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Individuals who file for Chapter 7 bankruptcy in Raleigh generally have very few or no assets. If this applies to you, you may be wondering how this will affect your filing.
One of the first things we do here at Weik Law Office is to guide our clients through the means test. This test will determine if you’re eligible for a Chapter 7 bankruptcy. That is, unless you qualify for an exemption from the test.
Most filers who fall under this exemption do not have assets or funds they can hand over to the bankruptcy trustee handling their case. Consequently, most Chapter 7 bankruptcy cases are designated as “no-asset” cases.
What’s a No-Asset Case?
Basically, a no-asset case simply means you have no property the trustee can sell to help pay your unsecured creditors. In addition, you can also keep all of your property because under the no-asset case, they tend to fall within federal or North Carolina exemptions.
Furthermore, Chapter 7 bankruptcy in Raleigh discharges most debts, so your creditors won’t have options to collect in the future. In fact, the courts will give them notice to inform them that they don’t need to file a proof of claim because they will not collect anything on your debts.
Exempt Versus Non-Exempt Property
Chapter 7 is a liquidation bankruptcy. Technically, debtors have to surrender their assets to the bankruptcy trustee. In turn, the trustee can sell them and use the proceeds to pay creditors. More often than not, however, this only happens when you have non-exempt property.
Bankruptcy law is designed to help you build a future after filing for bankruptcy. This includes recognizing that you need to keep some property for a fresh start.
Every state, including North Carolina, has a list of exemptions that you can use to protect essential assets. Some of these exemptions are:
- Homestead and burial plot exemption
- Motor vehicle exemption
- Personal Property
- Wages
- Retirement and pensions
- Public benefits
- Insurance
- Wild card
Weik Law Office bankruptcy lawyers in Raleigh, NC are knowledgeable about all exemptions that apply to our state. This includes exemption amounts and the specific type of properties you can retain under each exemption.
Learn More About What Happens During Bankruptcy
Your exemptions are closely related to whether you file for Chapter 13 or Chapter 7. That’s why it’s critical to enlist the services of an experienced bankruptcy attorney in Raleigh NC.
At Weik Law Office, we will answer any and all questions you may have about bankruptcy. we’ll help you understand not just the bankruptcy process, but what life may look like after filing.
Together, we will protect as much of your assets as possible so that you have everything you need to rebuild your life. Call Weik Law Office today at 919-845-7877 for a free consultation, and set up a time to speak with one of our friendly professionals.