allows for Repayment of Debt You Want to Keep
There are several types of bankruptcy. Each provides debtors a different way to handle their financial obligations. For example, Chapter 13 bankruptcy does not completely eliminate your debts. Instead, you set up a repayment plan that provides creditors with at least some of the money owed to them.
#2. One Type of Bankruptcy Allows You to Keep Most of Your Property
Chapter 7 bankruptcy may involve selling at least some of your assets. However, a Chapter 13 does not. In fact, you can retain most, if not all, of your assets. That’s because you will set up a repayment plan to pay at least some of your creditors.
#3. Repossession and Foreclosure Stop When You File a Chapter 13
An automatic stay goes into effect as soon as you file your bankruptcy petition. Among other things, this means that repossession and foreclosure actions stop, at least temporarily. We can discuss how to handle your debt during our personal consultation.
#4. Chapter 13 Bankruptcy Stops Most Collection Actions
Here again, the automatic stay proves to be very helpful. Most creditors must stop contacting you about the money you owe them. With the help of your bankruptcy attorney, you can deal with any creditors that ask the court to lift the stay so they can continue to pursue you.
#5. Courts Usually Require Credit Counseling.
In North Carolina, you will need to attend approved pre-bankruptcy credit counseling and pre-discharge debt education courses. These are online or over the telephone and are very painless.
#6. Spouses May File Chapter 13 Bankruptcy Petitions Jointly or Individually.
When it comes to bankruptcy, couples don’t have to do everything together. Sometimes the best course of action is for a spouse to file individually. We can discuss the circumstances of your individual situation during our consultation to see if this is the right path for you.
#7. Chapter 13 May Protect Co-Signers on Consumer Debt.
Being the co-debtor on a debt can be dangerous. However, Chapter 13 bankruptcy law contains a special automatic stay that typically protects co-signers. This stay applies to ‘consumer debt,’ which refers to debts you incur for a “personal, family, or household purpose.”
Call to Find Out if Chapter 13 Bankruptcy Is Right for You
Attorney Leslie Craft has the experience you need to deal with bankruptcy and traffic violations. Ms. Craft’s goal is always to help her clients get past their legal problems and get on with their lives.
To schedule a free personal consultation, call Craft Law Offices at (252) 752-0297 or fill out our simple contact form. Bankruptcy Doesn’t Have to be a Painful Process! My offices are located in Greenville, Morehead City, and Rocky Mount for your convenience. I also represent clients in surrounding Eastern North Carolina communities, including Warrenton, Elizabeth City, Roanoke Rapids, Goldsboro, and Jacksonville.