Chapter 7 Bankruptcy Attorneys Serving Union County, North Carolina

Facing overwhelming debt is an incredibly challenging experience. It can feel like a weight that's constantly pressing down on you. We understand this struggle and want you to know that you're not alone. At The Crow Law Firm, we guide individuals through the legal process of filing for Chapter 7 bankruptcy. Located in Union County, North Carolina, our experienced team of attorneys is dedicated to helping clients throughout Mecklenburg, Cabarrus, Stanley, Anson, Chesterfield, Lancaster, and York counties find the financial relief they need. 

Chapter 7 bankruptcy, often termed as "liquidation" bankruptcy, is a legal tool that can provide you with a fresh start by eliminating most, if not all, of your debt. It's a popular choice for people dealing with significant credit card debt, medical bills, and similar debts. But navigating the complexities of Chapter 7 bankruptcy laws requires a thorough understanding. That's where our firm steps in. 

Chapter 7 Bankruptcy 

Filing for Chapter 7 bankruptcy involves a legal process governed by federal law. It allows you to discharge most of your debt, essentially wiping the slate clean. 

However, not all debts can be discharged under Chapter 7. For instance, obligations like child support, alimony, most tax debts, and student loans (unless specific criteria are met) cannot be eliminated through this process. 

State-specific Laws 

North Carolina follows the guidelines set forth by federal bankruptcy laws. These laws determine the eligibility criteria, exemptions, and procedures for filing Chapter 7 bankruptcy. Our team of attorneys is well-versed in these laws and can provide you with the necessary guidance and knowledge. 

What Chapter 7 Does Do 

Chapter 7 bankruptcy, contrary to some misconceptions, is not about leaving you with nothing. It's about providing you with a way out when your debts have become too much to handle. Here's what Chapter 7 does: 

• Eliminates Unsecured Debts: The primary benefit of Chapter 7 bankruptcy is that it can wipe out many unsecured debts, such as credit card debt and medical bills. This means you're no longer legally obligated to pay these debts. 

• Stops Creditor Harassment: Once you file for Chapter 7 bankruptcy, an automatic stay goes into effect, which prohibits most creditors from continuing collection activities against you. This includes phone calls, letters, lawsuits, wage garnishments, and bank levies. 

• Allows You to Keep Exempt Property: Contrary to popular belief, you won't lose everything you own when you file for Chapter 7 bankruptcy. North Carolina law allows you to keep certain "exempt" property, often including items like your home, car, clothing, and household goods, up to a certain value. 

• Offers a Fresh Start: The goal of Chapter 7 bankruptcy is to give you a fresh start. Once the bankruptcy process is complete, you're free from the burden of unmanageable unsecured debt. 

Remember, every case is unique, and the benefits you may receive depend on your specific circumstances.  

What Chapter 7 Doesn’t Do 

While Chapter 7 bankruptcy can provide significant relief from overwhelming debt, there are certain things it doesn't do. Understanding these limitations can help you make an informed decision about whether this is the right path for you. 

• Doesn't Discharge All Debts: Certain types of debts are not dischargeable under Chapter 7 bankruptcy. These include most student loans, child support, alimony, certain tax debts, and debts resulting from fraudulent activities. 

• Doesn't Automatically Save Your Home or Car: While North Carolina's exemption laws allow you to protect some equity in your home and car, if you're behind on your mortgage or car loan payments, Chapter 7 won't automatically save these assets from foreclosure or repossession. You'll need to continue making these payments if you wish to keep them. 

• Doesn't Resolve Co-Signed Debts: If someone co-signed a loan for you, Chapter 7 bankruptcy will relieve you of the obligation to pay the debt, but your co-signer will still be on the hook. Your bankruptcy does not eliminate their responsibility to repay the debt. 

• Doesn't Protect Property Acquired After Filing: Any property or assets you acquire after filing for Chapter 7 bankruptcy, such as an inheritance or lottery winnings, may not be protected and could be taken to pay your creditors. 

• Doesn't Repair Credit Immediately: While Chapter 7 bankruptcy can ultimately lead to better credit by wiping out many of your debts, it doesn't instantly repair your credit. A Chapter 7 bankruptcy will remain on your credit report for ten years, which could initially lower your credit score and affect your ability to get credit in the short term. 

At The Crow Law Firm, we understand that each situation is unique and we're here to guide you through the complexities of bankruptcy.  

Qualifying for Chapter 7 

To qualify for Chapter 7 bankruptcy, individuals must meet certain eligibility criteria. These include: 

• Passing the means test, which compares your income to the median income in North Carolina. 

• Not having filed for bankruptcy within a certain period before the current filing. 

• Completing a credit counseling course from an approved agency. 

When Is Chapter 7 a Good Debt Relief Option? 

Chapter 7 bankruptcy can be a good debt relief option in various situations, including: 

• Overwhelming unsecured debt, such as credit card debt and medical bills 

• Inability to repay debts within a reasonable timeframe 

• Facing wage garnishment or other collection actions 

• Experiencing financial hardship due to job loss, divorce, or medical expenses