When an individual, couple, or family starts considering bankruptcy, they quickly learn there is not just one type of bankruptcy. Bankruptcy is an option, but the many options within bankruptcy can be as overwhelming as the financial stress individuals are already under.
Whether loan debt has piled up, or a family is struggling with the medical expenses in the aftermath of a car accident, bankruptcy may be an attractive option to satisfy outstanding bills. What kind of bankruptcy is right for you? If you have not already met with a North Carolina bankruptcy lawyer, make an appointment for a legal consultation. In the interim, educate yourself on the different types of bankruptcy:
Chapter 7 Bankruptcy. Special income limits affect an individual's eligibility for this type of bankruptcy. This option allows all non-exempt assets to be sold and the proceeds used as payment to creditors. Individuals must wait eight years after filing in order to be eligible for filing bankruptcy again.
Chapter 12 Bankruptcy. Designed for "family farmers" and "family fisherman," this type helps individuals in these specialized industries pay debt over an agreed upon amount of time.
Chapter 13 Bankruptcy. Families facing foreclosure in North Carolina are usually curious about this bankruptcy option. In lieu of selling assets, individuals may use future income to pay off debts over a specified period of time.
Should I File for Bankruptcy in North Carolina?
Bankruptcy, although an intimidating process for many, helps consolidate debts. It may help minimize balances, but there are some debts that are not satisifed by bankruptcy, like child support to name only one example, which is why individuals should consult with a lawyer experienced with bankruptcy in North Carolina.