Janvier Law Firm, PLLC

Raleigh Bankruptcy Law Blog

Am I eligible to file for Chapter 7 bankruptcy?

Deciding to file for bankruptcy is a big decision, and it can cause anxiety, stress and fear. But in the long run, bankruptcy is an opportunity for you to tackle your debts and attain a fresh financial start.

Chapter 7 bankruptcy is just one available option for those struggling with debt. Also known as liquidation bankruptcy, Chapter 7 sells your non-exempt assets to repay your outstanding debts, such as medical bills, credit card debt and personal loans. While Chapter 7 is the most common type of bankruptcy, there are still some requirements that you must meet if you are considering it as an option.

Raleigh movie theater files for bankruptcy protection

Chapter 7 bankruptcy is available to businesses and consumers alike when they need debt relief. A movie theater in Raleigh recently filed for bankruptcy protection. The movie theater, opened in 1993, was one of Raleigh's first dine-in cinemas which allowed patrons to purchase beer, wine and food to enjoy during their movie. Up until recently when the theater began showing new releases, it only showed second-run movies.

In recent years, the theater has faced growing competition in the area. The theater owes $777,209 to creditors according to its bankruptcy filing. A total of $63,353 is owed on the theater's lease which extends through 2023. The theater filed for Chapter 7 bankruptcy protection which is a business liquidation bankruptcy option. The liquidation process through business bankruptcy protection allows the struggling business to liquidate assets to repay creditors and involves the business closing its doors.

Can I get hep repaying debts over time?

Chapter 13 bankruptcy, sometimes referred to as wage earner's bankruptcy, is a personal bankruptcy option that can help struggling consumers repay their debts over time. Because of the potential benefits of Chapter 13 bankruptcy, struggling consumers considering filing for bankruptcy should be familiar with it, how to qualify and how it works.

The basics of Chapter 13 bankruptcy are that it provides an option for filing parties with a reliable source of income to repay their debts according to in installment plan worked out with the bankruptcy court. The bankruptcy court will help the filing party develop a reorganization plan that can help them repay their debts, while hanging on to their assets, over a longer period of time which is usually 3 to 5 years. If the filing party's income is less than the median income in their state, the repayment plan will usually be 3 years.

Personal bankruptcy protections can help with the strain of debt

Though the bankruptcy process can be emotionally challenging, struggling with overwhelming debt with no resources to help can cause a great amount of emotional strain as well. Fortunately, personal bankruptcy protections are available to help consumers who are struggling with debt and seeking debt relief.

While going through the bankruptcy process, it is helpful for the filing party to deal with the practical realities of the process and allow themselves to experiences the feelings that come up during the process which can also include relief because they are no longer facing the crushing stress of overwhelming debt. Any type of personal bankruptcy protection provides and automatic stay preventing creditor collection actions from proceeding during the bankruptcy process which can give the filing party some immediate breathing room.

Bankruptcy help with foreclosures for struggling homeowners

Struggling consumers may be able to enjoy relief from foreclosure through personal bankruptcy protection options they should be familiar with. Chapter 13 bankruptcy may help a struggling homeowner get current on their mortgage payment and reorganize their debt so they can repay it over a more manageable period of time.

Chapter 13 bankruptcy is a reorganization bankruptcy option that works out a repayment plan with the struggling consumer or homeowner so that they can repay their debts over a 3 to 5 year-period that is more manageable for them. The length of time for the repayment plan is typically determined by the filing party's income and Chapter 13 bankruptcy is also best for struggling consumers and homeowners who have a reliable source of income they can repay their debts with. The bankruptcy court will help them work out a repayment plan that can also help a struggling homeowner fighting foreclosure.

What is bankruptcy?

This blog talks a lot about bankruptcy but it might be helpful to ask what bankruptcy is. It is certainly important for those struggling with debt to understand what bankruptcy is and how it can help them. For struggling consumers considering bankruptcy, it is also imperative to ensure all their questions about bankruptcy options are answered.

The purpose of bankruptcy is to help struggling consumers with a fresh financial start and for creditor repayment. There are two types of personal bankruptcy including Chapter 7 personal bankruptcy and Chapter 13 personal bankruptcy. Chapter 7 bankruptcy is an option for struggling consumers seeking to liquidate their assets and Chapter 13 bankruptcy is an option for struggling consumers seeking to reorganize their debts.

Credit card debt continues to rise in the U.S.

The average American has four credit cards with an unpaid balance of more than $6,000, according to the most recent data from the Consumer Financial Protection Bureau (CFPB). Total credit card debt in the United States reached $868 billion by the halfway point of 2019.

While credit card debt approaches $1 trillion, banks and other creditors continue to raise spending limits on cards by 11.5% to an average amount of $22,589. The average credit card debt in North Carolina reached $5,698 in 2019, a 1.3% increase from 2018.

How Chapter 7 bankruptcy helps struggling consumers

Chapter 7 bankruptcy protection, and how to qualify for it, is important for struggling consumers to understand and to be familiar with. Unexpected circumstances can lead to mounting debt in some instances which is why consumer bankruptcy options are available to protect struggling consumers.

Personal bankruptcy protection serves as a valuable resource to individuals struggling with debt which is why they should understand how the process can help them. They should also understand that there are different personal bankruptcy options available for different situations and circumstances. One of the most important benefits of filing for bankruptcy protection is not only debt relief but relief from creditors. Once the filing party has filed for Chapter 7 bankruptcy protection, an automatic stay prevents creditor collection actions while the bankruptcy process progresses.

The role of the bankruptcy trustee during bankruptcy

Bankruptcy is an important legal tool that provides protections for struggling consumers.

The bankruptcy court is closely involved in guiding the bankruptcy process which is why it is helpful for the filing party to be familiar with what the bankruptcy trustee does and what they can expect from the bankruptcy process.

Recent personal and commercial bankruptcy filings increase

Personal bankruptcy protections are a valuable resource that can help struggling consumers looking to offload debt and enjoy a fresh financial start. The American Bankruptcy Institute recently reported that bankruptcies increased during the month of August, though year-over-year bankruptcy numbers are down. Both consumer and commercial bankruptcies were up during the month of August. Consumer bankruptcies increase by 4% in August. Commercial bankruptcies increased by 3% in August.

Bankruptcy protections can help struggling consumers and businesses enjoy debt relief. Recent changes in bankruptcy laws have increased access to bankruptcy protection for struggling businesses, family farmers and veterans. Dealing with debt everyday can be overwhelming which is why there are both liquidation and reorganization bankruptcy options for both struggling consumers and struggling businesses. Chapter 7 bankruptcy is a liquidation bankruptcy option that allows the filing party to repay creditors by liquidating non-exempt assets.

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