If your money problems only seem to get worse with every passing month, filing bankruptcy could be the answer. While inventorying all your debts and assets may seem overwhelming, declaring bankruptcy is actually a fairly straightforward process—especially if you turn to a seasoned attorney for help. In North Carolina, for example, here are the basic steps for discharging debt.

How to File Bankruptcy in the Tar Heel State

1. Complete Credit Counseling

All debtors who wish to declare bankruptcy must complete credit counseling no more than six months before filing. Your attorney can help you find an approved course that will count toward this requirement.

2. Fill Out the Petition

After confirming you are eligible for chapter 7 or chapter 13 bankruptcy—a lawyer can help you determine which applies to the situation—you must complete the bankruptcy petition. In addition to listing all debts and living expenses, you will have to disclose all assets and sources of income.

3. Propose a Repayment Plan or Liquidate Assets

Those who are declaring chapter 7 will have to liquidate nonexempt assets to pay back creditors. If you’re filing chapter 13, on the other hand, you will have to devise a repayment plan that lasts for three to five years.

4. Go to a Meeting of Creditors

About one month after filing, the petitioner must attend a meeting of creditors called by the bankruptcy trustee. Also called the 341 meeting after the corresponding statute in the bankruptcy code, the purpose of this proceeding is to resolve any disputes before the debt is discharged or repaid.

5. Meet Any Additional Requirements

After filing, all debtors must complete an education course on financial management. And those who declared chapter 13 will have to continue making monthly payments until the arrangement has ended.

If you’re thinking about filing bankruptcy in North Carolina, get in touch with The Law Office of James B. Mallory III. Practicing out of Statesville, James has nearly three decades of experience in debt counseling. When you turn to this knowledgeable attorney, you can count on receiving compassionate and strategic guidance with zero judgment. James cares about getting his clients out of debt and is not concerned with how they got into it. To learn more about filing bankruptcy with his help, visit his website or call (704) 872-1911.