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Brent Adams & Associates

Q
Will filing for bankruptcy in North Carolina remove all my debt?

A

Chapter 7 bankruptcy filings often require liquidations. This generally involves the sale of many of the applicant's possessions in order to pay for some of their debt. Filing for Chapter 13 bankruptcy does not require the applicant to sell their possessions, but they have to pay back a portion of the debts within three to five years.

Bankruptcy will help eliminate a portion of debt, like credit card bills or hospital bills in some cases, but alimony and taxes will not be discharged.

Student loans are another type of debt that cannot be taken away by filing for bankruptcy--in most cases. However, under special circumstances, student loans have been discharged. This notable 2013 student loan bankruptcy discharge is one example. In order to do this the applicant must prove extenuating circumstances, which is not a simple matter to prove. 

If you're concerned about debt owed on a home, learn about how bankruptcy affects foreclosures.