Chapter 13 Bankruptcy Attorneys in Union County, North Carolina

Individuals in North Carolina can face the stress of mounting debt for any number of reasons—unexpected medical bills, sudden job loss, divorce, or other unforeseen financial crises. These challenges can creep up on anyone, and when they do, it's understandable to feel lost or trapped. But remember: you have options. Bankruptcy may be one of these options. 

Bankruptcy is often seen as a daunting, complex process—but it doesn’t have to be this way. Chapter 13 bankruptcy is not a death sentence for your financial health, but rather a path to regain control of your financial situation and work towards a debt-free future. The road may seem rocky, but guidance from experienced professionals can make it navigable and less intimidating. 

At The Crow Law Firm, we offer skilled guidance to individuals and families facing a mountain of debt. We've walked this path with countless clients, and we're here to guide you through it. If you live in Monroe or anywhere else in Union County, North Carolina, contact us for a consultation. 

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a type of personal bankruptcy that allows individuals to restructure their debts and create a manageable repayment plan. It's also known as a "wage earner's plan" because it's typically utilized by individuals who have a regular income. This type of bankruptcy is different from Chapter 7, which involves liquidating assets to pay off debts. 

In Chapter 13 bankruptcy, the individual works with their bankruptcy attorney to create a repayment plan based on their income and expenses. This plan usually lasts between three to five years and allows the individual to pay off their debts over time. At the end of the plan, any remaining eligible debts will be discharged, and the individual can start fresh with a clean financial slate. 

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Qualifying for Chapter 13 Bankruptcy 

To qualify for Chapter 13 bankruptcy in North Carolina, individuals must meet certain eligibility criteria. They must have a regular source of income and their secured and unsecured debts must fall within certain limits. Additionally, they must not have had a bankruptcy petition dismissed in the previous 180 days due to failure to appear or comply with court orders, or voluntarily dismissed after creditors sought court relief to recover property they hold liens on. 

So, if you think you might qualify for Chapter 13 bankruptcy, what does the process of filing look like? 

Filing for Chapter 13 Bankruptcy 

Filing for this kind of bankruptcy involves several considerations. An attorney can help you manage the following elements and more: 

  • Providing Necessary Information: Individuals must provide detailed information about their financial situation. This includes a list of all creditors and the amounts and nature of their claims; the source, amount, and frequency of the debtor's income; a list of all of the debtor's property; and a detailed list of the debtor's monthly living expenses. 

  • Understanding Your Repayment Plan Details: The repayment plan is a critical part of Chapter 13 bankruptcy. The individual, in coordination with their lawyer, creates a plan to repay all or part of their debts over a three to five-year period. The plan must be approved by the court and should prioritize certain debts. It must account for fixed amounts going to secured debt (like a car loan) and priority unsecured debt (like child support or recent taxes), before any other payments are made. Once the repayment plan is confirmed by the court, the debtor must begin making payments to the trustee, who then distributes the money to the creditors according to the terms of the plan. 

The goal at The Crow Law Firm is to make the process as stress-free and manageable as possible for each and every client. Our attorneys will work closely with you to understand your unique financial situation and create a personalized plan to help you move forward. We'll also handle all communication with creditors, providing you with the relief of not having to deal with constant phone calls and letters. 

When Is Chapter 13 a Good Debt Relief Option? 

Chapter 13 bankruptcy is a good debt relief option under several circumstances:  

  • First, if you have consistent income but are struggling to keep up with multiple debt payments, Chapter 13 can help consolidate your debts into one manageable monthly payment.   

  • Second, if you're facing impending foreclosure or repossession, Chapter 13 bankruptcy can provide a lifeline. It can halt these processes and give you an opportunity to catch up on missed payments over time.   

  • Third, Chapter 13 can be a good option if your debts are primarily unsecured (like credit cards or medical bills) because it can significantly reduce or even eliminate these types of debts.  

  • Last, if preserving your credit rating is important to you, Chapter 13 bankruptcy may be a strong choice for you and your finances. Unlike Chapter 7 bankruptcy, which remains on your credit report for ten years, Chapter 13 bankruptcy is typically removed after seven years. 

Chapter 13 Bankruptcy Attorneys in Union County, North Carolina

Bankruptcy is often stigmatized and misunderstood, but it's actually a legal tool designed to help individuals regain control of their finances. Chapter 13 bankruptcy can be a lifeline for individuals and families when they need it the most. Don't hesitate to contact us at The Crow Law Firmwith any questions or concerns. We’re proud to serve clients in Union County, NC, as well as Mecklenburg, Cabarrus, Stanley, Anson, Chesterfield, Lancaster, and York counties.