If you have accumulated more debt than you can reasonably manage, declaring bankruptcy could provide a fresh financial start. Bankruptcy law is complicated, though, and it’s essential to familiarize yourself with the proceedings prior to filing. Here are the answers to just a few of the most frequently asked questions on the subject.

FAQ About Bankruptcy Law

1. Will Bankruptcy Discharge All My Debt?

Unfortunately, there are certain kinds of debt that even bankruptcy cannot discharge. If much of your debt is comprised of child support, alimony, student loans, or criminal restitution, for example, declaring bankruptcy will not help. If, on the other hand, you have a considerable amount of medical debt or consumer debt, like maxed out credit cards, it is worth speaking to a bankruptcy law attorney about your options.  

2. What Is Chapter 7?

Chapter 7 was designed for debtors who have little to no disposable income and is often called “liquidation bankruptcy.” Petitioners who qualify and do not have any money to pay back their lenders must liquidate non-exempt assets instead. Once they have paid back a portion of what they owe, any remaining applicable debts will be discharged in full. 

3. What Is Chapter 13?

Chapter 13 bankruptcy is similar to debt consolidation and is for those who have some disposable income but cannot manage multiple monthly payments. In this approach, the bankruptcy court essentially reorganizes the debt so that petitioners must make single monthly payments for three to five years. Any debt remaining after the payment plan has ended is then discharged. The greatest advantage of filing chapter 13 over chapter 7 is keeping all your property.

4. How Long Do the Proceedings Take?

Every case is different, but with the help of an experienced lawyer, most chapter 7 filings are resolved within three or four months. It usually only takes a few months to complete a chapter 13 filing, as well. However, the debt is not discharged until the payment plan has ended, which means the case technically takes three to five years to resolve.

If you want to file for bankruptcy in North Carolina, turn to Anderson Law Firm in High Point. This firm focuses solely on bankruptcy law, which means they have extensive experience resolving the kinds of issues that are most likely to arise during the proceedings. Whether you want to file for chapter 7 or explore debt consolidation, you can rely on their seasoned attorneys for comprehensive counsel every step of the way. Visit their website to learn more or call (336) 431-7336 to schedule an initial consultation today.

The information contained in this site is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved. We are a Debt Relief Agency. We help people file for Bankruptcy Relief under the Bankruptcy Code.