Janvier Law Firm, PLLC

Raleigh Bankruptcy Law Blog

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.

How to manage credit card debt

What could we do as a society if someone spread $1 trillion among the citizens of the United States? People might pay off their homes, put their kids through college or invest for the future. After all, even a portion of that amount is life-changing money.

Why $1 trillion? That’s the collective amount Americans owe in credit card debt.

Chapter 13 bankruptcy help with a fresh financial start

Chapter 13 personal bankruptcy protection is important for struggling consumers to fully understand because it serves as such a valuable resource to consumers seeking debt relief from their overwhelming debt. Chapter 13 bankruptcy is a reorganization bankruptcy option for struggling consumers and homeowners with a reliable source of income to consider.

Chapter 13 bankruptcy works by developing a repayment plan that will allow the filing party to repay their debt in installments over a 3 to 5-year period. It is important to note that the what is repaid is part of the bankruptcy process and may vary based on the filing party's income, assets and circumstances. Once the repayment plan is complete, the filing party will receive a debt discharge and any debts not addressed in the bankruptcy will be discharged.

North Carolina barbecue finds buyer in bankruptcy

Business bankruptcy resources are useful for struggling businesses to be familiar with. A famed North Carolina barbecue restaurant looks to be sold as part of a bankruptcy process after the restaurant filed for bankruptcy protection earlier this year. The barbecue restaurant has been in business for 6 decades prior to its recent financial trouble. A recent purchase agreement for the barbecue was filed in the bankruptcy court. The proposed sale, if approved by the bankruptcy court, will be for $350,000.

The purchaser is a group of community members who came together to form a company to purchase the restaurant so it could continue to serve the community. The bankrupt barbecue claimed $350,000 in debts and $100,000 in assets in its earlier bankruptcy filing. Its debts include liens on equipment loans and unpaid state and federal taxes. A representative for the purchaser noted that the hope is for the barbecue business to return to its former glory.

How jewelry and other property is handled during bankruptcy

Knowing what to expect from the bankruptcy process can help calm some of the nerves individuals filing for bankruptcy may have. Personal bankruptcy protection options are an important resource for struggling consumers which is why they should be familiar with how bankruptcy protections work and can help them.

In a recent episode of a popular television show, a wealthy couple must file for bankruptcy and learns they may lose their home, car and the wife's wedding ring. When a filing party is going through the Chapter 7 bankruptcy process, it is helpful for them to be familiar with how asset liquidation is handled. Chapter 7 bankruptcy is a personal bankruptcy protection option that allows assets to be liquidated to repay creditors. Some assets are protected, or exempted, from the process such as some personal property or jewelry.

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