Statesville, North Carolina
102 W Broad St.
Statesville, NC 28677
(704) 872-1911

3 Reasons to Consider Filing Bankruptcy December 28, 2017

Statesville, Iredell
3 Reasons to Consider Filing Bankruptcy , Statesville, North Carolina

If you’re dodging debt collectors and fearing foreclosure, you may need to consider filing bankruptcy. Those in the Iredell County area turn to the Law Office of James B. Mallory III in Statesville, NC, for legal counsel on matters of debt relief. Here, an experienced bankruptcy attorney from the office explains how to determine when you should take action. 

Scenarios That Warrant Filing Bankruptcy

1. Debt Collectors Are Suing You

filing bankruptcyPerhaps you’re past the stage of debt collection calls and letters. Now, debt collectors are filing lawsuits, and you don’t have anything to offer to negotiate a settlement. Luckily, filing bankruptcy will stop the lawsuits. If you qualify for a Chapter 7 bankruptcy, it will wipe out most unsecured debts. With a Chapter 13 bankruptcy, you can make payments to your creditors under a court-approved plan.

2. You Are Under Wage Garnishments

Wage garnishments for back taxes or judgments against you can take a large portion out of your paycheck. Chapter 13 bankruptcy stops garnishments and allows you to put a smaller percentage of your income toward the debts. The payment plan strategy also eliminates the crutch of using credit cards to pay everyday bills.

3. You Are Facing Home Foreclosure

Serious illness or job loss can devastate a homeowner’s budget. If a lender is threatening to foreclose on your home, Chapter 13 bankruptcy gives you time to catch up on payments and keep your property. Depending on the debtor’s income, bankruptcy courts approve Chapter 13 plans to run for three to five years. Debtors who complete their plans receive discharges of remaining debts or approval to continue making payments after the bankruptcy. Homeowners with second mortgages and homes worth less than what they owe may be able to wipe out their debt.

With almost 30 years of experience representing clients filing bankruptcy, the Law Office of James B. Mallory III in Statesville, NC, offers peace of mind to families in financial trouble. Find out whether bankruptcy is the right option for you by scheduling a consultation with Attorney Mallory today. Call (704) 872-1911 to set up an appointment, and visit the firm’s website for more information about their services.

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