Filing Bankruptcy In North Carolina

The decision to file bankruptcy is a big one. A bankruptcy can affect your life for years to come. However, it is often the best solution for people who are unable to pay what they owe because of business losses, illness, divorce or other unexpected events.

At the Greenville, North Carolina, law firm of Cannon Law Offices, PLLC, our attorney assists clients with Chapter 13 and Chapter 7 bankruptcy. Since 1983, attorney Richard L. Cannon III has helped hundreds of clients make a fresh start. He knows the concerns of people who are deciding what to do about their financial situations.

Listed below are some common questions about bankruptcy.

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Simply stated, Chapter 7 is a liquidation bankruptcy. Your assets are sold to pay a percentage of your debts, and the remainder are discharged. Chapter 13 is a repayment plan that reduces and reorganizes your debt so you can repay your creditors over a longer period of time.

Can all my debts be discharged in a Chapter 7 bankruptcy?

No. You must continue to pay child support, taxes, student loans under most circumstances, court fines, fraud judgments and some other debts.

How long does a bankruptcy take?

It depends. A Chapter 7 bankruptcy in which there are no assets to be liquidated can be completed in as few as 100 days. A Chapter 13 bankruptcy takes three to five years.

Will I lose everything?

Not necessarily. North Carolina exempts some assets, allowing you to keep your home if the equity is below a certain amount, your car or truck with equity up to certain value, household items up to $5,000-plus more for each dependent, tools of your trade, life insurance that benefits your spouse or child, personal injury settlements or verdicts, most retirement accounts and other exemptions.

Creditors are calling my house and workplace at all hours of the day. Can I stop this?

Yes. By filing bankruptcy, you are protected from creditors by an automatic stay that prohibits them from contacting you. Tell your lawyer about creditors who violate an automatic stay.

Learn More In A Free Consultation

Our law firm will provide more in-depth answers to all your questions about bankruptcy. Take control of your life and finances. For a free initial consultation with our experienced bankruptcy lawyer, contact us. Call 252-558-1834 to discuss your situation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.