Filing Bankruptcy in Charlotte
Bankruptcy attorney Jack Lezman has over ten years of experience helping individuals through the process of recovering from overwhelming debt.
He can provide personal, specialized guidance for your Charlotte bankruptcy filing and get you back on the road to financial recovery. When you are seeking bankruptcy advice, it is important to understand your legal rights so that you get all the help you are entitled to under the law.
We provide a free initial consultation. If you want more information about personal bankruptcy Chapter 7 or Chapter 13 bankruptcy litigation, please call us at 704-323-8201, or contact us via our online email form with any questions you have.
Charlotte Bankruptcy Laws
Before you decide that you don’t qualify for Chapter 7 or Chapter 13 bankruptcy, read the facts about bankruptcy.
The major difference between Chapter 7 and Chapter 13 bankruptcy is that the Chapter 7 is a discharge of all unsecured debts like credit cards, medical bills, personal loans, utility bills, those kinds of things, repossession debts, etc. where basically you get a clean slate where all those debts are discharged or wiped out where you won’t have to repay any of those debts.
Chapter 13 bankruptcy is a repayment plan, more like a debt consolidation where you can combine all your bills into one and then pay them back to the bankruptcy court, which is usually used when you are behind on payments such as house payments and car payments, and you need more time to get caught up.
In April 2005, consumers learned that the newly signed Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 would make it harder for individuals to clear their debts if they file bankruptcy
Chapter 7 Bankruptcy in Charlotte
According to a Federal Judiciary Courts report, Chapter 7 bankruptcy filings were cut almost in half from 1,346,201 in 2005 to 833,000 in 2006 after the new bankruptcy laws took effect. In 2008, 679, 982 individuals filed for Chapter 7 protection.
Chapter 7 bankruptcy is more difficult to qualify for because it allows for debts to be discharged rather than the payment plan system that prevails under Chapter 13. While this is true, it is still possible for most individuals to qualify for Chapter 7 bankruptcy protection. If you still show that your income is low enough to qualify for Chapter 7, then you can still discharge all of those unsecured debts.
If your income is above the median income level for the area in which you live, a second test checks for your tax deductions and actual expenses, like mortgage payments, car payments, and health insurance. If your income minus these deductions shows you have little or no disposable income, you can still qualify for Chapter 7 bankruptcy under the new law.
Chapter 13 Bankruptcy in Charlotte
Chapter 13 bankruptcy filings decreased from 429,316 in 2005 to 272,937 in 2006 after the new bankruptcy legislation was effective. In 2008, 353,828 individuals filed for Chapter 13 bankruptcy protection.
Chapter 13 is easier to qualify for because it involves creating repayment plans rather than discharging debts. In a Chapter 13 bankruptcy filing, you are put on a repayment plan lasting up to five years. Some of your unsecured debts, such as credit cards and medical bills, can be repaid at a lesser amount than the actual balance. The remaining balance can then be discharged or wiped out at the end of the repayment plan. Before the federal changes to bankruptcy law in 2005, vastly fewer people filed for Chapter 13 than for Chapter 7 bankruptcy protection.
Contact Us Today
If you need more information, please call us today at 704-323-8201, or contact us via our online email form to arrange a no cost, no obligation initial consultation.
