Request an explanation from you Charlotte bankruptcy attorney, about the changes in the law as it pertains to bankruptcies. These cases come under the jurisdiction of a federal, not a state, court of law. Each is a district court and is the place to file petitions for those people in a specific geographical area.
At last count there were 94 of these district courts. This existing system was put into effect on April 1, 1984. Each district court judge is appointed as opposed to elected. Your lawyer will explain the different Chapters that can be filed.
There is the Chapter 7 in which the petitioner is absolved of all outstanding debt, except for specific exemptions. Assets must be liquidated and the proceeds delivered to creditors to cover a portion of the debt owed. Usually an exemption is allowed for the home and one or two cars. A couple filing jointly will usually be allowed to keep two cars.
Filing a petition is not going to relieve you of any taxes you owe. These include federal taxes, state taxes and property taxes owed. To keep from losing a home to foreclosure, a Chapter 13 is the type to file for. You will have to prove sufficient income to cover not only your debt, but your reasonable needs for maintaining your life, mortgage payments, utilities and food for example.
Basically, the Chapter 7 removes most debt and Chapter 13 creates a plan in which all debt is repaid over a period of time. That length of time used to be three to five years. Recent changes in the law now dictate that most repayment plans will be extended over the five year option.
All debt, with the exception of that which law dictates must be repaid, is absolved in a Chapter 7. Among that which cannot be discharged are tax debt, student loans and child support payments ordered by a family court. In your first consultation, your Charlotte bankruptcy attorney can explain all the nuances that relate to filing a petition. You can be guided through the decision making process to determine what will be best in your case.
At last count there were 94 of these district courts. This existing system was put into effect on April 1, 1984. Each district court judge is appointed as opposed to elected. Your lawyer will explain the different Chapters that can be filed.
There is the Chapter 7 in which the petitioner is absolved of all outstanding debt, except for specific exemptions. Assets must be liquidated and the proceeds delivered to creditors to cover a portion of the debt owed. Usually an exemption is allowed for the home and one or two cars. A couple filing jointly will usually be allowed to keep two cars.
Filing a petition is not going to relieve you of any taxes you owe. These include federal taxes, state taxes and property taxes owed. To keep from losing a home to foreclosure, a Chapter 13 is the type to file for. You will have to prove sufficient income to cover not only your debt, but your reasonable needs for maintaining your life, mortgage payments, utilities and food for example.
Basically, the Chapter 7 removes most debt and Chapter 13 creates a plan in which all debt is repaid over a period of time. That length of time used to be three to five years. Recent changes in the law now dictate that most repayment plans will be extended over the five year option.
All debt, with the exception of that which law dictates must be repaid, is absolved in a Chapter 7. Among that which cannot be discharged are tax debt, student loans and child support payments ordered by a family court. In your first consultation, your Charlotte bankruptcy attorney can explain all the nuances that relate to filing a petition. You can be guided through the decision making process to determine what will be best in your case.
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