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Some people stay in debt because they are either too afraid to make a move or they are not aware of the legal options they can take. For many people, filing for bankruptcy in Raleigh is the best option to deal with the trouble of paying off personal loans or saving a house that is about to be foreclosed.
When it comes to filing for bankruptcy, however, you need to make further assessments on your situation. First, determine your current financial well-being. Here are some questions you need to ask yourself:
- Are you only able to pay the minimum on your credit cards?
- Are you uncertain of the exact amount of your debt?
- Are you only using credit cards for all of your payments?
- Are you being chased by your creditors?
Make an Inventory
If you answered yes to all of these questions, you might be bankrupt. That is the case if you owe more than what you can afford to pay.
As such, it is advised that you do an inventory of all liquid assets. These would include the following:
- Real estates
- Retirement funds
- College accounts
- Vehicles owned
- Stocks and bonds
Once you have calculated the liquid assets, see if they are lower than your total bills. If they are, you are eligible to file for bankruptcy.
Types of Bankruptcy
After you have decided to file for bankruptcy, it is imperative to distinguish which among the two types of bankruptcy you will file for. Weik Law Office, Raleigh bankruptcy attorneys, explains the two types of relief below:
- Chapter 7 Bankruptcy
Chapter 7 bankruptcy, also known as “straight bankruptcy,” serves as a protection from creditors. It gives you a chance to liquidate your assets to pay off a certain debt in accordance with the provisions of the Bankruptcy Code.
The bankruptcy will reflect on your credit report for ten years. Instead of a stain on your record, Chapter 7 is your chance to start anew.
- Chapter 13 Bankruptcy
Chapter 13 bankruptcy, also referred to as “Wage Earner Plan,” provides individuals a chance to reorganize their debts. This is the type of bankruptcy you have to file if you do not want to sell all your assets. It is designed for individuals who earn a wage, receive other monthly income, or do not earn a high income to pay all of their debt.
With Chapter 13, you will be given a payment plan to pay off debts up to five years. If you continue to acquire income, Chapter 13 gives you a grace period. Any debt that will remain at the end of the grace period will be discharged.
Is There A Minimum Debt Amount?
For any bankruptcy, there is no minimum debt amount. However, you could not have more than $1,190,000 in secured debt (or $400,000 in unsecured debt) if you are filing for Chapter 13 bankruptcy.*
Get Professional Help
To better understand how bankruptcy works to your advantage, it is significant to discuss with a professional. The Weik Law Office is the best venue to seek help in North Carolina, having experience for over 20 years.
Weik Law Office Bankruptcy Attorneys of dedicated attorneys can give you unsolicited advice for your financial situation. They will help you explore your options when it comes to bankruptcy in Raleigh, NC. Call Weik Law Office today at 919-845-7877 for a free consultation, and set up a time to speak with one of our professionals.
*amounts adjusted periodically due to inflation