Many people who find themselves in a position to file for bankruptcy have arrived there in one of four ways: 1) a divorce; 2) unexpected medical expenses 3) credit card debt that spiraled out of control 4) temporary unemployment. No matter what preconditions led you to file for bankruptcy, know that you're not alone and that debt relief agencies like ours exist for the sole purpose of helping you through to the other side.
For a free consultation about filing for bankruptcy with The Cummings Law Firm, P.A., you can contact us online or by calling one of our lawyers at (704) 376-2853.
In Chapter 7 bankruptcy, you file a petition listing your creditors and all of your unsecured debt will be discharged — that is, wiped away. In return, a bankruptcy trustee will sell off any nonexempt assets that you own and put the proceeds toward paying off your debt. Most people do not have nonexempt assets. You can, in most cases, retain your car and your house by continuing to maintain payments and reaffirm your debt.
In Chapter 13 bankruptcy, you are usually proposing to retain all your belongings. Instead, all of your debts will be combined into one affordable monthly payment that you will have to make for the next three to five years. At the end of that time period, any remaining debt you have may be discharged completely.
Federal law requires that people go through a two-part credit counseling process before filing for bankruptcy. Anyone who tries to skip these steps will have the case thrown out of court. The courts in Charlotte have approved several agencies to deliver the required credit counseling services. We can assist you in getting in touch with an approved agency.