Bankruptcy Frequently Asked Questions

Richard L. Brown, Jr., Union County Bankruptcy lawyer, can answer all of your bankruptcy questions. However, here are a few common questions I have provided answers to for your assistance. Will filing for bankruptcy destroy my credit? Although a bankruptcy will appear on your credit report, it does not mean you will never be able to obtain credit again. In fact, you may be able to start building credit again soon after your case has been discharged. An experienced Union County bankruptcy attorney like Richard L. Brown,. Jr. can inform you of ways in which you can rebuild your credit after filing for bankruptcy.

What happens to your life after filing bankruptcy?

Your life improves. It does not get worse because you have filed bankruptcy. A bankruptcy filing provides relief to debtors. Creditor harassment stops and debt is discharged.

Once discharged, your debts are forever gone. You can never be forced or even asked to pay after your discharge is granted. Notices in your mailbox end. The phone stops ringing. You begin again with a fresh start, free from insurmountable debt. Filing bankruptcy puts you back in control. You can make decisions based on what your current needs are and not based on what consequences you will face for having to choose who to pay this month.

If I file for bankruptcy can I keep my home?

That depends on a variety of factors, but most likely yes. Whether or not you keep your home can depend on whether you file for Chapter 7 or Chapter 13, or if you and your bankruptcy attorney are able to find that your home can be considered exempt from liquidation. Also, after restructuring your debt you may find that keeping your home isn’t the best financial option for you and it might be beneficial to consider a short sale or a deed in lieu.

My home is going into foreclosure. Can I stop It?

Most likely yes. Filing a Chapter 13 gives you the opportunity to make monthly payments on your past due mortgage obligations. Often times mortgage companies refuse to take partial payments after you have become more than 90 days late, and require you to pay all past due amounts and other fees up front. Filing a Chapter 13, will force the mortgage company to take your monthly payments on your past due amount after the Bankruptcy Court confirms your repayment plan. Contact Monroe Bankruptcy Lawyer today to set up a repayment plan for your mortgage.

Can you eliminate your 2nd Mortgage?

The North Carolina real estate market has taken a plunge, and many who purchased property while it was peaking now have a home that is financed for far more than its current market value. When filing for bankruptcy, there are certain actions that can be taken by your bankruptcy lawyer to "strip" the second mortgage from your obligations. As the mortgage is no longer actually secured due to the value of the home, it could be determined by the court that this lien can be "stripped". Many individuals find that once their 2nd mortgage is eliminated in a Chapter 13 bankruptcy, their house payment is affordable and they can keep their property.

What kind of debt will be discharged if I file for bankruptcy?

It depends if you file under Chapter 7 or Chapter 13, but generally bankruptcy discharges unsecured debts such as credit card debt, medical bills, loans, and certain lawsuit judgments. You cannot discharge debt such as alimony, child support, student loans, and criminal fines. Also, any debts incurred as a result of drunk driving, debts incurred within 60 days of filing the petition, or debts not listed in the bankruptcy petition cannot be discharged. This is why it’s important to have professional help from a Monroe bankruptcy attorney when filing for bankruptcy. If you forget to report a debt when you file your bankruptcy petition you may still be responsible for paying that debt.

Contact our firm today for your free Union County bankruptcy evaluation.